CAK Reduces Digital Broadcast Signal Distribution Fees

The Communication Authority of Kenya (CAK) has lowered broadcast signal distribution charges by 60 percent with effect from December.

“New BSD rates take effect from 1st December 2016 with broadcasters within Nairobi paying Sh89, 545 per megabit in 2016, Sh91, 753 in 2017,” said Mr. Francis Wangusi, Director General CAK.

Broadcasters in other major towns will this year pay Sh37, 311, Sh38, 306 in 2017 and Sh39, 074 in 2018.

This is a relief to new broadcasters who have been afraid to enter the Kenyan market and for those who were on the verge of closure due to the high cost of charges.

This is after a review study which recommended Broadcast Signal Distributors (BSD) charges should not exceed certain recommended price cap.

Signal distribution cost in other major towns will be lower by 60 per cent to KSh37, 311 from the previous Sh93, 202.

Television broadcasters will pay Ksh32,961 monthly fees for signal distribution within remote areas.

In 2013, CAK reduced tariffs for digital signal distribution to facilitate a smooth migration from analogue to digital television broadcasting in the country.

The latest review will spur growth to the industry after the digital migration process.

“The reduction of the monthly fees is a big win for new broadcasters on digital platform who have complained about expensive distribution costs,” said Wangusi.

The new BSD framework consists of two components: a price cap for broadcasting charges on a new cost model, and Reference Access Offer (RAO).

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