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
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.
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