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Independent Communications Authority of South Africa Act: Inquiry

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4 No. 41070 GOVERNMENT GAZETTE, 25 AUGUST 2017 GENERAL NOTICES • ALGEMENE KENNISGEWINGS Independent Communications Authority of South Africa/ Onafhanklike Kommunikasie-owerheid van Suid-Afrika INDEPENDENT COMMUNICATIONS AUTHORITY OF SOUTH AFRICA NOTICE 642 OF 2017 642 Independent Communications Authority of South Africa (13/2000): Invitation for written representations 41070 (r) O z 00 c oI-I n cn rn(f) zi-i -1 This gazette is also available free online at www.gpwonline.co.za STAATSKOERANT, 25 AUGUSTUS 2017 No. 41070 5 INVITATION INVITATION WRITTEN WRITTEN REPRESENTATIONS REPRESENTATIONS FOR FOR Authority Authority of terms terms of of of the the Independent Communications In In Section Section South South 4B 4B (Act (Act Africa Africa submit submit of of 2000), 2000), interested invited invited Act Act hereby hereby No No 13 to to persons persons are their their written written the the the the representations representations Document Document regarding Discussion Discussion Inquiry Inquiry on on Subscription Subscription Television herewith into into Broadcasting Broadcasting published the the Services Services by by Authority. Authority. of the the Document Document will available available made made Discussion Discussion A A be be the the copy copy on on Authority's Authority's the Authority's website website and and at at at Library Library in in Street, Street, Katherine Katherine (Ground (Ground 164 164 Pinmill Pinmill Floor Floor Block Farm, Farm, D), No. No. at at Sandton Sandton 16h00, 16h00, between between 09h00 Monday Monday Friday. and and to to Written Written representations with the the regard regard Document Document must to to Discussion Discussion be be Authority Authority submitted submitted later the the than than by by 16h00 16h00 October October 2017 31 31 to to post, post, by by on on no no delivery delivery electronically marked marked specifically Microsoft Microsoft Word) (in (in hand hand and and for for or or Refilwe Refilwe Pinmill Ramatlo. Ramatlo. Block Block attention: attention: A, A, Delivery Delivery address: Farm, Farm, 164 164 Katherine Katherine Street, Sandton. Sandton. written written should should Where Where possible, also also representations representations Enquiries Enquiries to: to: mailed mailed be be should should be be e- e- . to to directed directed between between 10h00 10h00 Monday Monday and and to to 011 011 566 -3251/3125; -3251/3125; 16h00, 16h00, Friday. Friday. Authority Authority Written Written representation(s) this the the received received by by pursuant pursuant to to notice, notice, will be be for for Authority's Authority's the the available available inspection interested made made by by at at library. persons persons of of At At the submits submits who who written written to to this request request representations representations pursuant any any person person that that Authority Authority determine determine the the notice, notice, portion portion representations representations such such may may or or any any thereof thereof be be of of terms terms of treated treated the the confidential confidential to to section section Act. Act. 4D 4D ICASA ICASA in in is is as as confidentiality confidentiality the the Where Where for for request request the the the request refused, refused, who who made is is person person will will allowed allowed such such be be withdraw withdraw portion(s) portion(s) thereof. to to representations representations or or This gazette is also available free online at www.gpwonline.co.za 6 No. 41070 GOVERNMENT GAZETTE, 25 AUGUST 2017 abbreviations abbreviations List List of of British British Telecommunications BT BT Customer Customer Equipment Equipment Premises Premises CPE CPE Entertainment Entertainment Digital Digital Demand Demand DEOD DEOD on on Satellite Satellite Digital Digital DSAT DSAT DTH DTH Direct Direct Home Home To To Terrestrial Terrestrial Digital Digital DTT DTT Transmission Transmission Digital Digital DVB DVB Broadcasting- Broadcasting- Handheld Handheld Video Video -H -H European European Commission EC EC Electronic Electronic Communications ECA ECA Act Act Electronic Electronic EPG EPG Programme Programme Guide Guide European European EU EU Union Union Index Index Herfindhal- Herfindhal- Hirschman Hirschman HHI HHI Authority Authority Independent Independent Broadcasting Broadcasting IBA IBA Authority Authority of Independent Independent Communication Communication South South Africa ICASA ICASA Information Information Communication Communication Technology ICT ICT and and Internet Internet Television Television Protocol Protocol IPTV IPTV Apply Apply ITA ITA Invitation Invitation to to of of National National NAB NAB Association Association Broadcasters National National Consumer Commission NCC NCC Digital Digital Media Media ODM ODM On for for Organization Organization Cooperation Cooperation OECD OECD Development