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

Thu Jan 22 11:09:35 EAT 2015

well said...is it monopolistic arrogance? Most decisive stance ever seen from CAK!

On Wed, Jan 21, 2015 at 6:57 PM, Eng. Wainaina Mungai via kictanet <kictanet at lists.kictanet.or.ke<mailto:kictanet at lists.kictanet.or.ke>> wrote:

With all the undesirable activity surrounding Digital Migration process in Kenya, I have been hesitant to comment. However, as a former Chairman of the Assembly of Broadcasting Operators in EACO, it has escalated to a call of duty. I start by recognising that the Director General of Communications Authority is under obligation to be the firm referee in ending the confusion caused by an unproductive confrontation between stakeholders. Even where we may differ on certain aspects of the regulatory action, the CA has today played its role in a decisive manner.

It should therefore become clear to Kenyan broadcasters that they need to develop Policy Engagement and Regulatory Compliance roles within their organisational structures. Not to rely on fire fighting or litigation. I have severally advised that not every dispute needs to end up in litigation or degenerate to level of unproductive contests were are being treated to in the latest dispute. We must seek to resolve issues in the Boardroom - not the Court Room. Litigation by broadcasters is growing into a business risk issue and, on many occassions, the outcome has proved counterproductive.

Many of these battles in Kenya's broadcasting subsector point to weakened engagement either due to inability or unwillingness to comply. For instance, why would the clearly unethical advertisements run before Type-Approval of the STB/decoder had been obtained? Why would an infomercial be obsessively and repeatedly played against PayTV operators who are potential advertising clients - business partners who also deliver Free to Air channels on their Free to Air decoders?

The media in Kenya has for long underutilised the many channels of negotiation as relates to Policy and Regulation. They have historically been absent from public forums and multistakeholder processes such as the National ICT Policy development process. The broadcasters have been late in comments to National Spectrum Policy or to the sector Regulation. They have prefered instead to engage in the singular refrain about #PressFreedom and #MuzzlingThePress even in cases where 'the shoe doesn't fit'. The immediate response by media houses to the CA decision has already began to take the same #FreedomOfthePress tone that repeatedly weakens their capacity to develop preventive mechanisms and less confrontational approaches to dispute resolution.

A win-win approach to the Digital Migration disputes would have seen Kenya lead the continent in the process. In the spirit of fair competition, it was therefore not proper for traditional Kenyan broadcasters to have celebrated the cancellation of the PANG/Startimes licence by the Court of Appeal in mid 2014. The reversal of the decision by the Supreme Court in September 2014 provided an opportunity for broadcasters to engage with the regulator (and all other stakeholders) in a win-win arrangement for their respective businesses and for the country. There are many players in the Digital TV space who hope for an end perennial disputes whose origins and motivation do not seize to confound. They include importers of set top boxes, new Digital TV stations such as 3Stones TV and many others whose views are seemingly disregarded by the Consortium of 3 broadcasters.

May this be the opening of a new chapter in Kenya's broadcasting sector - an opportunity to heal old wounds suffered under past regimes and to appreciate the value of the Boardroom as opposed to the Court Room. Let the broadcasters put aside the characteristic chest thumping and have positive engagements with the regulator and other stakeholders as was proposed by the Supreme Court.

Regards,
Eng Wainaina Mungai
SOURCE: www.wainainamungai.com<http://www.wainainamungai.com>

On 21 Jan 2015 16:22, "Consumers Federation of Kenya (COFEK) via kictanet" <kictanet at lists.kictanet.or.ke<mailto:kictanet at lists.kictanet.or.ke>> wrote:
Dear All,

Here is Cofek’s response on the CA decision: http://www.cofek.co.ke/index.php/14-news/918-cofek-response-on-the-latest-decision-by-the-communications-authority-on-digital-migration-process

We appreciate your feedback. Wish a pleasant consumer experience!

David Kedode
Program Officer
www.cofek.co.ke<http://www.cofek.co.ke>

From: kictanet [mailto:kictanet-bounces+hotline<mailto:kictanet-bounces%2Bhotline>=cofek.co.ke at lists.kictanet.or.ke<mailto:cofek.co.ke at lists.kictanet.or.ke>] On Behalf Of Dennis Kioko via kictanet
Sent: Wednesday, January 21, 2015 3:05 PM
To: The Consumers Federation of Kenya (Cofek)
Subject: Re: [kictanet] BLOW AS AUTHORITY WITHDRAWS MEDIA OWNERS LICENSE, FREQUENCIES REPOSSESSED, DECODERS BANNED

Cue, another court case and probable suspension of the announcement.
On Wed Jan 21 2015 at 14:58:10 Bernard Kioko via kictanet <kictanet at lists.kictanet.or.ke<mailto:kictanet at lists.kictanet.or.ke>> wrote:
Hehehe….** grabs popcorn **

From: kictanet [mailto:kictanet-bounces+bkioko<mailto:kictanet-bounces%2Bbkioko>=bernsoft.com at lists.kictanet.or.ke<mailto:bernsoft.com at lists.kictanet.or.ke>] On Behalf Of James Mbugua via kictanet
Sent: Wednesday, January 21, 2015 2:43 PM
To: bkioko at bernsoft.com<mailto:bkioko at bernsoft.com>
Subject: [kictanet] BLOW AS AUTHORITY WITHDRAWS MEDIA OWNERS LICENSE, FREQUENCIES REPOSSESSED, DECODERS BANNED

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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