The Digital Migration, Will the Average Kenyan Be Left Behind?

The government recently announced that residents in Nairobi and its environs have until 31st December 2012 to purchase approved DVB-T2 set top boxes or risk losing TV signals come 1st January 2012. Bearing in mind that the universal switch off deadline is 2015, the government says that any delays in switching off the analogue signals is doing more harm to the economy as it needs to free the frequencies to be used for other purposes. As it currently stands, KES 2 billion has been invested to roll out the digital infrastructure.

Consumer lobby group, Cofek, filed a case under certificate of urgency seeking orders to prevent the government from effecting the December 31st deadline early this week. The driving force behind Cofek’s move to court is the ill-timed deadline, given the fact that  consumers have to bear with other demands such as Christmas spending and school fees come January.

The high cost of acquiring set top boxes is another reason identified for opposing the December 31st analogue switch off deadline.

The government recently released a list of locally available type approved DVB-T2 set top boxes and integrated digital TV. A spot check by pesatalk.com has revealed that prices for these set top boxes are relatively high bearing in mind the ever rising cost of living.

Free to air set top boxes cost between KES 5,300 to KES 6,500 while pay TV set top boxes currently cost between KES 1,999 to KES 4,899. Check out the prices below which came into force after the government waived off duty on set top boxes:

In as much as pay TV set top boxes cost relatively lower than free to air set top boxes, they cost more in the long run due to their monthly subscription rates. Below are StarTimes and GOtv monthly subscription rates:

[caption id="attachment_27301" align="alignnone" width="652"] Compiled by pesatalk.com[/caption]

The high costs of food, housing and transport, coupled with the introduction of monthly premiums to a pay TV service provider, would seem expensive for the average Kenyan.

Even government approved integrated digital TVs that come with inbuilt digital signal receivers cost more than what the average local consumer can afford. A 32 inch Samsung Digital TV costs KES 59,995 while a 46 inch Samsung Digital TV costs KES 129,995, prices that are way beyond the reach of most Kenyans.

[caption id="attachment_27302" align="alignnone" width="653"] Compiled by pesatalk.com[/caption]

Will the average Kenyan be left behind in the digital migration?

Bearing in mind that Christmas spending and school fees payments will top most people's list in January, coupled with the high cost of acquiring set top boxes and integrated digital TV’s, there is a high likelihood that the average consumer won’t meet the December 31st deadline.

 

1
...

Abacus is the result of over 10 years market experience and is licensed as a data vendor by the Nairobi Securities Exchange

Contact Us

Email: hello@abacus.co.ke
Tel: +254 792 753 774