[kictanet] Digital to Analog Conversion

[Mwololo Tim]

Well argued Robert. I trust PS/MoIC is listening and will take action. tim

On Wed, Dec 16, 2009 at 6:08 PM, robert yawe <robertyawe at yahoo.co.uk> wrote:

> 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
>
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