Information and Communications Minister Samuel Poghisio. Photo/FILE
Private broadcasters have won the battle for control of digital signal distribution with the government’s decision to license two more distributors in a move set to create competition in the sector.
Information minister Samuel Poghisio said the government would license two more firms to distribute the signals and compete with government controlled firm, Signet, which was formed in December 2009 as the sole distributor of digital signals during the pilot phase that ends in 2012.
The announcement comes in the wake of complaints from the Media Owners Association that the Information ministry was not transparent in issuing the digital channels, which saw them withdraw their digital content from Signet.
The two new licences will be issued on three conditions: that it will be on an open access platform; must have national coverage, and investors must show proof of resources or funding needed for putting up the national infrastructure.
“Licensing of the two distributors is not going to happen tomorrow, but we needed to bring it to the attention of interested parties on time so that they can start preparing themselves and see if they can meet the set criteria,” said Mr Poghisio.
Financial hurdles
The announcement comes at a time when Signet faces financial hurdles as the government gives priority to current pressing issues such as the drought and implementation of the new Constitution, which Mr Poghisio said will force Signet to seek private public partnership.
In December 2009, the government committed to implementing the pilot stage, which covers the Nairobi region only.
Mr Ian Fernandes, the head of Nation Media Group’s Digital Division, welcomed the move, saying it will help media companies to utilise their resources and investments such as land and masts that would have been under-used were Signet to become the sole distributor.
“By owning a signal distribution firm, media owners can have control of their budgets unlike when it’s offered through a third party,” said Mr Fernandes.
At the moment, TV and radio companies in the country operate their transmitters individually, which means they have to invest in land and generators.
The move to license two more operators not only exposes KBC’s Signet to competition, but also diminishes its hope of raising revenue through the firm.
The switch from analogue to digital broadcasting requires both broadcasters and consumers to buy new equipment that converts analogue signals to digital.
Two months ago, the government announced that only digital set top boxes that are Digital Video Broadcasting Terrestrial will be recognised.
