Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
According to CA, the advisor took into account market developments; it also provided a comparative analysis of the current situation in line with international best practices/FILE

Kenya

Broadcasters to benefit if CA okays price cut in signal distribution

According to CA, the advisor took into account market developments; it also provided a comparative analysis of the current situation in line with international best practices/FILE

According to CA, the advisor took into account market developments; it also provided a comparative analysis of the current situation in line with international best practices/FILE

NAIROBI, Kenya, Dec 9 – Broadcasters in the country are set to benefit from a decision by Communications Authority of Kenya to review prices charged by Broadcast Signal Distributors (BSD).

In a bid to host more broadcasters, CA’s proposed measures will lower prices by as much as 30 percent from the current prices.

In a study commissioned by the authority earlier this year, CA proposed that content producers in Nairobi be charged a maximum of Sh88,000 per megabit per month, down from a current rate of Sh128,000 and that those in other major towns pay Sh39,000.

To get the findings, the authority commissioned Analysis Mason, a media, telecoms and technology advisor, to review the current broadcast signal cost model in the country.

According to CA, the advisor took into account market developments; it also provided a comparative analysis of the current situation in line with international best practices.

“Analysis Mason used available institutional, regulatory and financial information, and through a costing exercise, proposed a costs and prices of signal distribution to be charged by BSDs,” says the authority.

If it is adopted, CA has stated that the review will be undertaken periodically and is expected to enhance a conducive and enabling environment that supports growth and vibrancy of the industry.

According to analysts from Standard Investment Bank, the downward review on price will also mean greater pressure on large broadcasters who will have to launch much more specialist channels in order to compete effectively for niche market segments.

A Similar move by the authority includes that of 2013 when a cost-study it had done led to a downward review of tariffs for digital signal distribution. This was done in a bid to facilitate smooth transition from analogue to digital broadcasting.

Approval of the price review is however awaiting further internal consultation by the authority before being approved.

Advertisement. Scroll to continue reading.
Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...