CAK to review cost of TV signal distribution

The Communications Authority of Kenya (CA) has initiated measures that could lower by as much as 30 per cent the current prices charged by Broadcast Signal Distributors (BSDs) to host broadcasters.

A study commissioned by the Authority proposes that content producers in Nairobi be charged a maximum of Ksh 88,000 per megabit per month, down from the current rates of Ksh.128, 000 and that those in other major towns pay Ksh.39,000.

The UK firm Analysis Mason was tasked to review the current BSD cost model in Kenya, taking into account the latest market developments as well as providing a comparative analysis of the current situation in line with international best practices.

Speaking during the release of the study findings, CA Director General Francis Wangusi said such periodic reviews enhance a conducive and enabling environment that supports growth and vibrancy of the broadcasting industry in Kenya.

“The overall objective of the 2015 study was to determine, through review of the available institutional, regulatory and financial information, and through a costing exercise, the appropriate costs and prices of signal distribution to be charged by BSDs,’’ said Wangusi.

In 2013, the Authority undertook a similar cost-study that lead to a downward review of tariffs for digital signal distribution, as a means of facilitating smooth transition to digital broadcasting.

The event was also addressed by Mr. Brown Otuya, Senior Administrative Secretary in the Ministry of ICT who commended such efforts saying they would realize the intension of Article 34 of the Constitution that calls for an enabling environment for broadcasting services in the public interest and for socio-economic and cultural development of the country.

The proposals now await further internal consultations at the Authority before they are adopted and implemented.

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