The Communications Authority of Kenya (CA) intends to assess the monthly signal distribution costs paid by radio and television broadcasters to boost the quality of broadcasting services offered throughout the country.
Broadcast signal distribution (BSD) fees would be examined in the context of recent market developments, such as enhanced efficiency brought on by technical advances, as stated by the Communications Authority of Kenya (CA).
“The overall scope of this project is to assess competition in the broadcasting sub-sector and review the pricing and access framework applicable to all broadcasters (content providers),” the regulator said.
The assessment, which will take into account all technological improvements and the existing developmental framework, will be the first-rate review led by Ezra Chiloba since January 2018.
Broadcasters on the digital platform who have previously complained about high distribution costs levied by the two national BSD distributors, Pan Africa Network Group (PANG) and Signet, which the Kenya Broadcasting Corporation controls, would benefit greatly from a new cut in the monthly prices.
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“The overall scope of this project is to assess competition in the broadcasting sub-sector and review the pricing and access framework applicable to all broadcasters (content providers),” CA stated.
The Authority added that the charges were maintained at the same level for four years so they could analyse the market and decide on the forthcoming tariff in a well-informed manner.
In 2016, the rates for distribution within the Nairobi Metropolitan Region were fixed at Ksh89,545, a 29 per cent decrease from Ksh125,990.
CA currently claims that technological advancements could have greatly reduced BSD costs and that a revision of present pricing is required to transfer these gains to broadcasters.
The broadcasting industry may have continued to face these and other factors, which “rendered the earlier remedies and BSD rates inconsistent and/or outmoded,” the report concluded.
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