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<p class="MsoNormal"><span style="color:#1F497D">Listers,</span><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""><o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">The Commission yesterday revised the digital Broadcast<span style="color:#1F497D">
</span>signal distribution fees<span style="color:#1F497D"> </span>with a view to facilitating a smooth transition to digital TV broadcasting in Kenya. Below is the press release issued yesterday on the same for your information:<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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</v:shapetype><v:shape id="_x0000_s1026" type="#_x0000_t75" alt=" P R E S S R E L E A S E" style='position:absolute;margin-left:112.25pt;margin-top:10.3pt;width:372pt;height:37.7pt;z-index:251659264;visibility:visible;mso-width-percent:0;mso-height-percent:0;mso-wrap-distance-left:2.88pt;mso-wrap-distance-top:2.88pt;mso-wrap-distance-right:2.88pt;mso-wrap-distance-bottom:2.88pt;mso-position-horizontal:absolute;mso-position-horizontal-relative:text;mso-position-vertical:absolute;mso-position-vertical-relative:text;mso-width-percent:0;mso-height-percent:0;mso-width-relative:page;mso-height-relative:page'>
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</v:shape><![endif]--><![if !vml]><span style="mso-ignore:vglayout;position:absolute;z-index:251659264;margin-left:150px;margin-top:14px;width:496px;height:50px"><img width="496" height="50" src="cid:image006.png@01CEFB0D.36919420" alt=" P R E S S R E L E A S E" v:shapes="_x0000_s1026"></span><![endif]><span lang="EN-GB" style="font-size:10.0pt;font-family:"Arial","sans-serif";color:black;text-transform:uppercase"><img width="97" height="126" id="_x0000_i1025" src="cid:image007.jpg@01CEFB0D.36919420"></span><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b><span style="font-size:12.0pt">16<sup>th</sup> December 2013
<o:p></o:p></span></b></p>
<p class="MsoNormal"><b><span style="font-size:12.0pt"><o:p> </o:p></span></b></p>
<div style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in">
<p class="MsoNormal"><b><span style="font-size:12.0pt">CCK reviews digital broadcast signal distribution charges downwards<o:p></o:p></span></b></p>
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<p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt">The Communications Commission of Kenya has reviewed downwards tariffs for digital signal distribution in a move geared towards facilitating a smooth migration from analogue to digital
television broadcasting in the country.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt">According to
<i>Determination No. 1 of 2013 on Cost-Based Terrestrial Digital Broadcast Signal Distribution</i>
<i>Tariff</i> dated 16th December 2013, Digital Signal Distributors shall charge broadcasters (also known as Content Service Providers) at
<b>KES. 125,990 per Megabit for Nairobi</b> and <b>KES.93,202.75 per Megabit for other sites</b> in Kenya.
<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt">The new tariffs take effect from today.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt">Before the review, the Pan-Africa Network Group (PANG) had proposed to charge broadcasters a monthly signal distribution fee of KES 1,135,312.50 per channel in Nairobi. Kenya Broadcasting
Corporation-owned SIGNET on the other hand had proposed to charge KES 248,141 per mega bit (Mbit) for signal distribution services within Nairobi.
<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt">For other sites in Kenya, SIGNET had proposed to charge a uniform signal distribution fee of KES248,141.45 per mega bit, while PANG had proposed to charge a flat monthly fee of KES.378,437.50
for signal distribution services in Mombasa, Kisumu, Nyeri, Eldoret, Kakamega, Kisii and Meru. For Malindi, Webuye, Garissa, Narok, Kericho, Isiolo, Kitale, Bungoma, Embu, Voi and other regions, PANG had proposed to charge broadcasters a flat monthly fee
of KES.126,145.83.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt">In the determination, CCK further requires the two Digital Signal Distributors – Pan African Network Group (PANG) and Signet, to publish a
<b>Reference Offer</b> three months from today in order to ensure that there is access, transparency and non-discrimination on the terrestrial signal distribution platform.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt">According to the determination, digital signal distributors are also expected to prepare
<b>separate accounts</b> for each commercial subsidiary including the appropriate allocation of central overheads within six months from today.
<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt">In arriving at the afore-cited tariffs, CCK adopted a consultative approach where the signal distributors were involved.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt">Issued by<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><b><span style="font-size:12.0pt">Mutua Muthusi<o:p></o:p></span></b></p>
<p class="MsoNormal" style="text-align:justify"><b><u><span style="font-size:12.0pt">Director - Consumer & Public Affairs<o:p></o:p></span></u></b></p>
<p class="MsoNormal" style="text-align:justify"><b><u><span style="font-size:12.0pt">For: DIRECTOR GENERAL
<o:p></o:p></span></u></b></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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