ICT WeekICT entrepreneurship for social impact

Broadcast Licensing - Digital Terrestrial Television

Digital Value ChainDigital TX 1DVB T2

Digital TX 2DVB T2

TV aerial STB

ConsumerContent Service Providers

1.

2.

3.

4.

5.

Multiplex

Analog TV

IDTV

Entrepreneurial Opportunities by DTT1. Released frequencies (dividends) to facilitate new mobile/broadband services, more applications

2. Business opportunities for new media houses, content developers, STBs & IDTV vendors ; ease of set up & employment for the youth:

Opportunities cont……

.

3. Increased TV channels –new businesses

Opportunities cont….4. STB/iDTVs Vendors

STB

Issue official receipts,

warranty, after sales backup

Register as a vendor with

CA

Apply for type approval and sell only type

approved STBs Display type approval

certificate from CA

Demonstrate to consumers

how to operate STB

5. Environmental Conservation – setting up/de-commissioning sites, energy saving, healthier environs

Digital Tx site (shared infrastructure)

Analogue site (mast graveyard)

Opportunities cont….

Current Broadcasting Status

65 FTA TV channels on

DTT platform

135 Radio Stations

2 national BSDs &

3 self provisioning

BSDs

8 Pay TV Operator

s(DTH, DTT,

Cable)

LICENSING PROCESSLicence application

Preliminary check

Communications Licensing Committee

Publication in Kenya Gazette

Board Consideration

Licence offer / Board Decision communication/.

Issuance of licence.

Licensing process-about 200 days but shorter if no delays

Obligations of TV CSPs

• Responsible for the production end of the value chain

• Must observe /comply with programme code and licence conditions

• Enter into contractual arrangements with BSDs for hosting of signal

• Complaints handling• Submission to CA quarterly/annual returns• Electronic Programming Guide info

Tariffs for CSPs on BSD Platforms

• Two common carrier BSDs licensed• Broadcasters free to select DTT platform• Self provisioning BSDs restricted to carry their own

content• CA determination in 2013 capping BSD charges to

125,993.5/MB/site (NBI), 93,202.75/MB/site (other sites)

• CA to issue new determination on BSD tariffs following a study by Consultant.

• New tariffs – cost based and expected to be lower than previous charges.

• BSDs to publish reference access offer

SUMMARYMigration to DTT has opened diverse range of opportunities for entrepreneurs

Over 3m STBs sold. Consumers have over 70 approved models to choose from

Digital platform has lowered market entry barriers compared to analogue

Broadcasters need to focus on content development; compelling content will attract more eyeballs hence more revenue

DTT offers opportunities to set up niche thematic channels

Thank YouConsumer Rights in

Broadcasting Services