[kictanet] Digital TV signal Distribution row- at Kenya IGF

Fri Jul 22 19:22:25 EAT 2011

*WHY THE DIGITAL TELEVISION SWITCHOVER IS IMPORTANT FOR KENYANS*

 *What is the Digital TV Switchover? *

The digital television switchover simply means that the technology that
enables you to view programs on your television set will change from
analogue to digital.

*What is the difference between analogue television and digital television?*

In a nutshell, for every channel available on analogue television, digital
television enables the viewer to get up to 20 times more channels.

For the television industry, the core difference is in who does the
distribution of content. In analogue, each TV broadcaster (e.g. Nation,
Citizen, KTN, and Family TV) produced content *and then *builds a network to
distribute their own content. In digital, all the current TV companies (KTN,
NTV, Citizen, K24, Kiss) will become content producers and only a few will
become signal distributors.

*Why should Kenya switch from analogue to digital?*

This is a global change that has been agreed by all countries that are
members of the International Telecommunications Union. The global deadline
for switch over is December 2015.

*What was the CCK tender about?*

To facilitate the digital switchover, the Communications Commission of Kenya
decided to split the television broadcast market into two segments: signal
distributors and content providers. With analogue technology, a TV
broadcaster got 1 license that allowed them to both provide their own
content and distribute it to viewers using analogue signal networks. With
digital technology, there will be 2 new separate licenses – one for signal
distribution and another for content distribution. Incumbent broadcasters
are then required to apply afresh to CCK for the licenses that they want to
continue with.

Signal distributors are companies that build, own and manage television
signal networks. The transmission networks comprise frequencies, satellite
capacity, masts, towers, transmitters, antennae and other technology that
make it possible to send television programs from the television studios
over the airwaves to television sets to households across the country.

*How do Kenyan TV broadcasters come in?*

Many of the Kenyan TV broadcasters are actually already signal distributors.
Nation Media Group and Royal Media Services - actually are already signal
distributors, except that the technology they use is analogue. They own
signal distribution networks that they have built for over 10 years and
invested billions of shillings in. Given the new sector laws and
regulations, they are compelled to apply afresh to the Communications
Commission of Kenya to become digital signal distributors. If CCK locks them
out of the sector, they stand to lose billions of shillings.

Content providers are companies that develop, produce, buy and acquire
television content. All television companies in Kenya today including KTN,
K24, Family Media and Kiss FM are content providers. They will all have to
surrender their frequencies to the CCK who will re-issue them to the signal
distributors. They will then focus on providing content. Those that want to
distribute signals are required to apply afresh for a signal distributor
license.

The signal distributors will therefore carry all the programs that the
content providers submit to viewers on their television sets. What is
important to note is that to enable efficient use, there will be only a few
signal distributors. Content providers on the other hand can be as many as
capacity allows.

*CURRENT SITUATION*

CCK decided to license a government corporation – the Kenya Broadcasting
Corporation to become a digital signal distributor. In March 2011, the CCK
advertised tenders for award of 2 licenses to operate a Broadcast Signal
Distribution Network in Kenya purportedly to enable the media in Kenya to
participate in the nationally critical area of signal distribution.

Nation Media Group and Royal Media Services – the two largest broadcasters
in Kenya formed a consortium – *National Signal Networks* - which bid for
one of the licenses. In total six companies were pre-qualified. Kenyan
broadcasters were represented by 2 consortia – National Signal Networks
representing Nation Media Group Limited and Signal Distributors Limited
representing Radio Africa, Standard Media Group, and Mediamax among others.
Because Kenyan broadcasters were extremely concerned that the broadcasting
industry in Kenya should be allocated at least 1 license, Signal
Distributors Limited withdrew its bid and supported the National Signal
Networks bid. By the submission deadline, only 4 companies submitted their
tender. 3 were Kenyan and 1 was Chinese.

The Communications Commission of Kenya then decided to disqualify all the
Kenyan bidders on technicalities and awarded only 1 license instead of the
advertised 2. The license was issued to a Chinese company Pan African
Network Group Ltd, which is owned by Star Times Network of China.

