The move comes a little more than a year after the firm revealed an interest in entering the TV-on-demand market.

Francis Wangusi, the director general of the Communications Authority of Kenya (CA), said Safaricom applied for the licence two weeks ago complete with approval for a set-top box — the gadget that converts analogue signals to digital.

“Safaricom is the latest firm that has sought type approval for a set-top box. They have also applied for a digital broadcasting licence but we have yet to approve that,” Mr Wangusi said, adding that the regulator was still considering the possible impact of television signals on the quality of telecoms services.

Bob Collymore, the Safaricom chief executive said they are mainly interested in using the set-top boxes to deliver Internet to households that own a TV set. He has in the past spoken of selling Internet and TV as a package.

If awarded a licence, he said, Safaricom would deepen its plan to establish a presence in the emerging broadcasting sector by taking competition to the doorsteps of the mainstream media.

Mr Wangusi said the CA had approved Safaricom’s set-top box, giving it an advantage in capturing the emerging home Internet market.

Safaricom plans to sell the universal set-top box in the local market, meaning buyers will also have access to all free-to-air TV channels.

The telecoms operator’s approach to the emerging digital broadcasting dispensation is similar to that of Africa Digital Network (ADN), the company owned by the three media houses that have been at war with the government over digital migration.

ADN, which has a self-provisioning licence, plans to import universal set-top boxes for which consumers will not pay monthly fees, but come with add-ons such as wireless Internet access.

READ: Top media firms to stir market with free to air digital boxes

Broadcasters and telecommunication service providers have never been in direct competition but the ongoing switch to digital broadcasting appears to be setting the stage for broader technology-driven changes in the market that may in future see Safaricom offer some TV content. 

In the new digital dispensation, telecommunication companies such as Safaricom, Wananchi Group, and Telkom Kenya can offer broadcast services such as video on demand, taking competition a notch higher.