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Safaricom shakes up digital TV with internet

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The switch to digital broadcast left players in the set-top box business thinking of better solutions to capture the thriving market. The BigBox is the latest that the giant telecom firm has picked to drive its extensive 3G as well as the growing 4G data network and will offer subscribers access to several TV channels in high definition format.

As much as subscribers can watch content through online video services like YouTube, the device can also serve as a wi-fi hotspot for up to 10 users, supporting data-heavy applications.

Outlook for the seemingly untapped home market in Kenya has never been glossier, as highlighted by the birth of this DVB-2 device. The unique set top box may offer an answer to the estimated 2.4 million households out of the 3.2 million that have access to digital television sets but are not using any of the set top boxes that are currently available in the market.

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The market is seeing more growth so much that when analogue signals of broadcasters like Citizen TV, NTV, Qtv and KTN were shut down sometime in February this year, a majority of Kenyans turned to the internet, an indication that the frontier for Tv is also big online. Set top box market continues to be largely driven by the middle class as well as the corporate companies that are in need of information channels. Local broadcasters are also in the race vying for a share of the lucrative market.

Consequently, the hype at the recent launch of the latest digital brand, The BigBox, at the Sarit Centre was unique and will most likely give rivals a run for their money. The BigBox is actually inspired by Safaricom’s focus to democratise data use across all segments of society. “We’ve provided several options for customers,” says Catherine Njari, Safaricom’s Seniour Manager, TV.

“The price is a bit limiting but we’ve tried as much as possible to those feeling it’s expensive to buy it in instalments… customers can use m-Shwari to finance purchase of the box. It is going at that price because of the fact that it is able to provide internet. It is what the box is capable of doing. So those who don’t have internet in their homes can get also internet.”

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Customers can access the set top box through an instalment plan of six months that will cost an initial amount of Ksh4, 999 plus additional Ksh999 to be charged monthly for a period of six months. She expects to see more business from The BigBox, which is currently experiencing high uptake from customers. An alternative option, though, allows the subscriber to make a one-off payment of Ksh9, 999 to access free-to-air channels, up to 6 GigaByte (6GB) in data bundles a month as well as free YouTube access – a gigabyte or GB is just a measure of computer data storage capacity.

Benefits of digital platforms are picking up pace now replacing traditional analogue platforms. Players have generally charged exorbitant amounts, making pay TV inaccessible to many. There is even a joke in town that people should pay for rent and “unga” but not pay for tv channels just to try to poke holes in just how much paying for television channels can leave a hole in your pocket.

There is now an increase in competition. There are more people with purchasing power signing up to DStv, GOtv, StarTimes, Azamtv, Bamba TV, Zuku tv, and relatively publicised Citizen TV set top boxes.

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