 *WHAT IS THE IMPACT ON THE MEDIA AND BROADCASTING INDUSTRY?*

*There are 2 core impact areas: Media Freedom and losses of investments
made.*

*MEDIA FREEDOM: *

Under analogue, each broadcaster had full control of their own signals. This
enables international levels of media freedom. The government could only
control the media by brutal and coercive force. Under digital, control of
signals will be surrendered to a few companies. Media owners will not be
able to directly prevent censorship and muzzling. The government can muzzle,
censor and control all broadcasters by simply intimidating the 1 or 2 signal
distributors that it has licensed. To illustrate this, during the 2007
election crisis, with analogue television the government could only control
the media at gun point. And it would have had to do this in up to 20 media
houses. Under digital television, it only needs to threaten the 2 signal
distributors.

The reason the CCK decision is dangerous for media freedom and the
functioning of a modern democracy is that the CCK has chosen to hand over
control of the airwaves to a government parastatal (KBC) and a company from
communist China. Kenyan media organizations will have absolutely no ability
to ensure that news reaches the masses - however positive or negative of the
government it might be and however critical the national issues might be.
This will have the effect of making the media in Kenya impotent.

*LOSSES OF INVESTMENT*

Nation media Group and Royal Media Services *have already investments over a
billion dollars in signal distribution*. Hundreds of Kenyans work hard every
day to manage these complex and huge networks from Mombasa to Busia and
Lodwar to Namanga. By locking out Kenyan broadcasters from this sector, CCK
will cause massive losses to Kenyan broadcasters some of whom are publicly
quoted companies with hundreds of thousands of shareholders. The Kenyans who
manage these networks will be forced into unemployment in these tough
economic times.

On Fri, Jul 22, 2011 at 5:35 PM, Walubengo J <jwalu at yahoo.com> wrote:

