The influence of regulatory approach on competition in the South African pay-TV market
Date
2014-02-03
Authors
Thothela, Monamodi Owen
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Abstract
In the year 2004, before the advent of competition in the South African
subscription television broadcasting market the Independent Communications
Authority of South Africa (ICASA) identified various potential barriers to enter this
market. Then, in January 2006 ICASA issued an invitation to apply for
commercial satellite and cable subscription television broadcasting licenses.
Eighteen applications were received and five were licensed during November
2007. The purpose of this qualitative study is to assess how effective the
regulatory approach has been in addressing the identified entry barriers and in
promoting competition and convergence in this market. The findings from the
research study indicate that there is lack of effective and sustainable competition
and convergence in the market, and that the applicable light-touch regulatory
approach is preferred for this market but needs to be intensified. This may seem
contradictory, but it is not if the regulator is regarded as absconding from its
responsibilities. A significant finding is that ICASA is viewed as a weak regulator
that is absconding from its regulatory obligations in this market. Some of the
important negative findings include: there are extensive barriers to entry which
have created an uneven playing field that favours the dominant operator; ICASA
and the Department of Communications have been captured by the dominant
operator; there is monopoly in the ownership of content rights which stems from
abuse of content exclusive rights and lack of relevant regulations; and the
regulatory framework and licensing regime should be modified in the context of
the migration to the Digital Terrestrial Television transmission, the urgent need to
promote competition in this market and the creation of a converged
communications industry in the country.
Description
Thesis (M.M. (ICT Policy and Regulation))--University of the Witwatersrand, Faculty of Commerce, Law and Management, Graduate School of Public and Development Management, 2013.
Keywords
Television broadcasting, ICASA, Independent Communications Authority of South Africa., Competition, Telecommunications