Nafcoc invests in cutting edge media technology
Mobile TV has a new investor, as the National African Federated Chamber of Commerce and Industry (Nafcoc) has purchased a 20% stake in the business.
"This Nafcoc investment is likely to have a major impact on ownership, control and management demographics in South Africa, as it represents the first time that an organised black business grouping has invested in cutting edge technology in the media sector," says Dr Mothobi Mutloatse, founder and chairman of Mobile TV.
"The new technology that Mobile TV brings into the broadcast sector will deal with the issue of lack of access to information and entertainment in the rural and deep rural areas," says Lawrence Mavundla, chairman of the newly created investment arm of Nafcoc.
Ready for the next round
"If one considers the investment required to purchase a set-top box to decode encrypted television signal, it makes complete sense to circumvent the cost and go directly to the mobile technology that is available. The business opportunities are endless and the investment decision wasn't a hard one to make," confirms Mavundla, who will gain a seat on the Mobile TV board, as a result of the stake that Nafcoc has taken up.
Mutloatse explains that the Korean technology the company chose, Digital Multimedia Broadcasting (DMB), is not only ubiquitous but is far ahead of anything currently available in South Africa, specifically in terms of its interactive services. After 15 months of testing and a temporary licence to refine the technology, the company is ready for the next round, which included raising capital and applying for a permanent broadcast licence.
Turning to the content, Mutloatse explains, "We will have a combination of aggregated content as well as introducing new channel streams under the brand TVG4U, incorporating the innovation referred to as GOV4U, a first in SA broadcasting."
