[kictanet] BLOW AS AUTHORITY WITHDRAWS MEDIA OWNERS LICENSE, FREQUENCIES REPOSSESSED, DECODERS BANNED

[James Mbugua]

Fed up with three media houses that have delayed the digital migration
process and abused their outlets to slander rivals GOtv and Startimes, the
Communications Authority has cracked the whip; withdrawn the license of the
three media houses to transmit digitally, halted the issuance of a digital
signal distribution license to them and asked KRA to prohibit any
importation of set top boxes by the three media houses....read more here

http://nairobitech.blogspot.com/2015/01/authority-repossesses-ntvctvktn.html

Below is the full statement issued by CAK director-general Francis Wangusi

PRESS STATEMENT BY MR. FRANCIS WANGUSI, DIRECTOR GENERAL, COMMUNICATIONS
AUTHORITY OF KENYA (CA), ON THE ADVERTISEMENT BY NATION MEDIA GROUP,
STANDARD GROUP AND ROYAL MEDIA SERVICES, RELATING TO MEDIA TRANSMISSION
SERVICES
21ST JANUARY 2015
It has come to the attention of the Authority that three media houses,
namely Nation Media Group Limited, Standard Group Limited and Royal Media
Group Limited have jointly been running a misleading advertisement on
Television and Radio since Friday 16th January 2015. The said advertisement
purports that Startimes and GOtv are illegally carrying their content
thereby infringing on copyright and neighbouring rights. The advertisement
goes farther to instruct consumers not to purchase Startimes and GOtv
pay-tv set-top boxes to watch CITIZEN Television, NTV, KTN and QTV. In
addition, the advertisement allege that the three media houses are the
exclusive vendors of Free-To-Air set-top-boxes that can enable the public
to view their channels
The Authority is gravely concerned by the misleading content in the
advertisement and wishes to advise the industry and the general public as
follows:
1. The advertisement by the three media houses is misleading to the public,
is offensive to the market. It is equally in gross violation of the legal
and regulatory framework governing the sector;
2. The tone of the advertisement, its content and timing is intended to
cause confusion and disrupt the digital migration programme;
3. The digital migration framework allows for the distribution of the
‘Free-to-Air’ signals on the digital platform under the “must-carry
principle” . This was supported by the ruling of the Supreme Court of Kenya
in September 2014 . It allowed for the availability of Free-to-Air channels
to the public through all set-top-boxes (FTA and Pay TV). The advertisement
dissuading consumers from purchasing set-top-boxes from other suppliers
approved by the Authority is therefore misleading to the public and
portrays anti-competitive conduct by the three media houses. Consumers need
not be constrained to purchase a specific set top box to view the content
of the three broadcasters whose content is Free-to Air;
4. The Authority has type-approved more than 65 set top boxes which are
available in the market today. GOTV and Startimes set top boxes are duly
type-approved by the Authority and are therefore authentic decoders in the
local market authorized to carry the Free-to-Air Channels of the three
media houses under the auspices of the “Must Carry Principle;
5. The sale of set top boxes in Kenya is a free market. Consumers can
purchase type approved set top boxes from any vendor registered by the
Authority. The full list of approved set top boxes and registered vendors
can be freely accessed on the Authority’s website;
6. The Authority has neither received any application nor granted any
type-approval of any set top box model from the three broadcasters,
individually or collectively, for sale in Kenya. It is therefore illegal to
purport to advertise set-top-boxes that have not been type-approved by the
Authority;
7. The Authority has also received a formal complaint from Gotv and
Startimes that the three media houses have refused to Air their
digital-migration related advertisements which is potentially an
anti-competitive conduct prohibited by law. While this complaint has not
been investigated, the Authority notes with concern that it has itself been
a victim of such refusal to carry advertisements both in the electronic and
print media owned by the three media houses, yet the advertisements are
aimed at educating the public on digital migration.
In view of these gross violations by the three media houses as enumerated
above, the Authority has decided to take the following administrative
actions:
1. Withdraw the temporary authorization granted to the consortium by the
three media houses (under the consortium identified as Africa Digital
Network). Subsequently the Authority shall reposes the frequency spectrum
resources allocated with immediate effect;
2. Decline to continue with the process of issuance of a Network Facilities
Provider Tier 2 License for self-provisioning to the three media houses,
pursuant to Gazette Notice Number 9088 dated 19th December 2014. This is on
account of the above violations of the legal and regulatory framework. The
process shall therefore await the ruling and determination of the
Competition Authority of Kenya and the Board of the Communications
Authority of Kenya on the violations by the three media houses.
3. Liaise with the Kenya Revenue Authority (KRA) and Kenya Bureau of
Standards (KeBS) to bar the importation of set top boxes by the three media
houses considering the purported set top boxes are not type-approved by the
Authority; and
4. Invite the Competition Authority of Kenya to investigate the cartel-like
behavior and anti-competitive conduct and take appropriate regulatory
remedies.
We further wish to inform the public that registered vendors have in stock
different models of approved Free-to-air and Pay-TV set top boxes that are
readily available locally for purchase. More than 1.2 million set top boxes
have been purchased since migration in Kenya began. At the moment, the
market has more than 1.5 million set top boxes in stock. As we progress
into the second phase of the analogue switch-off in the country, consumers
are encouraged to purchase set top boxes of their choice ahead of
switch-off in order to enjoy digital television.
The withdrawal of the temporary self-provisioning authorization granted to
the consortium and the repossession of the the allocated resources does not
in any way prejudice the availability of the services of the three
broadcasters. The broadcasters are at liberty to avail their content on the
digital platform through the existing licensed Broadcast Signal
Distributors.
Let me reiterate that the Authority does not condone contraventions of the
Act by any of its licencees. The Authority will continue to execute its
regulatory mandate with a view to ensure successful migration of Kenyans
from the analogue to the digital platforms and ultimately for the growth of
the ICT sector in Kenya.
Issued on 21st January 2015
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