n June 2024, the Independent Communications Authority of South Africa (Icasa) ordered the pay-TV provider StarSat to cease operations by September 18, 2024. This directive poses significant implications for approximately 600,000 subscribers and 600 employees.
StarSat’s operator, ODM, has been functioning without a valid license since it expired in July 2023. Despite repeated warnings from the regulator, ODM has resisted closure, continuing its broadcasts and assuring customers that their services would remain uninterrupted.
The media company has cited challenges in securing investment, establishing a new shareholder agreement, and financial difficulties exacerbated by the COVID-19 pandemic as reasons for its failure to renew the license. ODM has also criticized Icasa for allegedly lacking adequate regulatory support.
Although ODM submitted a renewal application in November 2023—four months after the official deadline—Icasa rejected it as it exceeded the legally permissible timeframe established under the Electronic Communications Act (ECA). According to South African regulations, renewal applications must be submitted no later than six months prior to the license expiration.
Icasa has indicated that while it can grant a grace period for companies to wind down their operations following license expiration, ODM has not complied with requests for a closure plan. The regulator reported sending multiple letters to ODM, asking for a timeline to wind up operations and inform customers, none of which received a response.
This ongoing conflict has raised alarm among StarSat’s customer base, with some subscribers contemplating cancellation of their services due to the uncertainty regarding the company’s future.
In the face of legal and regulatory pressure, ODM remains steadfast. CEO Debbie Wu has reassured the public that there are no intentions to shut down and that the company is exploring legal options to resolve the licensing dilemma.
Icasa has confirmed that failure to comply with its directives will lead to the forced shutdown of StarSat’s operations, potentially disrupting services for over 600,000 subscribers who depend on the platform for their entertainment needs.
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