Here is the full statement from communications Authority;
PRESS STATEMENT BY MR. FRANCIS WANGUSI, DIRECTOR GENERAL,
COMMUNICATIONS AUTHORITY OF KENYA (CA), ON THE ADVERTISEMENT BY NATION
MEDIA GROUP, STANDARD GROUP AND ROYAL MEDIA SERVICES, RELATING TO MEDIA
TRANSMISSION SERVICES
21ST JANUARY 2015
 |
| CA
DG Francis Wangusi addressing the media |
It has come to
the attention of the Authority that three media houses, namely Nation
Media Group Limited, Standard Group Limited and Royal Media Group
Limited have jointly been running a misleading advertisement on
Television and Radio since Friday 16th January 2015. The said
advertisement purports that Startimes and GOtv are illegally carrying
their content thereby infringing on copyright and neighbouring rights.
The advertisement goes farther to instruct consumers not to purchase
Startimes and GOtv pay-tv set-top boxes to watch CITIZEN Television,
NTV, KTN and QTV. In addition, the advertisement allege that the three
media houses are the exclusive vendors of Free-To-Air set-top-boxes that
can enable the public to view their channels
The Authority is
gravely concerned by the misleading content in the advertisement and
wishes to advise the industry and the general public as follows:
1. The advertisement by the three media houses is misleading to the
public, is offensive to the market. It is equally in gross violation of
the legal and regulatory framework governing the sector;
2. The
tone of the advertisement, its content and timing is intended to cause
confusion and disrupt the digital migration programme;
3. The
digital migration framework allows for the distribution of the
‘Free-to-Air’ signals on the digital platform under the “must-carry
principle” . This was supported by the ruling of the Supreme Court of
Kenya in September 2014 . It allowed for the availability of
Free-to-Air channels to the public through all set-top-boxes (FTA and
Pay TV). The advertisement dissuading consumers from purchasing
set-top-boxes from other suppliers approved by the Authority is
therefore misleading to the public and portrays anti-competitive conduct
by the three media houses. Consumers need not be constrained to
purchase a specific set top box to view the content of the three
broadcasters whose content is Free-to Air;
4. The Authority has
type-approved more than 65 set top boxes which are available in the
market today. GOTV and Startimes set top boxes are duly type-approved by
the Authority and are therefore authentic decoders in the local market
authorized to carry the Free-to-Air Channels of the three media houses
under the auspices of the “Must Carry Principle;
5. The sale of
set top boxes in Kenya is a free market. Consumers can purchase type
approved set top boxes from any vendor registered by the Authority. The
full list of approved set top boxes and registered vendors can be freely
accessed on the Authority’s website;
6. The Authority has
neither received any application nor granted any type-approval of any
set top box model from the three broadcasters, individually or
collectively, for sale in Kenya. It is therefore illegal to purport to
advertise set-top-boxes that have not been type-approved by the
Authority;
7. The Authority has also received a formal complaint
from Gotv and Startimes that the three media houses have refused to Air
their digital-migration related advertisements which is potentially an
anti-competitive conduct prohibited by law. While this complaint has not
been investigated, the Authority notes with concern that it has itself
been a victim of such refusal to carry advertisements both in the
electronic and print media owned by the three media houses, yet the
advertisements are aimed at educating the public on digital migration.
In view of these gross violations by the three media houses as
enumerated above, the Authority has decided to take the following
administrative actions:
1. Withdraw the temporary authorization
granted to the consortium by the three media houses (under the
consortium identified as Africa Digital Network). Subsequently the
Authority shall reposes the frequency spectrum resources allocated with
immediate effect;
2. Decline to continue with the process of
issuance of a Network Facilities Provider Tier 2 License for
self-provisioning to the three media houses, pursuant to Gazette Notice
Number 9088 dated 19th December 2014. This is on account of the above
violations of the legal and regulatory framework. The process shall
therefore await the ruling and determination of the Competition
Authority of Kenya and the Board of the Communications Authority of
Kenya on the violations by the three media houses.
3. Liaise
with the Kenya Revenue Authority (KRA) and Kenya Bureau of Standards
(KeBS) to bar the importation of set top boxes by the three media houses
considering the purported set top boxes are not type-approved by the
Authority; and
4. Invite the Competition Authority of Kenya to
investigate the cartel-like behavior and anti-competitive conduct and
take appropriate regulatory remedies.
We further wish to inform
the public that registered vendors have in stock different models of
approved Free-to-air and Pay-TV set top boxes that are readily available
locally for purchase. More than 1.2 million set top boxes have been
purchased since migration in Kenya began. At the moment, the market has
more than 1.5 million set top boxes in stock. As we progress into the
second phase of the analogue switch-off in the country, consumers are
encouraged to purchase set top boxes of their choice ahead of switch-off
in order to enjoy digital television.
The withdrawal of the
temporary self-provisioning authorization granted to the consortium and
the repossession of the the allocated resources does not in any way
prejudice the availability of the services of the three broadcasters.
The broadcasters are at liberty to avail their content on the digital
platform through the existing licensed Broadcast Signal Distributors.
Let me reiterate that the Authority does not condone contraventions of
the Act by any of its licencees. The Authority will continue to execute
its regulatory mandate with a view to ensure successful migration of
Kenyans from the analogue to the digital platforms and ultimately for
the growth of the ICT sector in Kenya.