Introduction
Good morning, ladies and gentlemen, and thank you for joining us today. The purpose of today’s press briefing is for the Authority to formally announce its decision in relation to the applications for new individual commercial sound broadcasting services in the Primary Markets of Gauteng, Cape Town and Durban.
Broadcasting services play a crucial role in deepening our democracy, by among other things, providing a platform for the expression of multiple views; providing entertainment; promoting information dissemination and education; strengthening social cohesion and giving a voice to various sections of the population.
It is for this reason that the legislature deemed it fit to have various limitations with respect to the ownership and control of broadcasting services in order to promote diversity.
The licensing of additional commercial sound broadcasting services will also stimulate competition and provide choice and variety of radio services available to South Africans. This process also ensures that previously disadvantaged individuals are given an opportunity to participate meaningfully in the sector, at both shareholding and operational levels.
The process
Today thus sees the culmination of a process that began with the publication, on 27 March 2009, of an Invitation to Apply (ITA), inviting applications for individual commercial sound broadcasting service licences in the primary markets. A Council Committee was established to consider the applications received, conduct hearings and make recommendations to the Council with respect to the awarding of licences.
The Council Committee comprised of Cllrs Fungai Sibanda and Nomvuyiso Batyi, assisted by Thabo Ndhlovu (Project Leader), Fikile Hlongwane, Ndondo Dube, Piliswa Ngcwabe, Bethuel Makola, Monde Mbanga, Ndawo Khanyile and Nomvula Zinto.
The Authority would like to thank the Council Committee, including those members that have since left, for the work done.
Forty one (41) applications were received in response to the ITA, thirteen (13) from Gauteng, thirteen (13) from Cape Town and fifteen (15) from Durban. The Authority granted confidentiality to the applicants who met the requirements for confidentiality and refused those that did not meet the requirements in terms of section 4D of the Independent Communications Authority of South Africa (ICASA) Act.
Public hearings for the primary market applications were held from 10 to 26 November 2010 at the ICASA’s offices in Sandton, Johannesburg.
The Council Committee, after finalising its analysis and deliberations developed a Reasons Document and made recommendations to Council in respect of the applications for Council's consideration and decision. A final Reasons Document setting out the Authority’s decision on each application will be published by the end of January 2012.
The decision
In coming to a decision to grant or refuse a licence application the Authority considered various criteria set out in the legislation and the ITA as published. Amongst others, the Authority considered each applicant’s level of HDI participation.
The strength of the research in proving demand, need and support for the proposed service, the financial and business plan projections, as well as the capability, expertise and experience of the members of the senior management team.
As you all know, in a competitive bidding process some will be successful and others not. In this process there is only one licence per primary market. Council considered the Council Committee's recommendations and decided that only one applicant per primary market best met the requirements set out in the legislation and the published ITA. Consequently, the Council decided as follows:
1. That Cape Town Radio (Pty) Ltd be granted a licence in Cape Town.
2. That One Gospel KNI FM (Pty) Ltd be granted a licence in Durban.
3. That Richtrau (Pty) Ltd be awarded a licence in Gauteng.
The Authority may impose conditions on successful applicants in line with the EC Act, taking into account undertakings made or promises of performance stemming from their applications.
The Authority has a proposed solution in relation to the issue of the possible frequency interference in Gauteng and Cape Town which will be addressed between the Authority and the successful applicants.
Conclusion
The Authority would like to congratulate the successful applicants and wish those who were unsuccessful better prospects in the future. An ITA for Medium Wave (MW) frequencies in the primary markets, as well as, an ITA for secondary markets will be published before the end of the current financial year.
The Authority is currently finalising the vetting of the document which will provide the reasons for the decisions to grant the three licences and reject the other 38 applications. The Reasons Document will be made available to all interested parties by January 2012. I thank you for your time and attention, and invite questions.
Statement by ICASA Councillor Fungai Sibanda on the Authority’s decision to licence new individual commercial sound broadcasting services in primary markets
