Final call on Telkom Media

When it was awarded a pay-TV licence by the Independent Communications Authority (Icasa) in 2007, Telkom Media was widely touted as the company that would give MultiChoice a run for its money.

Telkom Media has eaten up R500 million in cash since the company was registered in July 2006. In March last year, Telkom announced its intentions to reduce its R7.2 billion shareholding in Telkom Media.

Last month, however, the Telkom Group announced that an investor could not be found and that it would shut the venture.

After an initial five subscription television licences were awarded by Icasa, only two have survived to create competition for MultiChoice.

In September 2007, Icasa awarded subscription licences to Telkom Media, On Digital Media, e.tv's e.sat, Walking on Water TV and MultiChoice.

But e.sat soon bailed out, opting to air its news service on DStv.

WOWtv is already in production of content. It is not a direct competitor to Multi- Choice due to its niche Christian targeting.

Satellite operator ODM is expecting to launch in the fourth quarter of this year, and Vino Govender, its chief executive, says preparations are on track: "ODM has managed to raise sufficient funds to meet its business obligations."

According to Dennis Smit, managing director of ICT research firm BMI-T, Telkom Media's chances of finding a suitable investor evaporated with the onset of the global economic meltdown.

He said: "We all hoped that they'd be a contender to MultiChoice, but nobody was going to invest in a speculative TV venture.

"MultiChoice outplayed everyone by attending the Icasa hearings, listening to rival strategies, and implementing them. It was one of the major flaws of the process."

Govender said there would be enough competition in the market, despite Telkom Media's closure.

Source: The Times

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