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

[Mwendwa Kivuva]

Whoever said the policy makers do not have their ears at this forum
KICTANET might have to think again


On 21 January 2015 at 14:42, James Mbugua via kictanet <
kictanet at lists.kictanet.or.ke> wrote:

> 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
>



______________________
Mwendwa Kivuva, Nairobi, Kenya

"There are some men who lift the age they inhabit, till all men walk on
higher ground in that lifetime." - Maxwell Anderson
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