Safaricom plans to launch its own Internet-enabled digital television decoders, increasing competition for TV and data customers.
According to the company, discussions are underway with local free-to-air broadcasters to obtain consent for airing their content on the new platform.
Features and Capabilities ¶
Purchasers of the 4G-enabled Safaricom decoders will have access to video-on-demand services and downloads, in addition to creating a Wi-Fi hotspot at home with 4G speeds.
"It essentially gives you a wi-fi hotspot at home with 4G speeds. You’ll also pick up some local free-to-air stations and we are working with other partners to get more content on the box," said Safaricom CEO Bob Collymore.
The decoders will come pre-loaded with a SIM card, data bundle, and a Wi-Fi router, although the retail price has not been disclosed.
Market Impact ¶
The introduction of these decoders is expected to enable Safaricom to sell TV content and Internet as a package, competing directly with Wananchi Group, the owner of Zuku TV, which currently offers voice, Internet, and broadcast services as a package.
Data from the telecommunications industry regulator shows that only 10% of the five million households with television sets in the country have subscribed to pay-TV, indicating a large untapped market.
"The main differentiator will be the fact that you can now use data on your TV – which opens up a new world of content for our subscribers who can now stream content on demand or play games online," added Mr. Collymore.
Changing Market Landscape ¶
The shift to digital broadcasting is setting the stage for broader technology-driven changes in the market, potentially allowing telecommunication companies like Safaricom to offer TV content and broadcasters to provide Internet services.
Increased competition is anticipated, particularly in Internet service provision and news dissemination, with existing pay television providers already adjusting their pricing strategies in response.
The recovered account cited reporting by Nairobi News.
