P Mashile on Individual Commercial Satellite and Cable Subscription
Broadcasting Licences

Announcement of Individual Commercial Satellite and Cable
Subscription Broadcasting Licences by Independent Communications Authority of
South Africa (Icasa) Chairperson Paris Mashile

12 September 2007

Good morning and a warm welcome to all applicants, colleagues, stakeholders,
members of the media, ladies and gentlemen, all protocols observed.

My name is Paris Mashile, the Chairperson of Icasa and with me is
Councillors Zolisa Masiza and Dr Marcia Socikwa, our new CEO, Mr Karabo
Motlana, our General Manager for the Licensing Division, Mr Sipho Tsotetsi and
the Project Leader for this process, Mr Bruce Mkhize.

The regulator's staff has been poached so often that it has never been
imagined that the converse would happen. Mr Motlana, our new CEO, joined us in
this spring month of September. He brings with him valuable expertise and
leadership from the private sector which we believe will introduce a wave of
change much needed by the Authority at the moment. In keeping to his name, we
believe he will provide all the answers to our questions.

The Authority hopes to achieve the following objectives with the ushering of
the competitive landscape through this process:

* ensure that broadcasting services, viewed collectively, are provided by
persons or groups of persons from a diverse range of communities in South
Africa
* promote the empowerment of historically disadvantaged persons ("HDPs")
including women, the youth and people with disabilities in accordance with the
charter for the promotion of black economic empowerment ("BEE") in the
information and communications technology sector:

* address poverty alleviation
* encourage economic growth and investment
* develop programmes to address the dual economy
* ensure job creation;
* ensure Broad-based Black Economic Empowerment;
* liberalise the sector
* ensure access and affordability of services.
*Guarantee a higher and wider customer satisfaction index.

Process

In terms of the repealed section 31 (2) of the Broadcasting Act, the
Authority was enjoined to, as soon as was reasonably possible, conduct a
licensing process in respect of commercial subscription broadcasting services.
In furtherance of this legislative provision, the Authority published a
discussion paper on 23 April 2004 and invited public comments with the view of
developing an overarching policy framework within which the licensing of
subscription broadcasting services would take place.

The process culminated with the publication of the Position Paper on
Subscription Broadcasting Services in June 2005. Thereafter, the Authority
published an invitation to apply (ITA) on 31 January 2006, calling upon
interested parties to apply for Commercial Satellite and Cable Subscription
Broadcasting Services. The ITA was issued in terms of section 41 of the now
repealed IBA Act and it set the closing date for applications at 31 July
2006.

Before the closing date, specifically on 19 July 2006, the Electronic
Communications Act 35 of 2005 ("the EC Act") came into force. It repealed the
IBA Act in its entirety and amended some provisions of the Broadcasting
Act.

In terms of Section 92(7) of the EC Act, all the applications that were
pending before the Authority, upon the coming into effect of the EC Act, were
to be dealt with as if they were received in terms of the EC Act and were to be
considered in terms of the relevant provisions of the EC Act. In view of the
above, the Authority published a notice in the Government Gazette on 28 July
2006 extending the closing date of submission of the applications to 31 August
2006 in order to give prospective applicants an opportunity to amend their
applications, taking into account the provisions of the EC Act.

On 31 August 2006 the Authority received 18 applications from the following
applicants:

* African Spirit Trading 330 (Pty) Ltd
* Black Earth Communication CC
* Deukom Television (Pty) Ltd
* E-SAT
* Goal Technology Solution (Pty) Ltd
* Khetha Media (Pty) Ltd
* Laegoma (Pty) Ltd
* Max TV (Pty) Ltd
* Multichannel Television (Pty) Ltd
* Multichoice Africa (Pty) Ltd
* Ndabenhle Group (Pty) Ltd
* On Digital Media (Pty) Ltd
* Q Digital Cable Vision (Pty) Ltd
* Quantic TV Network (Pty) Ltd
* Sentech Ltd
* Telkom Media (Pty) Ltd
* Walking on Water Television (Pty) Ltd
* Worldspace Southern Africa (Pty) Ltd

The Council of Icasa, acting in terms of section 4(4) read with section 17
of the ICASA Act, appointed a committee of Council comprising of Councillors
Masiza and Socikwa to consider applications and conduct hearings in terms of
section 9 (2) (e) of the Electronic Communications Act. In considering the
applications the Committee was guided by the provisions of the EC Act, the
Broadcasting Act as amended, ICASA Act as amended, Position Paper on
Subscription Broadcasting Services, the ITA and other relevant legislation and
applicable regulations.

The ITA required of applicants for commercial satellite and cable
subscription broadcasting services to provide, amongst others, the information
in respect of the following: legal form, ownership and control, management,
staffing, applicant's general history, external assistance, finances, market
and audience research, complaints and codes of operation, programming and
technical information.

Therefore, in considering applications lodged, the Authority took into
account the extent to which each application complied with the requirements of
the ITA and in instances where we are of the opinion that the application had
not fully or substantially complied with the ITA, the applicants were given the
opportunity supplement their applications. The Authority received a written
notice of withdrawal from the process from the following applicants: Worldspace
Southern Africa (Pty) Ltd; Multichannel Television (Pty) Ltd and Sentech Ltd.
Despite all these, the Authority was still left with momentous task of deciding
on the remaining 15 applications.

After the Committee had finalised its analysis and deliberations it then
made recommendations to Council in respect of the successful applicants for
Council's consideration and decision. The Council considered the Committee
recommendations and decided to grant the following applications, in no
particular order:

But, before we make the announcement, I would like to extend the Authority's
gratitude to the people who worked on the committee for their dedication,
professionalism and thoroughness throughout the process. The people who made
this possible are
* Mr Amos Hlabioa
* Mr Bethuel Makola
* Mr Victor Grootboom
* Mr Thato Mahapa
* Ms Gugu Mazibuko
* Ms Fikile Hlongwane
* Mr Kgomotso Mokitle
* Mr Paseka Maleka
* Mr Patrick Meyer
* Mr Johannes Kgampe
* Ms Barbara Paxinos
* Ms Khethiwe Kubheka
* Mr Molahlehi Msimanga.

Back to what we are here for, the successful applicants, in no particular
order:

Before I proceed, it is important that we emphasise that for the applicants
who are successful, the Authority has imposed conditions in line with the EC
Act and the undertakings made or promises of performance stemming from their
applications.

1. Walking on Water
2. On Digital Media
3. e-SAT
4. Telkom Media
5. MultiChoice Africa

The Authority decided to refuse applications by all ten remaining
applications.

In terms of the provisions of Promotion of Administrative Justice Act
(PAJA), the Authority is currently finalising the document which will provide
the reason for the decisions, which will be made available to all interested
parties within a period of three weeks starting from today. On behalf of Icasa,
we wish the successful applicants the best of luck in their endeavours and we
hope that they will better the lives of our people. We wish you well.

Thank you.

Issued by: Independent Communications Authority of South Africa
12 September 2007

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