Telkom Media has also applauded the transparency of the licensing process. “Allowing new pay-TV licences will foster much-needed competition in the subscription broadcasting market,” said CEO Mandla Ngcobo.
“Awarding new licences at a time when technology is changing the way we receive and use information indicates Government's appreciation of the importance of improving access to information. The digital divide is still very real. Accommodating additional forms of less expensive pay-TV, as well as IPTV and other mobile platforms to disseminate information, is vital for our young democracy.”
Shareholders in Telkom Media include Telkom, Anant Singh's Videovision Entertainment, MSG Afrika Media and WDB Investment Holdings. This shareholding – as well as the recruitment of a number of industry experts – combines a wealth of electronic media expertise and supports Telkom Media's empowerment policy.
Ngcobo said Telkom Media's offering, financial strength and commitment would also create a platform for other media participants, both local and international, and would bolster infrastructure.
He added that Telkom Media has an arms-length relationship with Telkom and would not receive any preferential treatment, and that access to infrastructure would be competitive and something all service providers could solicit.
Recent appointments to Telkom Media include Jimi Matthews as head of news, Hannelie Bekker as head of general entertainment, Clare O'Neil as head of advertising sales, and Setumo Mohapi as chief technical officer.
Mandla Ngcobo, who has a legal background, was previously Telkom's chief of corporate affairs. Jimi Matthews was former head of news at e.tv and SABC TV. Hannelie Bekker moved from head of programming at SABC 3 to Videovision Entertainment in 2005. Clare O'Neil was formerly GM of SABC television air-time sales. Setumo Mohapi has Bachelors and Masters degrees in Electrical Engineering and Computer Science from Boston's Massachusetts Institute of Technology (MIT), and a PhD in Electrical Engineering (Telecommunications) from the University of the Witwatersrand. He was previously head of wholesale international products and solutions at Neotel.
Telkom Media chief strategy and operations officer, Rikus Matthyser, says the company plans to target the middle market with a low-price satellite pay-TV offering of approximately R100 per month ex VAT.
“We believe we could penetrate some 25% of the total population currently underserved, which represents 40% of the country's television-owning audience. Currently, pay-TV serves only 11% of the higher-income television-owning population, 9% of total TV-owning households. This will boost the media economy linked to payTV and develop innovative forms of interactive content and services to benefit all participants.”
Matthyser and Ngcobo confirmed that Telkom Media would make a substantial investment into the venture on the back of continuous GDP growth, consumer confidence and buoyancy in the market for media technologies, indicated by the growth in DVD sales as well as mobile and television penetration.
“We are confident that our pay-TV proposition is compelling and look forward to being able to make our submission to ICASA as well as reassure any respondents querying our business model or intentions.”
Telkom Media will be making its presentation to ICASA on 12 June 2007 at 2.30pm.
