Corporate News
By OKUTTAH MARk
In Summary
- The firm has started the search for local broadband providers that will carry its content via fibre optic cables and copper wire.
- The shift in consumer preferences that has seen rise in Internet use to access home entertainment could also be one of the reasons behind the new DStv strategy.
Pay-TV provider MultiChoice Africa, which owns the
DStv brand, is set to deliver its content through cables, a move
analysts say will address high upfront costs and signal disruptions seen
in the current satellite transmission system.
The firm has started the search for local broadband
providers that will carry its content via fibre optic cables and copper
wire.
While the satellite technology is ideal for faster
rollout to the mass market, it experiences weak signals during rainy
seasons and requires customers to spend thousands of shillings on
equipment.
The cost of the equipment, including a satellite
dish and decoder, ranges from Sh14,000 to Sh26,000 depending on their
technical specifications.
“We suspect the strategy aims to reduce the
connection fee related to equipment costs and make services more
efficient as weather normally disrupts satellite delivered services,”
Standard Investment Bank said in a statement.
The shift in consumer preferences that has seen
rise in Internet use to access home entertainment could also be one of
the reasons behind the new DStv strategy.
Fixed fibre optics subscriptions in the country
stood at 69,377 in the first quarter, up from 55,007 in the same period
last year, according to the Communications Authority of Kenya (CA).
The statistics show the number of those linked to
copper lines stood at 12,547 while those accessing the Internet through
satellite connectivity were only 700. This signals that these two
technologies that were popular a decade ago are losing out to fixed
fibre connectivity.
DStv, which has more than 200,000 subscribers on
satellite, now wants to use a hybrid technology that will see it add the
option of copper wire, coaxial cable or fibre optic cables.
The move comes at a time when international content
providers such as Netflix and Hulu are targeting local audiences by
streaming their content through the Internet, bringing new competition
in the pay-TV segment.
“MultiChoice Africa … would like to source for one
or two agents to distribute its bouquets on their wired networks in
Kenya and to provide related subscriber management services,” reads part
of the company’s request for proposal.
MultiChoice also indicated that the agents must
have their own set-top boxes or decoders and content encryption system,
meaning that it needs an assurance of safety of its content to avoid
piracy.
“The set-top box specification and encryption
system other than Irdeto, may be subjected to validation by MultiChoice
Africa,” the pay television firm added.
DStv’s rival Zuku, owned by Wananchi Group, has
invested in satellite, coaxial cable and has its own set-top-boxes
through which its subscribers’ access content.
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