Kenya’s pay TV industry lacking competition

According to the report, 30 percent of the total spectrum allocated for radio broadcasting and 23 percent of frequencies allocated for TV broadcasting in Kenya are not on air. This illustrates the existence of little competition on the pay TV industry even with more than 15 free to air TV in the country.

The report further states that the Free to Air (FTA) TV market is not fully competitive particularly in terms of viewing share.

According to CCK, this formed the abckdrop against which it saw it crucial to clarify to the industry players the maximum number of license holders it can accommodate in the DTT spectrum, and the number of frequencies each license holder can use.

Currently, Kenya has Dstv and Zuku as the only pay TV companies in the country, the third one closed shop early this year citing unhealthy competition.

The report says competition in pay TV market would increase when more firms are licensed. Although there are only two players in the pay TV market, the roll out of the digital platform is expected to bring competitiveness in the sector through increased capacity.

According to the study by Deloitte and Touche, significant grounds for pay TV growth in Kenya exist for the new entrants to expand their market share.

The study recommends that the communication regulator should continue monitoring the development of competition in the retail pay TV market.

CCK had commissioned the study late last year with a view to identifying the various markets within the country’s broadcasting industry, and establishing the levels and extent of competition in those markets. Deloitte and Touche released the report in March this year.

CCK had earlier set the country’s digital move to the DTT platform to June this year. The communication regulator however pushed the dealine to 2013 citing infrastructural inadequacies.