Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Kenya

CA slashes broadcast fees by up to 60 percent

CA Director General Francis Wangusi said the cost-modelling would ensure that the tariffs arrived at give Signal Distributors a reasonable return on their investment

CA Director General Francis Wangusi said the cost-modelling would ensure that the tariffs arrived at give Signal Distributors a reasonable return on their investment./ FILE

NAIROBI, Kenya, Nov 9 – Communication Authority of Kenya (CA) has reviewed downward its monthly signal distribution fees following a study undertaken by analysts Mason, a UK consultancy firm.

The study recommends that Broadcast Signal Distributors (BSD) charges must not exceed a certain recommended price cap.

The new rates will see broadcasters pay Sh89, 545 per megabit per month for signal distribution within Nairobi and its environs down from the current Sh125, 990 translating into a 29 per cent reduction.

The cost of distributing digital signals in other major towns will come down by 60 per cent to Sh37, 311 from the previous Sh93, 202.

The television broadcasters will now pay 32,961 monthly fees for signal distribution within remote areas.

CA Director General Francis Wangusi said the cost-modelling would ensure that the tariffs arrived at give Signal Distributors a reasonable return on their investment without levying unjustifiably high charges to content developers/providers.

The monthly fee is however set to increase slightly year on year, to factor in inflation, in the subsequent three years to 2019.

The new rates became effective on 1st December2016.

Broadcasters within Nairobi will pay Sh89, 545 in per megabit for signal distribution in 2016, Sh91, 753 in 2017 and Sh93, 411 in 2018.

Those in other major towns this year  they will pay Sh37, 311, Sh38, 306 in 2017 and Sh39, 074 in 2018.

Advertisement. Scroll to continue reading.

In 2013 the CA introduced a fee of Sh125, 990 per megabit for Nairobi and its environs, and Sh93, 202.75 for other areas in Kenya, from the previous Sh1.135 million charged per channel and Sh248, 141 per megabit for signal distribution services within Nairobi.

The new BSD framework consists of two main components: a price cap for broadcasting charges on a new cost model, and a Reference Access Offer (RAO) describing the services to be provided to broadcasters by the two national BSD operators.

The study also recommended that all channels must pay all the listed charges for the services used, except that the charges for must-carry channels included in pay-TV bouquets are to be paid by the pay-TV provider rather than the channel.

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...

Headlines

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

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...

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...