Grace Ashiru
South Africa’s Independent Communications Authority (Icasa) has issued a stern warning to StarSat’s parent company, On Digital Media (ODM), demanding that the company cease operations after failing to renew its broadcasting license. However, despite this directive, StarSat’s customer service agents continue to reassure subscribers that their service remains unaffected, causing widespread confusion among its 600,000 users regarding the status of their subscriptions.
In June 2024, Icasa instructed the pay-TV provider to shut down by September 18, 2024, a decision that could potentially affect not only subscribers but also the company’s 600 employees. ODM has been broadcasting without a valid license since its expiration in July 2023, and despite repeated warnings from Icasa, the company has refused to close, continuing its services and assuring customers that there will be no disruptions.
ODM has blamed its delay in renewing the license on several factors, including challenges in securing investment, finalizing a new shareholder agreement, and financial difficulties stemming from the COVID-19 pandemic. Additionally, the company has accused Icasa of not offering enough regulatory support during these struggles. Although ODM eventually submitted a license renewal application in November 2023—four months past the deadline—Icasa rejected the application, citing that it was beyond the legally permitted timeframe outlined in the Electronic Communications Act (ECA), which requires renewal applications to be submitted no later than six months before the license’s expiry.
While Icasa has indicated that it can grant a grace period for companies to wind down their operations after their license expires, ODM has failed to comply with the regulator’s repeated requests for a closure plan. Icasa has sent multiple letters asking ODM to provide a timeline for winding down operations and notifying customers, but these requests have gone unanswered.
The uncertainty surrounding StarSat’s future has caused concern among its customer base, with some subscribers considering canceling their services due to the ongoing legal dispute. Despite the mounting pressure from regulators, ODM remains defiant. CEO Debbie Wu has assured the public that the company has no intention of shutting down and is currently exploring legal options to resolve the licensing issue.
Icasa has made it clear that if ODM fails to comply with its demands, it will forcibly shut down StarSat’s operations, potentially leaving over 600,000 subscribers without access to their entertainment platform.