> @Wangusi,
>
> thanx for the detailed insight.  I think media houses need to be more
> committed to a balanced reporting in future. Whatever happened to their
> mantra " there are two sides to every story"
>
> walu.
>
> --- On *Fri, 7/22/11, Wangusi, Francis <Wangusi at cck.go.ke>* wrote:
>
>
> From: Wangusi, Francis <Wangusi at cck.go.ke>
> Subject: Re: [kictanet] Digital TV signal Distribution row- at Kenya IGF
>
> To: jwalu at yahoo.com
> Cc: "KICTAnet ICT Policy Discussions" <kictanet at lists.kictanet.or.ke>
> Date: Friday, July 22, 2011, 3:48 PM
>
>
>  A signal distribution market involves building of multiplexing platforms
> and signal transmission infrastructure for the purpose of distributing
> multimedia signals (video, audio and data). in terms of digital migration,
> SD provider is a key player in the digital migration process. under a
> unified licensing framework at the CCK, this is an infrastructure market
> segment capable of providing services beyound broadcasting. it is important
> to remember that broadcasting subsector holds a host of other market
> segments rather than what we usually know as free to air or if you may wish
> call it "free through advertisement" (FTA). this particular market segment
> is just a diminishing market in the wake of new media platforms thanks to
> the rapid evolvement of ICT technologies. there are many
> emerging technologies arising from this market supporting tripple play that
> are are blurring the boundary between broadcasting and telecommunications
> and this may explain why players in the SD market should understand the
> dynamics surrounding the provision of  services under this market segment.
>
> suffice to say, there are only about 3.5M TV sets in the country from the
> last censors report against an investment of close to Ksh.4Billion for each
> signal distribution network for the SD licences that are to be given in this
> market segment. Currently, SIGNET is the only licensed public signal
> distributor which the Government is funding inorder to roll-out throughout
> the country and to fulfill its public service obligations. the Licences that
>  were advertised were for commercial  SD and therefore are only necessary to
> give Kenyans alternatives and to spur the spin-offs of digital migration and
> was done inline with public procurement rules and regulations, the ICT
> sector policy, Information and Communications Act cap 411A and all players
> were accorded equal opportunity. there are enough safety nets in place
> ranging from competition to contructural obligations in the licence to
> offered in the unfortunate but rare circumstances should an investor who has
> poured a cool Ksh. 4Billion wishes to switch off his network simply because
> of an election. why therefore a hulabaloo about this transparent process? if
> you join a race and develop a muscle pull along the way, you cannot be
> carried on the stretcher to a finishing line and be declared a winner simply
> because the race is being held in your country. it is also important for
> us to call on our media houses to practice the principle of fair doctrine
> which demands that when reporting adversely against an entity then that
> entity is given an equal measure to respond inorder to enable
> listners/readers make fairand informed judgement  about the story.
>
> ------------------------------
> *From:* kictanet-bounces+wangusi=cck.go.ke at lists.kictanet.or.ke on behalf
> of Edith Adera
> *Sent:* Fri 7/22/2011 1:07 PM
> *To:* Wangusi, Francis
> *Cc:* KICTAnet ICT Policy Discussions
> *Subject:* Re: [kictanet] Digital TV signal Distribution row- at Kenya IGF
>
>  Why such strong defense for the Chinese? Why not have a national policy
> that signal distribution should be done by locals only? I’m a greenhorn in
> the area of signal distribution – can someone with expertise and experience
> in this area tell us the pros and cons? We need more insights.
>
>
>
> Edith
>
>
>
>
>
> *From:* kictanet-bounces+eadera=idrc.or.ke at lists.kictanet.or.ke [mailto:
> kictanet-bounces+eadera=idrc.or.ke at lists.kictanet.or.ke] *On Behalf Of *Walubengo
> J
> *Sent:* Friday, July 22, 2011 12:44 PM
> *To:* Edith Adera
> *Cc:* KICTAnet ICT Policy Discussions
> *Subject:* Re: [kictanet] Digital TV signal Distribution row- at Kenya IGF
>
>
>
> Just got two interesting alternative views on the above at the ongoing
> Kenya IGF.
>
> 1.  the Chair of the Parliamentary Group, Eng. Rege feels that giving out
> the National Digital Signal Distribution network to a foreigner exposes the
> nation to potential sabotage.  What would happen if the Chinese decided to
> switch of the distribution when "the 2012 votes are being counted?"
>
> 2. the PS, Dr. Ndemo feels that that may really not arise for two
> reasons,(1) that there will be competition in that market, we shall have
> multiple national signal distributors and (2) Most of this signal
> distribution platforms will be over the Internet Cloud and hence the idea of
> switching off the channel may not be that simple (though it did happen in
> Egypt ;-)
>
> the debate continues...
> walu.
>
> --- On *Fri, 7/22/11, Wamuyu Gatheru <wamuyu at soko-id.co.ke<http://mc/[email protected]>
> >* wrote:
>
>
> From: Wamuyu Gatheru <wamuyu at soko-id.co.ke<http://mc/[email protected]>
> >
> Subject: Re: [kictanet] Digital TV signal Distribution row
> To: jwalu at yahoo.com <http://mc/[email protected]>
> Cc: "KICTAnet ICT Policy Discussions" <kictanet at lists.kictanet.or.ke<http://mc/[email protected]>
> >
> Date: Friday, July 22, 2011, 10:31 AM
>
> I think arguing only the merits of the bids in the context of telcoms (a
> strategic/security issue) will only provide half the answers. The country is
> in political transition and headed into another election where the jury on
> peace is still out. In the last few weeks, I have noticed political bias
> starting to appear in TV coverage depending on the political affiliations of
> the owners. The media may forget itself again in the heat of the election
> competition and I would not be suprised if someone in govt. wants the power
> to switch stations off - the Chinese can do this but local media houses
> would find this unacceptable.
>
> Hopefully, if media demonstrate maturity next year, govt. may cease to be
> concerned about who controls the signals.
>
> Its not a nice picture for media freedoms or harnessing local capacity for
> that matter. But there may hard realities the govt. may need to be ready to
> deal with.
>
> On the other hand, I may be entirely wrong and it may well be that the
> Chinese bribe was the biggest!..(another of our hard realities)
>
> Wamuyu
>
>
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> people and institutions interested and involved in ICT policy and
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> sector in support of the national aim of ICT enabled growth and development.
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> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for
> people and institutions interested and involved in ICT policy and
> regulation. The network aims to act as a catalyst for reform in the ICT
> sector in support of the national aim of ICT enabled growth and development.
>
> KICTANetiquette : Adhere to the same standards of acceptable behaviors
> online that you follow in real life: respect people's times and bandwidth,
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