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Reasons for Decision on Kwesé TV Released

August 22, 2019

Independent Communications Authority

22 August 2019

The reasons for deciding to grant Kwesé TV a Commercial Free to Air Television Broadcasting Services Licence have been released.

In a statement, the Independent Communications Authority (ICASA) declared that the “licensing of an additional Individual Commercial Free-To-Air Television Broadcasting Licence and Radio Frequency Spectrum Licence will stimulate competition and increase the variety of television broadcasting services available to South Africans”.

Kwesé TV was granted the Free-To-Air Television Broadcasting Licence in March 2019.

The Reasons for Decision document outlines details of the process and procedure that lead to the granting of the licence to Kwesé Free TV.

Criteria considered in the decision-making process included compliance with the relevant provisions of the Electronic Communications Act; compliance with the requirements of the Invitation to Apply; market research: demand, need and support of the proposed service; viability of the business plan and financial means of the applicant; and capability, expertise and experience of the applicant and its employees in business in general and in broadcasting in particular.

ICASA holds the view that Kwesé TV is staffed by people with the necessary expertise, experience and capability in the broadcasting industry, has demonstrated sufficient demand and need for the proposed broadcasting service, put forward reasonable cost projections and has revenue growth assumptions indicative of a growth company.

Meanwhile, in another statement, ICASA announced its intention to review the Price Cap Regulations for Reserved Postal Services, in particular the South African Post Office.

According to ICASA, the review is necessary as the “postal services sector has, in recent times, undergone large changes that are shaped by, among other forces, technological progress and a need to alter regulatory frameworks to ensure effective provision of the postal services”.

“The review process is mainly to impose effective price controls in the reserved postal services and to ensure that regulation of the reserved services environment remains appropriate and sufficient to secure the efficient and financially sustainable provision of the reserved postal services.”

A Regulatory Impact Assessment on the Regulations found that the “current price control obligation is no longer effective or proportionate”.

A questionnaire calling for information and opinions from stakeholders will be released soon.