Nigeria has concluded plans to build a new digital tools manufacturing industry estimated at over N2.5 trillion as it targets 2017 for its migration from digital to analogue broadcasting, New Telegraph has gathered.
Already, the government has issued licences 13 STB manufacturing firms to produce the ‘decoders’ for the millions of TV households in the country.
One of the licensees, Media Concepts International (MCI), in partnership with South Korean firm, KAON, is set to make the initial investment by establishing a N197 billion ($1billion) Set Top Box (STB) manufacturing plant in Lagos.
The industry, it was gathered, was conceived following government’s decision to ensure local manufacturing of Set-Top Boxes (STB), which is a critical signal decoding element of transition from analogue to digital broadcasting.
He said that consumers would receive over 30 new free to air channels yearly for the price of a N1,500 STB. Mba explained that DSO long-term economic impact on Nigeria would lead to a host of value added services such as news, information and video on demand; establishment of a leading digital economy; development of a whole television and content ecosystem and N200 billion yearly boost from additional advertising, content and Nollywood income streams.
Also, it will lead to development of high tech STB manufacturing industry with government receiving N100 billion income from spectrum sales (digital dividend); N30 billion yearly boost from the digital dividend; news and information channel to 20 million plus homes and a thriving digital economy generating at least 55,000 highly skilled jobs.
Meanwhile, with the signing of Memorandum of Understanding (MoU) between MCI and KAON, Mba said that MCI was the first STB manufacturer licensee that paid its N50 million authorisation fee over a year ago and has now commenced the process for local manufacturing of set top boxes.
MCI is one of the 13 indigenous companies licensed by the NBC) for the manufacturing of STBs in the country. The STBs will be used to convert analogue television sets to show digital channels at the homes of millions of Nigerians.
It was learnt that the construction of the manufacturing plant would begin in December, 2015 and would be completed by the end of 2016 thereafter, manufacturing activities will kick off.
It is envisaged that the STB plant would employ over 1,000 technical staff that will be trained on local assembly in the first instance and full manufacturing of set top boxes locally.
Nigeria’s digital switchover (DSO) driven by the private sector will lead to production of settop boxes and viewing of digital channels by TV viewers in line with the directive of the International Telecommunications Union (ITU).
Speaking at the MoU signing, Chairman of Media Concepts International (MCI), Mr. Babatope Agbeyo, said that his company’s technical partner, KAON of South Korea, which is among the top three STB manufacturers in the world, would not just bring its expertise but would ensure technology transfer in the manufacturing and maintenance of STBs as well as invest as an equity holder in the Nigerian plant.
