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Nigeria Will Pioneer With Free Digital Television by linztech: 8:49am On Aug 13, 2016 |
Welcome the first African country that is going to
switch from analogue to free digital TV. Some of
the African countries have already migrated to
digital, but they work on a subscription model,
so the subscribers have to pay. In the
meantime, the Nigerian government decided to
copy the Freeview model pioneered in the UK,
and is going to get 30 channels into 20 million
homes through subsidized digital set-top boxes
worth $7.50 each. However, customers will still
have to pay for the boxes and a license fee of
$5 a year.
The experts explain that about 16 digital
channels can fit in the space of an old analogue
one, which means that a spectrum worth about
$1bn will be freed up, which can be sold to
mobile phone companies in order to satisfy
Nigerians’ growing demand for 3G and 4G.
Taking into account the cost of subsidizing the
boxes and installing transmitters across Nigeria
(approximately $500m), the government can
get another $500m profit to plug the holes in its
budget caused by low oil prices and production.
The authorities believe that this model can work
because they’ve already sold off some spectrum
to a South Africa-based mobile telecoms
company for $170m. Perhaps, Ghana, Congo
and Ivory Coast can follow the example of
Nigeria. There can be a domino effect, because
digital signals in countries that make the switch
may interfere with other countries’ analogue
signals.
Market experts explained that the main
competition is Chinese StarTimes, which has a
different business model: it offers African
governments cheap lending in return for control
of the TV service using a pay-TV model. FreeTV
first launched in central Nigeria in May 2016,
and it is expected that the analogue signal will
be switched off this November.
A knock-on effect on the local movie industry is
also expected: it was estimated that Nollywood
studios that now struggle with piracy would get
an extra $250m a year. Country residents have
questioned whether Nigeria will really manage
to switch off the analogue signal by 2017, saying
that the government has previously missed its
targets in 2012 and 2015. On the other hand,
others call it “the new telecoms” industry,
because the figure of 30m households makes
Nigeria a bigger market than any of the
countries with free digital TV. |
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