We can’t continue with MultiChoice monopoly: minister

Communications minister Yunus Carrim says that South Africa cannot continue with MultiChoice’s monopoly in the pay-TV space, which he noted has a 98% control of satellite TV in the country.
Speaking on SABC TV, the minister said: “If you look at MultiChoice, they control 98% of satellite TV…the president has repeatedly said that we must give black players a space, we must deracialise the economy.”
“They (MultiChoice) have 60% of the daily sales of newspapers, 50% of the weekly sales, 70% of the magazines in this country…we cannot continue with this level of monopoly,” Carrim said.
The minister was also critical of an advert placed by MultiChoice in the Sunday papers over the past weekend (16 March 2014).
MultiChoice, Act-SA and Namec published an open letter to Carrim, asking him to allow free, unencrypted digital terrestrial television to launch without any further delay.
MultiChoice criticized government’s position that set-top boxes must include technology which they say is “unnecessary and expensive”. They specifically referred to encryption technology, which is used to control access to TV services, saying it is not needed.
Carrim hit back in a press statement, saying that the open letter is “astonishingly inaccurate and serves to substantially weaken the case of those opposed to the government’s policy”.
“These are the same old, tired issues (raised in the advertisement) that several experts responded to in detail in the facilitation process on the Set-Top Boxes (decoders), necessary for the transition from the current analogue to digital television,” said Carrim.
In his interview on SABC, Carrim was far more candid about his feelings.
“We accept as government that we dithered for a while, but in the last two years if not more, government has been clear about what it wants, it’s the broadcasters and manufacturers who have been feuding up until this very moment.”
“We are ready to move and we are pleading with the broadcasters even at this last hour – why don’t they come to an agreement.
“But even if they don’t, government has to govern, and we have to move forward…we must move forward.”
Advert in poor taste
Carrim said that after six exhausting weeks, MultiChoice and other broadcasters came to an impasse.
“We’ve been keeping the door open to them…out of the blue comes this advert – it shows bad faith, it’s in poor taste, its replete with inaccuracies that they (MultiChoice) themselves know.”
“In short, its odd that a private commercial company speaks on behalf of consumers from which it draws huge profits, and suggests that this MultiChoice represents the nations interests rather than the government does – it’s like the landlord saying, I represent the interests of the tenant,” the minister said.
Make satellite TV cheaper!
“If they really feel strongly about the consumer, why don’t they make pay TV cheaper, why don’t they make available sport and other activities they have premier content access to the poor and disadvantaged,” Carrim said.
“Government has the responsibility to respect their (the poor and disadvantaged’s) interest.”
“While they are negotiating, while we are keeping the door open they released this advert…which has shot them in their foot.”
More on digital TV
Minister lashes out at MultiChoice digital TV ad
Digital TV in SA: no encryption needed, says Cabinet