Corporate News
By MUGAMBI MUTEGI AND NEVILLE OTUKI
Posted Wednesday, January 21 2015 at 21:32
Posted Wednesday, January 21 2015 at 21:32
In Summary
- Nation Media Group (NMG), Royal Media Services (RMS) and Standard Group (SG) on Wednesday had their 21 frequencies cancelled following what the regulator claimed were misleading adverts by the three firms about their rivals.
- The three media houses had protested continued airing of their free-to-air programmes by the pay-TV channels.
- The Communications Authority of Kenya said the adverts had prompted it to cancel the temporary authorisation it had awarded the consortium on December 19th, a provisional licence which was awarded through an ongoing court case.
A consortium of Kenya’s three main media houses has
come out to strongly oppose Wednesday’s move by the Communications
Authority of Kenya (CA) to revoke their digital frequencies and block
the importation of their own brand of set-top boxes.
Nation Media Group (NMG), Royal Media Services (RMS) and Standard Group
(SG) on Wednesday had their 21 frequencies cancelled following what the
regulator claimed were misleading adverts by the three firms about
their rivals.
The three media houses had protested continued airing of their free-to-air programmes by the pay-TV channels.
“Subsequently the Authority shall repossess the
frequency spectrum resources allocated with immediate effect,” Francis
Wangusi, CA’s director- general, noted in a statement sent to media
houses Wednesday afternoon.
The three media firms, operating under the Africa
Digital Network (ADN) banner, have been running campaigns cautioning
Kenyans from being duped into buying Star Times and GOtv decoders that
are being marketed as free-to-air devices, but are in fact pay-TV
providers.
CA said the adverts had prompted it to cancel the
temporary authorisation it had awarded the consortium on December 19th, a
provisional licence which was awarded through an ongoing court case.
The consortium is now poking holes into the
regulator’s arguments, saying that it was not only “abdicating its duty
of being an independent body but also slowly turning the country into a
pay-TV nation.”
Mr Wilfred Kiboro, speaking on behalf of the
consortium, said that the three media houses fully stood by their
decision to air the advertisements, saying they were truthful.
“We stand by the accuracy of the advertisements as
Star Times and GOtv were and still are carrying our programmes without
our consent,” Mr Kiboro told the Business Daily.
The CA had in a November 12, 2014 letter to Star
Times and GOtv asked them to request the permission of the three media
houses before airing their programmes.
Mr Kiboro revealed that GOtv had at no point attempted to seek ADN’s consent to broadcast their channels.
Star Times, however, did put in a request but the
three media houses failed to give them the green light since the bid was
being made in “bad faith as the company was already airing our content
anyway.”
Another letter sent out by CA in the first week of
December instructed that only Kenya Broadcasting Corporation (KBC) was
regarded as a must-carry station since it was a public station funded
by taxpayers.
“Therefore, not-withstanding the Supreme Court’s
ruling about the must-carry principle, it is clear that only KBC that
falls in this category and anybody wishing to carry other free-to-air
channels must get their consent,” explained Mr Kiboro.
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