TV switch-off will cripple businesses

Local broadcasters face a potential shutdown in three weeks if the government pushes ahead with the December 13 deadline for digital migration in Nairobi.

Owners of the three main independent television stations, through their lawyer Paul Muite, say that 90 per cent of the viewers will be staring at blank screens should the government proceed with the planned switch-off in three weeks.

In a law suit filed on Friday, the Nation Media Group (NMG), Royal Media Services and Standard Group argue that the government has not instituted proper and adequate measures to ensure the availability of universal set-top boxes for receiving digital transmissions countrywide.

“If they switch off on December 13, then only 10 per cent of the viewers will be able to watch their TVs,” said Mr Muite Saturday.

“As we all know, TV stations make their money from advertisements and advertisers spend their money because they want to reach a large audience. If this is not guaranteed, it means no advertisements, which means no revenue. The journalists will be told to pack up and go. We are staring at a catastrophe.”

NTV, Citizen and KTN say they collectively have 1,905 employees. The media owners argue that to date, the government has only distributed a paltry 170,000 set-top boxes, 90 per cent of which are for pay television services. They say the country has eight million TV sets.

A Gazette notice by Information and Communication Technology Secretary Fred Matiang’i outlines a phased migration with Nairobi and its environs scheduled to start on December 13.

Mombasa, Malindi, Nyeri, Meru, Kisumu, Webuye, Kisii, Nakuru and Eldoret regions will migrate on March 30, 2014. The rest of the country will be switched off on June 30 next year to beat the June 17, 2015 global deadline that was set by the International Telecommunications Union.

But, according to the three local broadcasters that command a combined audience of 85 per cent, the deadline is not cast in stone. “The government has ignored a crucial component of the 2006 Regional Radio Communications Conference resolution that allows an additional five years beyond the 2015 cut-off,” said the three in a petition filed in court by lawyer Mansur Issa.

The companies also accuse the Communications Commission of Kenya of authorising Signet Kenya, Star Times Media Limited, Pan Africa Network Group and GOTV to transmit their programmes without their consent. The matter will be heard on Tuesday. The broadcasters are also taking issue with the failure by government to award them digital signal distribution licences, terming it discriminatory.

They are expected to pay Signet or Pan Africa Network Group for their programmes to be aired. The latter is a Chinese-owned company while Signet is a subsidiary of the Kenya Broadcasting Corporation.

“Why are foreigners who have not made major investments in infrastructure being given preference over local firms?” asked Mr Muite.

NTV, KTN and Citizen have invested a total of Sh40 billion in infrastructure and say this will go to waste if they are forced to channel their stations through the Pan Africa Network Group or Signet.

Mr Muite says the awarding of the licences was not above board as a consortium by the Nation Group and Royal was denied a licence allegedly because of failing to pay a bond of Sh500,000.

“This shows there was something fishy going on. In fact, the tender documents did not require the bond. NMG and RMS could have paid that in cash,” he said.