The non-renewal of On Digital Media (ODM) licence, the company operating pay television platform StarSat TV, will have a significant economic impact and worsen unemployment in South Africa, according to the broadcaster.

This comes after the Independent Communications Authority of South Africa (ICASA) ordered StarSat TV to wind up its operations and discontinue broadcasting services by September 18, 2024.

Yesterday, ICASA issued a statement saying despite many reminders, ODM submitted its licence renewal application after the expiry date of November 10, 2023, resulting in the current situation.

In response, StarSat, which has been operating in South Africa for 15 years, said it is both surprised and concerned by ICASA's latest comments, especially given the ongoing legal processes.

“Over the past 18 months, StarSat has maintained consistent and comprehensive communication with ICASA. Any suggestion that the company has failed to engage with the regulatory authority is incorrect, as extensive correspondence is evidence of its commitment to constructive dialogue,” said the satellite broadcaster.

It went on to say: “Given ICASA's commitment to enabling economic growth, the potential loss of jobs is especially troubling. This situation could jeopardise the livelihoods of more than 600 ODM employees and disrupt the broader network of over 4,000 dealers and sales agents who rely on its operations.

"Beyond economic growth, ICASA is also committed to ensuring the dissemination of information, entertainment, and education to the public. StarSat plays a key role in this, providing quality content to over 500,000 subscribers at affordable rates. Its service offers a diverse range of programming that supports the informational and entertainment needs of South Africans."

In a statement, the broadcasters elaborated on its situation, saying: “Owing to challenges in securing new investment in a competitive market, along with the introduction of a new shareholders agreement and the economic pressures following the COVID-19 pandemic, ODM submitted its license renewal application to ICASA later than the required deadline.

“Despite multiple attempts to seek guidance from ICASA officials to address these regulatory challenges, ODM did not receive the necessary support."

Furthermore, the StarSat said the Gauteng High Court recently dismissed an urgent interdict case filed by ODM to halt ICASA's decision to cease operations on September 18, 2024.

Nonetheless, the company said: “A review application is pending to address the substantive legal issues between the two parties once the court date is set.”