The influence of regulatory approach on competition in the South African pay-TV market

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.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