Friday, January 3, 2014

Pay TV subscribers lose rights to access public channels




Star Times decoders at a supermarket in Nyeri. Pay- TV decoders and set-top boxes are in high demand ahead of digital migration. FILE

By OKUTTAH MARK, mokuttah@ke.nationmedia.com


IN SUMMARY
The CCK has now obligated pay- TV providers to only allow subscribers two weeks of public channels after which they will be switched off if in default on the monthly fees.
Previously, under an agreement reached with the Consumer Federation of Kenya (Cofek) ahead of the initial digital migration date of December 13, pay -TV service providers were supposed to allow access to five free-to-air channels.
The relaxation of the access rule appears meant to protect the pay- TV business where service providers subsidise decoders in the hope of getting more subscribers.

Subscribers of pay television services have lost unlimited access to free-to-air channels after the Communications Commission of Kenya (CCK) relaxed a requirement that the public channels be aired throughout.

The CCK has now obligated pay- TV providers to only allow subscribers two weeks of public channels after which they will be switched off if in default on the monthly fees, stoking another round of controversy over digital migration.

“Those subscribers who fail to pay subscription on time will continue to access the must-carry free-to-air services (FTA) for a period of at least two weeks,” said CCK director-general Francis Wangusi in a communication to pay- TV subscribers seen by the Business Daily.

Previously, under an agreement reached with the Consumer Federation of Kenya (Cofek) ahead of the initial digital migration date of December 13, pay -TV service providers were supposed to allow access to five free-to-air channels — KTN, NTV, K24, Kiss and Citizen — and the national broadcaster KBC.

READ: Pay-TV subscribers get free access to public channels

Cofek now says the relaxation threatens to roll back any goodwill the digital migration had earned, especially with regard to the right to access to information, which can only be guaranteed through free-to-air channels.

“The move is outrageous as it would mean that the pay television providers are trying to force consumers into their pay bouquets by using the content from the free-to-air services, which they themselves do not pay for. This is unacceptable and we will refuse it at all costs,” said Cofek secretary- general Stephen Mutoro.

The relaxation of the access rule appears meant to protect the pay- TV business where service providers subsidise decoders in the hope of getting more subscribers.

With unlimited access to public services, the pay-TV providers would have found themselves in a situation where the subscriptions do not guarantee revenues and recovery of the roll-out costs.

“World over, Pay-TV generates income from subscription and not hardware sales, which is always heavily subsidised,” said GOtv Kenya general manager Felix Kyengo.

The move comes on the backdrop of CCK data indicating that high prices of FTA set-top boxes — the devices required for the migration from analogue to digital broadcasting — had led many to opt for the cheaper Pay-TV decoders.

No regular subscription is required for FTA set-top boxes after the initial purchase, allowing owners with the appropriate receiving equipment to view or listen to programmes.

Consumers who have opted for the pay-TV decoders from Star Times and Gotv will now need to upgrade the devices at their own cost to continue receiving public channels after the two-week window closes.

“Digital migration does not mean paying monthly fees to watch TV programmes. Consumers who may not want to subscribe to pay- TV have the option of buying type approved set-top boxes which will enable them receive free-to-air channels for free,” says CCK on its website.

READ: Analogue TV switch-off set for early 2014

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