Court challenge holds back launch of cellphone TV services
August 18, 2009
By Thabiso Mochiko
An urgent court application by e.tv to have the broadcasting digital migration regulations set aside could further delay the launch of cellphone TV services, which was expected before next year's Fifa World Cup.
Last month the Independent Communications Authority of SA (Icasa) published the regulations, which set guidelines for the migration to a digital broadcasting platform and the allocation of new television channels to broadcasters.
The move to analogue will free up the scarce radio frequency spectrum, which will allow for additional services such as cellphone TV and more television channels.
The court application is expected to be heard on September 15.
Icasa withdrew an invitation to apply for two cellphone TV licences earlier this year following pressure from e.tv. But it was expected to issue another invitation later this year.
MultiChoice has been piloting the service for the past three years and hoped to launch it before the World Cup.
e.tv included its submission to Icasa on frequency planning made earlier this year as part of the supporting documents to its court application.
In the documents, e.tv urged the regulator to hold hearings on whether there was a market for cellphone TV using digital video broadcasting-handheld (DVB-H) technology.
MultiChoice reiterated yesterday that any delay would have an impact on the launch.
It would not provide projections on the expected take-up of the services. But analysts have previously said there could be a lukewarm reception from consumers as the service was likely to be expensive.
e.tv said the service was for a high-end market, and Icasa should not use a scarce resource (radio frequency), as that should be prioritised for wide-ranging public service needs.
It said the inclusion of cellphone TV without a proper market study and in an uncompetitive sector would only widen the digital divide.
"The fact of the matter is that DVB-H is untried and untested as a service, and, based on international experience, has a very high potential failure," said e.tv.
Icasa's digital migration regulations have been criticised, with a consortium led by black business group National African Federated Chamber of Commerce (Nafcoc) arguing that the regulations would further entrench M-Net's position in the terrestrial pay TV market.
Icasa is planning to allocate new channels to e.tv, M-Net and SABC. M-Net will end up with eight new channels, according to Nafcoc.
Nafcoc wants M-Net to be allocated one new channel, while the rest of the channels should be awarded to black-owned entities. The consortium is expected to file its court papers this week.
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