Development Economic Economic and and of of Communications Communications Office Office OFcom OFcom OTT OTT Over Over The The Top OVHD OVHD View View Open Open HD HD PSL PSL Premier Premier Soccer League League Corporation Corporation Limited Limited South South African Broadcasting SABC SABC SOC SOC South South African Communications SACF SACF Forum Forum Significant Significant Small Small SSNIP SSNIP test test but but Transitory Transitory Increase Increase Prices Prices Non Non in in Television Television TNT TNT Terrestre Terrestre Numerique Numerique of of Associations Associations Football Football Union Union UEFA UEFA European European This gazette is also available free online at www.gpwonline.co.za STAATSKOERANT, 25 AUGUSTUS 2017 No. 41070 7 a a EXECUTIVE EXECUTIVE SUMMARY 1. 1. 5 5 Introduction Introduction 1.1 1.1 5 5 subscription subscription African African broadcasting 1.2 1.2 The South sector sector 6 6 of of the the television television Competition Competition subscription subscription 1.3 1.3 in in context context 9 9 of of the the Submission Submission 1.4 1.4 in in comments comments Document to to Discussion Discussion response response 11 11 INTRODUCTION INTRODUCTION 2. 2. 12 12 framework framework within 2.1 2.1 which Legal Legal inquiry inquiry this this conducted conducted is is 12 12 2.2 2.2 Process Process 16 16 Confidentiality Confidentiality 2.3 2.3 23 23 jurisdiction jurisdiction 2.4 2.4 Concurrent 24 24 3. 3. THE THE SCOPE SCOPE INQUIRY INQUIRY AND AND THE THE PURPOSE PURPOSE OF 27 27 3.1 3.1 Overview Overview 27 27 3.2 3.2 and and of of the inquiry Scope Scope 28 28 purpose purpose 4. 4. OVERVIEW OVERVIEW THE THE AFRICAN SOUTH SOUTH OF OF TELEVISION TELEVISION BROADCASTING BROADCASTING SERVICES SERVICES SECTOR SECTOR 32 32 4.1 4.1 Overview 32 32 regulatory regulatory framework 4.2 4.2 legislative and and Policy, Policy, overview overview 32 32 4.3 4.3 Market Market overview overview 38 38 television television Public Public 4.4 4.4 broadcasting broadcasting 41 41 4.5 4.5 Community television broadcasting broadcasting 42 42 4.6 4.6 television television broadcasting broadcasting Commercial Commercial 42 42 -air -air 4.7 4.7 television broadcasting broadcasting Free Free -to -to 42 42 4.8 4.8 Subscription television broadcasting broadcasting 43 43 4.9 4.9 Developments Developments Future Future 44 44 4.10 4.10 Digital Digital migration migration 45 45 DEFINITION DEFINITION MARKET MARKET 5. 5. 46 46 5.1 5.1 Overview Overview 46 46 5.2 5.2 Approach market market definition to to 47 47 Relevant Relevant Substitution Substitution Market: Market: Product Product -side -side Demand Demand 5.3 5.3 48 48 Relevant Relevant Substitution Substitution 5.4 5.4 Market: Supply Supply -side Product Product 49 49 Relevant Relevant Market Market 5.5 5.5 Geographic 49 49 Definition Definition Subscription 5.6 5.6 Market Broadcasting in in 49 49 markets markets 5.7 5.7 Downstream retail 52 52 markets: markets: 5.8 5.8 Upstream wholesale Channel Channel provision provision 59 59 markets: markets: Content 5.9 5.9 Upstream wholesale provision provision 61 61 5.10 5.10 Technical Technical Services Services 66 66 CONSIDERATION CONSIDERATION 6. 6. THE THE EFFECTIVENESS OF OF COMPETITION COMPETITION IN RELEVANT RELEVANT OF OF MARKETS MARKETS 67 67 Overview Overview 6.1 6.1 67 67 6.2 6.2 Approach Approach Proposed Proposed 68 68 for for Market Market 6.3 6.3 Upstream wholesale for for of of content: content: the the Acquisition Markets Markets Cricket, Cricket, Premium Premium Soccer, Soccer, Rugby, Live Live Subscription Subscription First First Movies Movies and TV TV -run -run for for other other Distribution Distribution Content Content Premium Premium Retail Retail South South Africa in in 69 69 This gazette is also available free online at www.gpwonline.co.za 8 No. 41070 GOVERNMENT GAZETTE, 25 AUGUST 2017 for for 6.4 6.4 Upstream Market: Market the for for of of Acquisition Acquisition -Premium Content Non Non Distribution Distribution South South Africa Africa in in 77 77 for for the the 6.5 6.5 Downstream Market Retail Retail of of Distribution Distribution Tier Premium Premium and and Basic Subscription Subscription Television Broadcasting Broadcasting Channels Channels 77 77 7. 7. WITH WITH CONSIDERATION CONSIDERATION LICENSEES LICENSEES OF OF SIGNIFICANT SIGNIFICANT 81 81 MARKET MARKET POWER COMPETITIVE COMPETITIVE POSSIBLE POSSIBLE PRO- PRO- 8. 8. CONDITIONS CONDITIONS 83 LICENCE LICENCE Overview Overview 8.1 8.1 83 83 8.2 8.2 Shorten exclusive contracts contracts 84 84 Introduce Introduce unbundling unbundling 8.3 8.3 85 85 splitting splitting Impose Impose rights 8.4 8.4 85 85 Impose Impose wholesale- 8.5 8.5 -offer -offer must must 86 86 firm's firm's dominant dominant network network 8.6 8.6 Open Open 87 87 up up Introduce Introduce -operability -operability 8.7 8.7 box box inter inter -top -top set set 87 87 9. 9. CONCLUSION 88 88 This gazette is also available free online at www.gpwonline.co.za STAATSKOERANT, 25 AUGUSTUS 2017 No.
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