Unhappy Valentine’s Day

It truly was the Valentine’s Day massacre. It is unclear whether any of the officers from the Communications Authority of Kenya, or the well-armed police who accompanied them, was dressed in red, but their vision was certainly coloured scarlet as they raided the Limuru transmission sites and carted away equipment belonging to the Nation Media Group, the Standard Group and Royal Media Services.

The raids on the three media houses are the denouement – or at least the end of one phase – of the digital migration efforts which, in Kenya, have degenerated into the realm of circus and farce. What was supposed to be a simple process of changing technologies has been caught up in legal battles and ended up with confused customers. Above all, however, is the fact that the mess has been caused by ineffective, and oftentimes petulant, regulation. The story of digital migration – how it started, how it has (not) been carried out, and how it will end – is an object lesson on how an uncertain regulator can end up messing up the very industry it is tasked with regulating.

First things first – I need to declare that I have a dog in this fight. I work for NTV (my business card says that I’m the Business Editor for the channel, although I’m often busy moonlighting for this column). Thus, I do have a direct interest in the outcome of the digital migration process. My livelihood depends on it. 

Digital migration is (or was supposed to be) an unremarkable process. It is a simple technology change, and one that was supposed to be largely invisible to television viewers, except for the requirement that they buy set top boxes. The process of migration was launched with razzmatazz (or at least with what passes for razzmatazz at the parking lot of the KBC) by President Kibaki in December 2010.

It was bungled almost immediately afterwards. First, the budgetary allocation by the government for the process was woefully inadequate. A process that required 3 billion shillings (for everything from equipment acquisition, to consumer education) was only allocated around 650 million shillings.

In addition, the digital migration process was launched with what was soon to be obsolete technology (named Digital Video Broadcasting-Terrestrial, or DVB-T, if you must know). Within less than a year, the government announced that Kenya would be migrating to DVB-T2 technology, which offered better bang for the digital buck, and would be relevant for years to come. Nothing wrong with that, you might say. That is if, however, you were not one of the consumers who rushed out to buy a set top box. These early adopters were left in the lurch and out of pocket, and with useless digital boxes crowding their television cabinets.

In addition, since the budget for consumer education was nowhere near adequate, confusion reigned about which television model was digital and which wasn’t, and whether if one bought a brand new set, they would have to buy a set top box.

At the same time, other rules kept chopping and changing. The original plan was to separate content providers (such as my employer) from signal distributors. Each entity would be left to do what it did best, and the country would march into a bright digital dawn.

Again, though, this became a confused mess. The rules were changed, and content creators were allowed to distribute their own signals. After the three leading broadcasters were knocked out on a technicality, the licences for signal distribution were then issued to a Chinese-fronted company, Pan Africa Network Group, and Signet, a subsidiary of the Kenya Broadcasting Corporation.

What has followed ever since has led to the events of Saturday afternoon. The three companies applied for a licence to broadcast, which they were, grudgingly, granted. This was, however, under such impossible conditions (they had to design, order, manufacture, ship, market and sell broadcast equipment and set top boxes in under two weeks) that they understandably went back to court for a more realistic deadline.

All this time, the PR war has been a vicious one, with the Communications Authority and the government seeking to paint the companies as roadblocks to the migration process. The companies, on their part, say that they support migration, but not under such unrealistic conditions that they become enablers in the cannibalisation of their own business.

This is where a prudent regulator should have played their part well. Digital broadcasting (when it eventually does happen) is an unalloyed good. Clearer channels, more opportunity and advancement in technology. However, a regulator who seems hell-bent on negating the billions of shillings in investment over decades can only be looked at with suspicion.

Digital migration was never supposed to be a zero-sum game, with new investors and companies coming in at the expense of existing ones. The pie was supposed to grow, with new talent, new viewers and new advertisers joining the party.

The Valentine’s Day raids, however, have put paid to any remaining goodwill. The regulator has dug trenches, with the government by its side, and is lobbing vicious salvos at the three media houses. They, in turn, have had to retreat into a defensive crouch, working around the clock to defend hard-won liberties and investments.


And the viewer, meanwhile, sits by, wondering where all the love, and all the television, went on Valentine’s Day.

Also published in the Business Daily on February 17 2015 at http://www.businessdailyafrica.com/Opinion-and-Analysis/-/539548/2625506/-/14g7wcfz/-/index.html

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