[kictanet] CAN USF BE USED TO SUBSIDIZE FTA TRANSMISSION

[James Mbugua]

Listers,

Recently, Multichoice has indicated that it may need FTA users of its GOTV
service to pay a small annual maintenance fee to cover the cost of
transmission.

This issue has repeatedly raised hackles because, licensed pay-TV providers
like GOTV and Startimes are also required by law to carry FTA channels, the
"Must-carry" rule.

It is not clear who is supposed to cater for the cost of this transmission.
Typically, FTA analogue transmission costs were recouped through
advertising.

So it would seem that there is an issue that needs resolving here
particularly when you consider that if there is any after service required,
like a problem with the set top boxes, be it GOTV, Startimes, Safaricom etc
you return them for service to the respective platform owner.

Which raises the question, given that we have a Universal Service Fund to
which Telcos/Broadcaster/Network operators contribute to which is meant to
facilitate access to Information and Communication Technology to all, why
can't this Fund be used to subsidize access to these FTA channels to those
who wish to have them?

The CA should consider shielding viewers who want to have FTA channels from
other incidental costs by reimbursing platform owners for the cost
implications of the "Must-carry" rule.

My two cents.

JG
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