BUSINESS NEWS
Telkom applies for pay-TV licence
Posted Fri, 01 Sep 2006
Telecommunications company Telkom applied to the Independent Communication Authority of SA on Thursday for a pay-television licence.
Telkom Media Pty Ltd, a private company with 41.5 percent black economic empowerment (BEE) shareholding, applied for a commercial satellite and cable subscription licence.
"Telkom Media aims to stimulate and lift demand for entertainment services and act as a catalyst for the development of convergent solutions in South Africa," Telkom spokesperson Wally Beelders said in a statement.
"The goal is to substantially broaden access to pay-TV services within the South African population and open the gateway to new convergent services," Beelders said.
According to Telkom's research, the current offerings in the pay-TV failed to address the mass market of South Africa.
"... there is a potential market of over 40 percent of South African households that are interested in and willing to pay for satellite TV
services.
"This is a hugely untapped market that is not addressed by current pay-TV services," Beelders said.
The subscription service would provide seven locally compiled television channels which will contain significant local content.
The seven channels would offer entertainment, 24-hour South African news, movies, sports, music, home shopping and education.
Partners in the joint venture are Videovision Entertainment, MSG Afrika Media and Women Development Bank Investment Holdings Pty Ltd.
Sapa
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