Regulator claims media firms were offered licences
TV sets currently in market will need a set-top box to decode digital signals. PHOTO | FILE
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The Communications Authority of Kenya (CA) says NMG, Royal Media lost appeal to distribute signals.
The State was in 2011 asked to give a digital signal distribution licence to two leading media houses, the industry regulator claimed at the beginning of a Supreme Court hearing on Wednesday.
Communications Authority of Kenya (CA) said the Information ministry action would have benefited Nation Media Group and Royal Media Services.
CA is challenging an Appeal Court decision to set aside two distribution signals. The hearing of the dispute kicked off before a Bench of all seven Supreme Court judges and is set to continue through Friday.
CA, through lawyer Wambua Kilonzo, said the two companies, through a consortium, unsuccessfully bid to distribute signals following the digital migration.
Mr Kilonzo told the Court the consortium, National Signal Networks (NSW), had its bid turned down on technical reasons but Chinese firm Pan African Group was successful.
Signet, a subsidiary of national broadcaster KBC was also awarded a distribution licence as per the constitutional provision for a State-owned distributor.
“NSW went to the Public Procurement Oversight Authority complaining about the process, but on July 19 2011 threw out the appeal. The bid from PAG was successful and they were awarded the licence,” said Mr Kilonzo.
It was the Information PS who tried to intervene and secure a third licence to NSW.
“The PS asked the Government to consider giving a third licence to NSW on condition that any broadcaster would be free to use the network on the same terms as Signet and PAG,” said Mr Kilonzo.
CA accused the two media houses alongside the Standard Media Group of fighting the creation of a level-playing field which it claimed will be brought about by the digital migration.
Mr Kilonzo told the Court that opposition against the digital migration only came up after the top players in the industry realised the digital migration would give all players equal access to the public.
The watchdog faulted the media houses for not raising concern over the analogue switch-off date during consultations on digital transition, where they were represented.
The Attorney-General will be heard today and the three media houses on Friday.
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