[kictanet] Is CCK's move to renege on a promise to award a 3rd digital signal distributor license justified?

Wed May 22 15:54:40 EAT 2013

The quagmire here is simple.

Under analogue, the frequencies are limited and advertisers have to choose
from the few outlets, each of them a signal distributor in their own right,
based on who among the 4 or 5 of them offers best value.

Under digital, content developers do not have to go to these outlets, they
can get their own channel. Media Owners either have to invest a lot of
money to develop in-house content, or buy it at a premium. They then have
no guarantee that anyone is watching given the multitude of channels
available.

Pretty soon, specialized channels, such as sports, movies, docus will cut
their niche and become advertiser magnets for their special demographics.

Citizens, NTVs and KTNs of this world can do one thing - adopt the US style
approach and sign different channels as their affiliates providing them
with national TV content such as National news and specialized programming
and leaving them to their own devices during the daytime/off-peak hours.

But it is not likely that they would be allowed to become some sort of
signal distributors themselves. Even if they were to be licensed, it is
unlikely that they will be able to catch up with Signet, Startimes given
the technical expertise and capital outlay required.

For now, they should really invest in their strengths - national news
gathering teams. This is what will distinguish them from other channels.

JG

On Wed, May 22, 2013 at 3:09 PM, robert yawe <robertyawe at yahoo.co.uk> wrote:

> Hi,
>
> If they are so concerned about monopolistic tendencies why have they not
> requested for a power generating license, a police force license, a
> military license, an ISP license, sewage treatment license, lay their own
> marine cable into the Internet backbone and  get a mobile license.
>
> Startimes are doing distribution they are not a content producer unlike
> our media houses who want to retain the monopoly of being both which has
> resulted in the consumer (@COFEK) being provided with mediocre content over
> a wanting signal.
>
> Regards
>
> PS.  I am yet to buy shares or be appointed to the board of StarTimes
>
>
> Robert Yawe
> KAY System Technologies Ltd
> Phoenix House, 6th Floor
> P O Box 55806 Nairobi, 00200
> Kenya
>
> Tel: +254722511225, +254202010696
>   ------------------------------
>  *From:* Ali Hussein <ali at hussein.me.ke>
> *To:* robert yawe <robertyawe at yahoo.co.uk>
> *Cc:* KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke>
> *Sent:* Wednesday, 22 May 2013, 14:50
> *Subject:* Re: [kictanet] Is CCK's move to renege on a promise to award a
> 3rd digital signal distributor license justified?
>
> Robert
>
> +1 :)
>
> Seriously though is there a clause that ensures we are protected from
> Monopolistic tendencies? Is the Government ensuring that all broadcasters
> would have access without the 'owner' of the signal resorting to exorbitant
> or extortionist tendencies? Maybe this is what the broadcasters are
> fearing?
>
> The other contentious issue is whether it is fair for the 'owner' of the
> signal to also compete in distributing content? I'm not an expert in this
> area so mine is a layman's argument which may not hold any water.
>
> Ali Hussein
> CEO | 3mice interactive media Ltd
> Principal | Telemedia Africa Ltd
>
> +254 713 601113
>
> "The future belongs to him who knows how to wait." - Russian Proverb
>
> Sent from my iPad
>
> On May 22, 2013, at 10:46 AM, robert yawe <robertyawe at yahoo.co.uk> wrote:
>
> Hi,
>
> Yes, especially since 2 is already tooooooooo many, it is justified as the
> consumer (@COFEK) suffered for many years when forced to purchase a myriad
> of antennae to receive the various signals transmitted from different
> directions (Ngong, Limuru, CBD, Kariadudu).
>
> In addition the signal foot print for Startimes is already larger than
> that of all the analogue stations combined, we have devolved the government
> it is foolhardy to want to devolve the airwaves.
>
> Signal transmission is not a competitive advantage but more a strategy by
> the incumbents to raise the barriers to entry (never knew I would ever use
> that statement) and stifle the growth of new entrants into the broadcast
> playing field.
>
> With a single  digital signal distributor you will be able to setup AliTV
> for as little as Kes. 500,000/- per month for the signal distribution plus
> 5,000/- for a 2 MB local loop connection to the distributor.  The fear of
> the incumbents is that you might convince 10 of your friends to place
> adverts on your channel at 100,000/- per month instead of on the current
> channels at 100,000 for a 15 second slot, do the math.
>
> Cofek needs to get off the road so this truck can finally run over the
> stifling incumbents once and for all, who is with me?
>
> Regards
>
> PS.  Those who do not fear teargas can join me for the demonstration, the
> rest can fund the activity (please inbox me for details) and for the rest
> you can +1 this.
>
> Robert Yawe
> KAY System Technologies Ltd
> Phoenix House, 6th Floor
> P O Box 55806 Nairobi, 00200
> Kenya
>
> Tel: +254722511225, +254202010696
>   ------------------------------
>  *From:* Ali Hussein <ali at hussein.me.ke>
> *To:* robertyawe at yahoo.co.uk
> *Cc:* KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke>
> *Sent:* Wednesday, 22 May 2013, 5:21
> *Subject:* [kictanet] Is CCK's move to renege on a promise to award a 3rd
> digital signal distributor license justified?
>
> In a move that is likely to open up a new battlefront in the Digital TV
> migration saga in Kenya, CCK announces that it will not after all award a
> 3rd digital signal distributor license to Kenyan Broadcasters.
>
> Saying that the  international regulatory environment has since changed
> and that it would be difficult to go ahead with the plan, the DG asked
> broadcasters to either partner with Signet, a subsidiary of KBC or buy
> shares in Pan African Network, the other distributor of digital signals.
>
>
> http://www.nation.co.ke/business/news/CCK-now-rules-out-third-digital-signal-distributor/-/1006/1858996/-/r5yo02/-/index.html
>
> The Media owners are definitely going to come out fighting.
>
> What's your take?
>
>
> Ali Hussein
> CEO | 3mice interactive media Ltd
> Principal | Telemedia Africa Ltd
>
> +254 713 601113
>
> "The future belongs to him who knows how to wait." - Russian Proverb
>
> Sent from my iPad
>
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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,
> share knowledge, don't flame or abuse or personalize, respect privacy, do
> not spam, do not market your wares or qualifications.
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