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

[摘要] In the year 2004, before the advent of competition in the South Africansubscription television broadcasting market the Independent CommunicationsAuthority of South Africa (ICASA) identified various potential barriers to enter thismarket. Then, in January 2006 ICASA issued an invitation to apply forcommercial satellite and cable subscription television broadcasting licenses.Eighteen applications were received and five were licensed during November2007. The purpose of this qualitative study is to assess how effective theregulatory approach has been in addressing the identified entry barriers and inpromoting competition and convergence in this market. The findings from theresearch study indicate that there is lack of effective and sustainable competitionand convergence in the market, and that the applicable light-touch regulatoryapproach is preferred for this market but needs to be intensified. This may seemcontradictory, but it is not if the regulator is regarded as absconding from itsresponsibilities. A significant finding is that ICASA is viewed as a weak regulatorthat is absconding from its regulatory obligations in this market. Some of theimportant negative findings include: there are extensive barriers to entry whichhave created an uneven playing field that favours the dominant operator; ICASAand the Department of Communications have been captured by the dominantoperator; there is monopoly in the ownership of content rights which stems fromabuse of content exclusive rights and lack of relevant regulations; and theregulatory framework and licensing regime should be modified in the context ofthe migration to the Digital Terrestrial Television transmission, the urgent need topromote competition in this market and the creation of a convergedcommunications industry in the country.

[发布机构] University of the Witwatersrand