New CCK policy to halve price of digital TV device

The price of set-top boxes is set to fall by at least 45 per cent after the industry regulator revised minimum specifications, which allows for importation of equipment that exclusively support free-to-air (FTA) channels.

Also read: The looming digital switch

The Communications Commission of Kenya (CCK) order means cheaper gadgets for converting analogue television signals to digital format will now be available in the market.

Previously, the government only allowed the importation of set-top boxes on the Digital Video Broadcast Technology 2 (DVB-T2) that could access both pay and free-to-air channels whether or not the consumer subscribes to pay- TV.

It is this “conditional access” feature, a technology allowing pay TV broadcasters to control what viewers watch and one whose installation cost is estimated at about $40 (Sh3,360), that has been removed.

This now allows vendors to import two types of set-top boxes — the less-advanced gadget only accessing FTA channels like NTV, KTN, Citizen and K24 and the costlier one that allows airing of free and premium channels.

“The minimum specifications for DVB-T2 set-top boxes have been revised making the conditional access feature optional for DVB-T2 set top boxes intended for use to receive Free-to-Air TV content,” CCK said in a public notice to vendors and consumers.

“However, the set-top boxes intended for pay/subscription TV, conditional access still remains a mandatory feature.”

Dealers’ have welcomed the policy change saying they expect the cost of exclusive FTA boxes to go down from the current Sh8,000 a gadget to about Sh4,600 once the next batch of imports arrive.

Samuel Kabui, the secretary-general of Digital Decoders Association of Kenya, has in the past called upon the CCK to revise the requirement arguing conditional access rule was restrictive and made the equipment costly for the average Kenyan.

“People who cannot afford pay- TV were being forced to buy costly high-end equipment despite the fact that they were not interested in the functionality or could not afford monthly subscriptions,” said Mr Kabui in a telephone interview with the Business Daily.

Information PS Bitange Ndemo said that the cost of the converters could go down to as low as Sh2,000 — a price that the Business Daily independently confirmed from online retailers.

Moreover, pay television providers — StarTimes and GOtv— are currently selling their digital terrestrial set-top boxes at Sh2,999 and Sh3,500 respectively.

The PS added that the CCK move would serve as a much-needed boost to the digital migration exercise which is supposed to be complete by the end of the year.

“The new rules will enable importers bring in cheap converters that are affordable to most Kenyans and this will go a long way in ensuring that the migration is successful,” said Dr Ndemo.

“Most of us just need to convert the signal and watch free-to-air instead of assuming that we need conditional access.”

The Regional Radio Communication Conference held in Geneva in 2006 set a 2015 deadline for migration to digital TV, but the five East African Community members set their deadline at December.

Apart from larger content generation, the switch is expected to expand opportunities for investors in digital terrestrial TV, broadcast mobile TV, commercial wireless broadband services and help in disaster relief.

Consumers are expected to benefit from clear pictures and competition among the providers for affordable and better quality of programmes.

Nairobi, Mombasa and Kisumu have already been covered with the digital signal that is being provided by Signet and Pan African Group.

A CCK study showed that out of the four million households with TV sets, 1.6 million (40 per cent) own black and white ones bought at about Sh4,000 and may not afford or find value in investing in gadgets required for digital migration.

CCK director-general Francis Wangusi earlier said that the greatest barrier to the success of digital migration plan would be the access to affordable set-top boxes.
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