[kictanet] AS DN announces their set top boxes where are the two CAs? COFEK Response

Tue Jan 13 16:01:10 EAT 2015

Dear Mr Mbugua,

Many thanks for your well-informed (… save for the unfair attack on us at the end) critique (which we have re-published on our website). Clearly, both Communications and Competition Authorities have allowed excessive leeway to the trio of KTN, NTV and CitizenTv to stifle industry competition to the pain of consumers. 

It is unfortunate that the 3 media houses declined adverts of their competitors – but wake up to a prominent back page story of “advanced set top boxes” being “on the way” as if DVBT-2 type-approved STB’s don’t exist. Kenya is using DVBT-2. Perhaps the consortium will be using DVBT-3 or 4 or whichever qualifies to be “advanced”. Let us leave that to CAK of Waiyaki Way. The CAK of Haile Selassie Avenue must intervene, possibly at their convenience.

Truth however is that - never again and never again – should Kenya’s ICT sector allow excessive dominance of 1, 2 or 3 players – which decide what is news for Kenya, when and how. As of now, we have been restrained to comment on these issues since we are parties to the active suit before the Supreme Court on digital migration. We may appear to be “quiet” but if the 3 media houses control over 80% of the news outlets, and you want to criticize them – will they have any airtime or print-space for you? The answer is no.

At Cofek, we blame the so-called digital government for playing ping-pong on digital migration. Senior GoK officials are shielding the 3 media houses for selfish gain. At least we know but can’t name 3 of them. They know themselves. Yet we find solace in the fact that one day, just one day, Kenya will fully migrate. The dominance, chest-thumping and egos will go. Media empires will slowly but surely crumble and … become castles in the wind – as they tumble to competition from hundreds of more focused and niche-based news outlets. 

They can wine and celebrate the Supreme Court recent ruling. They can make more advertisements on simulcast. They can block competition and criticism. They can peddle their evident influence. They can compel people to read their self-made news about themselves. They can do all manner of things. But let them know or be told two things – consumer is king/queen and innovation is an unstoppable wrecker. It will catch up with them. Like the story of mobile telephony versus defunct Telkom Kenya landline. That time is coming. That time will come. So God help NMG, RMS and SG!

Kind regards,

David Kedode

www.cofek.co.ke 

From: kictanet [mailto:kictanet-bounces+hotline=cofek.co.ke at lists.kictanet.or.ke] On Behalf Of James Mbugua via kictanet
Sent: Tuesday, January 13, 2015 3:03 PM
To: The Consumers Federation of Kenya (Cofek)
Subject: [kictanet] AS DN announces their set top boxes where are the two CAs?

Who’s who between Communications Authority and Competition Authority?

So, today, Daily Nation decided to lead the back page with the news that the three media houses that run KTN, Citizen and NTV will be importing over 1 million of their own set top boxes to retail at about Sh2500 by end of March.

http://www.nation.co.ke/news/Advanced-set-top-boxes-on-the-way/-/1056/2587252/-/ay617f/-/index.html

150,000 of them will be launched within this month.

It sounds like big news and indeed, occupies a prominent space in the paper until, wait, haven’t there been set top boxes being sold in the country on the streets, shops, supermarkets everywhere?

Yes, but belonging to Multichoice GOTV, Startimes and independent set top box vendors.

So, why is DN packaging its plans as big news?

Precisely because acting against the spirit and letter of the Kenya Communications Amendment Act (2009) as well as other Restrictive Trading countermeasures, the three outlets have been stifling information about the existence of other players in the digital migration field even as they seek to tie up digital migration in court.

In the meantime, they are importing their own equipment and planning to use their platforms to exclusion of others to market themselves.

This is illegal.

The Communications Authority of Kenya must begin to enforce the regulations and demand that these media houses, accord the same amount of fair coverage to all players in the digital migration arena or risk losing their signal distribution license.

Licenses must come with terms and conditions and one of those should be that you cannot use existing licenses to unfairly black out competition.

So far both the regulator and the other players have been very tolerating of this consortium but it should be clear to them that it doesn’t mean that they cannot be held up in the same courts of law they are using.

Other Free to Air channels like Kiss, K24, Family, GBS etc can contest the award of the signal distribution license to a cartel that has shown it is willing to abuse its market power to retain market share.

Vertical integration of media houses : - TV, Radio, Newspaper can also be challenged to enforce fair competition not to have the newspapers be used by their owners to advertise the consortium’s set top boxes while refusing to carry adverts for rivals platforms like GoTV or Bamba TV?

Both the Competition Authority and the CAK have a responsibility to speak up on this issue. Cofek, in the meantime after wreaking havoc in the migration process with their busy body ways in 2013, have been unusually quiet in the face of very anti-consumer behaviour by the three media houses.

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