As local broadcasters MultiChoice and etv celebrate the issuing of their much anticipated mobile TV licences, industry insiders are less than confident of the offering's success in SA, or even around the world.
Last week, the Independent Communications Authority of SA issued high-frequency radio spectrum licences for mobile TV offerings for 40% capacity to etv and 60% capacity to MultiChoice. This comes as controversial application processes left etv and MultiChoice unrivalled for the spectrum, a situation that leaves much to be desired for competition in the market.
Independent telecommunications analyst Richard Hurst says the invitation to apply for the spectrum should have been opened up a little more to ensure a more competitive market entry.
He argues that the situation of only two licensees may lead to a duopoly scenario and, considering etv's willingness to become part of MultiChoice's DStv bouquet, it may result in a monopoly in the market.
However, World Wide Worx MD Arthur Goldstuck offers a contradicting, but bleak, view. “Considering that we faced a situation, just three months ago, where only one licence was likely, and that the best candidate had been disqualified on a ludicrous technicality, in comparison the situation now represents a best-case scenario.”
Having received their licences, both broadcasters are now committed to rolling out full-capacity services within 12 months; however, analysts question both the short-term and long-term success of the offering.
In the short-term, mobile TV will have little traction in the market, maintains Goldstuck. According to the 2009 Mobility survey, conducted by World Wide Worx, less than 1% of the mobile market in SA is keen to take up mobile TV as a service.
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