Broadcasters to pay higher frequency fees from July 2013

bannerJust weeks after weeks after the government, through the ICT Minister Dr Fred Matiangi, announced that it would license a third signal distribution license as demanded by the country’s broadcasters, industry regulator has today announced that it would review frequency fees from July 2013.

In a statement issued today, CCK Director General Francis Wangusi said that beginning July, broadcasters Broadcasters with more than one frequency per broadcast spot or site would pay higher fees for the spectrum.

Below is the complete statement:

“Broadcasters with more than one frequency per broadcast spot or site will from next month pay higher fees for the spectrum. 

The Commission today revised the broadcasting frequency fees in an attempt to address the existing disparities in the distribution and use of broadcasting spectrum in the country.

The new charging methodology shall ensure fair distribution of broadcasting frequencies, and promote competition in the sub-sector.  In addition, the methodology will enhance plurality and diversity of views and opinions as envisaged in the ICT Sector Policy Guidelines and the Kenya Information and Communications Act, CAP 411A.

The new charges will be based on the following formula: 

New frequency fee payable per site = (2n-1) x current fee.   Using this formula, the fee payable per site is as follows:

 

No. of Frequencies Zone A (High Congestion Zone) Zone B (Low Congestion Zone)
Broadcaster with 1 frequency in one site FM: KShs. 130,000/= p.a.

TV: KShs. 360,000/= p.a.

FM: KShs. 65,000/= p.a.

TV: KShs. 180,000/= p.a.

Broadcaster with 2 frequencies in one site FM: KShs. 390,000/= p.a.

TV: KShs. 1,080,000/= p.a.

FM: KShs. 195,000/= p.a. 

TV: KShs. 540,000/= p.a.  

Broadcaster with 3 frequencies in one site FM: KShs. 910,000/= p.a.

TV: KShs. 2,520,000/= p.a.

FM: KShs. 455,000/= p.a.

TV: KShs. 1,260,000/= p.a.

Broadcaster with 4 frequencies in one site FM: KShs. 1,950,000/= p.a.

TV: KShs. 5,400,000/= p.a.

FM: KShs. 975,000/= p.a.

TV: KShs. 2,700,000/= p.a.

Broadcaster with 5 frequencies in one site FM: KShs. 4,030,000/= p.a.

TV: KShs. 11,160,000/= p.a.

FM: KShs. 2,015,000/= p.a.

TV: KShs. 5,580,000/= p.a.

Broadcaster with 6 frequencies in one site FM: KShs. 8,190,000/= p.a.

TV: KShs. 22,680,000/= p.a.

FM: KShs. 4,095,000/= p.a.

TV: KShs. 11,340,000/= p.a.

Broadcaster with 7 frequencies in one site FM: KShs. 16,510,000/= p.a.

TV: KShs. 45,720,000/= p.a.

FM: KShs. 8,255,000/= p.a.

TV: KShs. 22,860,000/= p.a.

Broadcaster with 8 frequencies in one site FM: KShs. 33,150,000/= p.a.

TV: KShs. 91,800,000/= p.a.

FM: KShs. 16,575,000/= p.a.

TV: KShs. 45,900,000/= p.a.

Broadcaster with 9 frequencies in one site FM: KShs.66,430,000 p.a.

TV: KShs. 183,960,000 p.a

FM: KShs.33,215 ,000/= p.a

TV: KShs. 91,930,000/= p.a.

Broadcaster with 10 frequencies in one site FM: KShs.132,990,000 p.a.

TV: KShs. 368, 280,000 p.a. 

FM: KShs.66,495 ,000/= p.a.

TV: KShs. 184, 140,000/= p.a.

The new charges are effective from 1st July 2013.  A description of the frequency charging Zones A and B is provided on our website at here http://www.cck.go.ke/licensing/spectrum/fees.html

Frequencies are national resources that should be distributed fairly and equitably.

wangusi_sign

Francis W. Wangusi

DIRECTOR GENERAL”

Overall, the upward spectrum fee review is expected to create a dis-incentive for broadcasters to have multiple frequencies in one spot.  This will free spectrum for assignment to new entrants (for FM broadcasters). In addition, in the era of digital TV broadcasting, entrants into this market do not require frequencies any longer but space/channels on the digital platform. Once the cases before courts are adjudicated, CCK will provide clear direction on the licensing framework.