[kictanet] NEW RULES FOR TELECOM OPERATORS EXPECTED IN KENYA

[alice]

NEW RULES FOR TELECOM OPERATORS EXPECTED IN KENYA

The Kenyan Government is preparing new licensing regime for operators of 
telecommunication services. Information and Communications minister, 
Mutahi Kagwe further revealed that the process of searching for the 
Second National Operator (SNO) and third mobile operator would begin 
again soon.


He said the changes would be as a result of the planned review of the 
sector's 1997 policy statement. It was this document that introduced the 
threshold for equity participation by local investors in the 
telecommunications companies. Under the rule, any foreign firm entering 
the telecom market must offer 30 per cent sharehoding to locals."We are 
formulating new regulations for licensing national telecommunication 
operators and will gazette the new rules soon," he said.

The minister was speaking after the launch of Communications Commission 
of Kenya (CCK) Information Centre - Geographic Information System (GIS) 
and Quality of Service Monitoring System - in Nairobi on Tuesday.

The facilities are expected to enhance CCK's capacity to serve 
communications industry and improve service delivery to subscribers of 
Information and Communications Technology (ICT) services.

Kagwe, however, ruled out abolishing the requirement that foreign 
companies investing in the telecommunication sector allocate 30 per cent 
shareholding to locals. He said the Government is keen to uphold the 30 
per cent rule to ensure Kenyans have a share of the institutions. He 
said the Government would adopt measures to relax the requirement to 
quicken the process of appointing a Second National Operator (SNO).

Kagwe warned telecommunication service providers to brace stiff 
competition as more players join the market and challenged them to deal 
with existing inadequacies and align themselves to the demand patterns 
in the market. "I believe that efficiency and reliability in the 
delivery of telecommunications services requires consistent pro-active 
response to customers' needs. This is the foundation of consumer 
satisfaction and ultimately the driver of service quality," he said. The 
review is seen as the Government's response to the perennial disputes 
between local and foreign investors that have frustrated the conclusion 
of major telecoms projects.

CCK chairman, Joseph Njagi, said the new quality service monitoring 
system would enable CCK verify the quality of services offered by 
cellular mobile operators. "It will now become easier for CCK to 
determine the service and network availability in various parts of the 
country, their accessibility and whether the call completion rate is up 
to the expected standards."
(SOURCE: The East African Standard)