Communications responds to MultiChoice's comments on set top boxes

MultiChoice cannot speak for the poor

There have been consultations since 2008 on set top boxes including MultiChoice and other stakeholders. Even a facilitation process initiated by Minister Carrim from September 2013 until 17 March 2014 failed. All the issues raised by MultiChoice were fully addressed in this process.

Set top box (STB) control has been Cabinet policy since 2008, long before Minister Carrim was appointed in July 2013. It was Cabinet that decided on the current policy on 4 December 2013. It was not Minister Carrim’s personal choice, as MultiChoice well knows. It’s an insult to suggest that other Cabinet members blindly followed Minister Carrim like sheep. MultiChoice’s personal attacks on the Minister are really a sign of its desperation.

The policy  is consistent with the ANC’s Mangaung resolutions and other government policies, and will benefit the poor and disadvantaged, who will not be able to afford new digital televisions. It will also, over time, contribute to lowering the cost of pay-tv for consumers.

MultiChoice cannot speak for the poor. It has no mandate from them. It is the poor, after all, who are excluded from watching MultiChoice, including major sports events, over which it has exclusive control.

Nor can it speak for consumers from whom it makes its super-profits.

If it cares so much for consumers, why does it charge so much for its services and excludes the poor? 

MultiChoice has about 98% of the pay-television market and fears competition. It is this that explains its position and its sudden “concern” about the plight of the consumers and even the poor. Its representatives have been extremely aggressive in the negotiations process and want to take part to the extent that they get their way.

Many emerging black manufacturers support STB control. Those who don’t support STB control have decided to accept the current government policy. NAMEC and ACTSA, on the other hand, are to differing degrees dependent on DSTV.

There is nothing unique about the government’s policy. At least 15 other countries are using an STB system similar to that in our policy, even if it’s not set out in government policy in those countries. Unlike other African countries using a similar system, we have it in government policy because South Africa has a local electronics manufacturing sector we have to protect and we provide a subsidy for the indigent.

Despite MultiChoice’s behaviour the doors of the facilitation team remains open to them. But are they serious about negotiating a consensus? Until now they have not been.

 

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