[kictanet] Digital to Analog Conversion

[robert yawe]

Hi,

When the migration from analog to digital was initially raised fear was put into the public on how there would be no option but to throw away our analog TV sets and replace them with Digital.

Now that digital transmission is finally here we need to look at how to make the migration as painless as possible while at the same time we do not disenfranchise any citizens.

It has been mentioned that there are over 1 million TV sets in Kenya today, that means 1 million digital to analog converters will be required over the next 2-3 years.

I believe this is a great opportunity for us to go into the electronic assembly business, I would like to propose that we 1st increase duty on converters from the current 35% to 250% so as to discourage the importation of the converters.

Then exempt from duty and vat all assembly stations, test equipment and components for anyone who sets up a converter assembly plant, with a 3 year tax holiday.  If you setup the plant more than 200 kilometers from Nairobi or Mombasa you receive an addition 2 years tax holiday.

I believe this will sort out the issue of substandard converters and will also provide an opportunity for us to develop our electronic devices assembly skills.

If you make a net profit of 1,000/- there is a clean 875,000,000/- to be made, close to what the government is spending on purchase of the Malili farm. This is assuming a standard device, there is still a market for those who want high end devices with recording, tuners, USB ports, etc which would mean that the returns could be much higher than projected above.

So will we move away from juts being importers and retailers or do we have what it takes to do some value add?

Regards


Robert Yawe

KAY System Technologies Ltd

Phoenix House, 6th Floor

P O Box 55806 Nairobi, 00200

Kenya



Tel: +254722511225, +254202010696


      
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <https://lists.kictanet.or.ke/pipermail/kictanet/attachments/20091216/88747576/attachment.htm>