Kenya’s first movie and television streaming service from Able Wireless is running into problems with government over its unique status as part broadcaster and part internet provider.

The launch of the service that was supposed to happen on November 1 has been pushed to a later date because of some legal requirements.

This means that the company will have to wait a little longer before they are given the necessary license to operate.

“Our biggest challenge has been the government,” Kahenya Kamunyu, the co-founder and CEO of Able Wireless told ITWeb Africa.

“The government does not know how to view us,” he said.

The service borders on broadcasting through their video on-demand offering and internet service provider via their provision of broadband.

And the confusion regarding its nature has illustrated how legislation in Kenya is not ready to adopt new media, regardless of the government being committed to a technology driven economy.

“It forced us and our partners to reevaluate our business position and at the same time try to keep the prices on the same level,” Kamunyu said.

“But we found a sweet spot. The tech part is still on course,” he added.

Able Wireless’ service allows viewers to view movies, series and documentaries across the globe, enabling them to view or queue what they want to watch through a streaming device: the black box.

This service, similar to Netflix and Hulu in North America, is aimed to help curb rampant Hollywood movie piracy in Kenya.

According to Kamunyu, the black box would go for around Kshs 8,000 (US$95). But this being still a high price for most Kenyans, the company is looking to have a minimal deposit and then have a pay-as-you-go model.

For the streaming service and broadband, users will pay Kshs 500 (US$ 6) per month.

Kamunyu also pointed out to the numerous taxes the company has faced in trying to bring in hardware that make up the black box.

This has delayed the production of the black box and also heaped financial pressure on the business.

But this has not deterred the plans of Able Wireless. The company is currently assembling 100 units everyday from their simple workshop.

Kahenya also revealed plans for distribution for the service. In Kenya, most illegal DVDs are sold by traders who could be turned into legal support personnel for the service and be absorbed by the company.

“They are forming part of our foundation for our distributors. We are turning them into legitimate businessmen. They will be selling the devices (Black box) and offering support,” Kamunyu said.

This will see that the ‘illegal’ business of DVD sellers are possibly not rendered jobless once the Able Wireless service goes live.

“The conference will see distributors coming in to discuss the policy that will govern them. It is more or less a vote on how they would want to do business,” Kamunyu said.

The company held its first distributor conference on November 9 to come up with ground policies on how the service will roll out.

As Able Wireless readies its launch, one company is also plotting a debut of its video on demand service.

Liquid Telecom is set to also unveil its own TV streaming service named ‘Ipidi’. The company plans to preview the service at the upcoming AfricaCom conference in Cape Town, South Africa.