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TopStar ZNBC venture leaves govt opposition fuming

By , ITWeb’s Zambian correspondent.
Zambia , 24 Mar 2017

TopStar ZNBC venture leaves govt opposition fuming

Battle lines have been drawn between satellite pay television company MultiChoice Zambia and the Zambia National Broadcasting Corporation (ZNBC) over the national broadcaster's joint venture (JV) with Chinese digital television services provider TopStar and the decision to award 60% shares to TopStar.

The JV will lead to the roll out of TopStar-branded set top boxes for digital television as the country migrates to digital broadcasting. According to the deal, TopStar will collect all ZNBC advertising and tower rental revenue for the next 25 years.

The United Progressive People's party (UPP), the country's official opposition political party,  is among stakeholders who have accused the government of selling the national broadcaster to the Chinese. The UPP has also threatened to sue the ZNBC claiming it was not consulted over the set top box deal.

MultiChoice is challenging the decision in court, while ZNBC has reacted by preventing almost 400,000 subscribers from watching local channels on MultiChoice's GOtv decoders - despite a longstanding agreement with the ZNBC regarding free-to-air channels.

MultiChoice acting Managing Director Ngoza Matakala is seeking a declaration in the Lusaka High Court that the operation of the public signal network by TopStar is illegal and unlawful.

The satellite TV company also wants the court to grant it an injunction restraining ZNBC from interfering with the local channels airing as free-to-air until the matter is fully determined.

Matakala said ZNBC failed to advise her company of the intention to remove free-to-air channels from GOtv transmission.

The Minister of Information and Broadcasting Services Kampamba Mulenga said the government refuses to reverse the decision to commit to TopStar, and said the JV would benefit both the ZNBC and the country.

Revenue collected will go towards the servicing of a US$273 million loan acquired by the government from the Export-Import Bank of China for investment in the digital broadcasting network and the building of provincial studios.

The government has only implemented the first phase of the country's digital migration project, as a result of a lack of funds. However, the necessary funds have been secured for phases 2 and 3 which will include the construction of an undisclosed number of digital transmitters and provincial television studios.

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