[kictanet] Revisiting The Broadband Debate in Kenya

Joseph Mucheru mucheru at google.com
Fri Mar 26 12:36:57 EAT 2010


Sammy, Listers

I am curious about certain regulations in the market. I am aware that CCK is
issuing technology neutral unified licenses. So what is the big debate about
3G licenses. Can someone shed some light? Why did CCK charge Safaricom a fee
for a technology? Are we expecting a further license for 4G and will they
cost more than the 3G and if other players are having difficulty paying now,
how will they pay for 4G, does such a licensing framework allow for lower
prices and more capacity in future?  and so on ...

Below is the CCK FAQ on their website clearly stating the unified licensing
framework is technology neutral.
http://www.cck.go.ke/licensing/telecoms/faqs.html


 FAQs - Telecommunications
[image: Print This] [image: Email This]

Telecommunications
The Commission constantly receives a wide-range of queries from various
stakeholders touching on ICTs in general and telecommunications services in
particular. The following are the Frequently Asked Questions (FAQs):
[ Ask a Question </consumers/feedback.html> ] [ View all
FAQs</misc/faqs_all.html>
 ]

   1. Who is a Local Loop operator (LLO)?
   2. What are the licence conditions for a LLO?
   3. Who is a Public Data Network Operator (PDNO)?
   4. What is the license and Operating fee for Public Data Network
   Operator?
   5. Who is a Internet Gateway and Backbone Operator?
   6. What is the license and Operating fee for Internet Gateway and
   Backbone Operator?
   7. What is the scope of Internet Gateway and Backbone license?
   8. What is the Commission's policy on use of xDSL services?
   9. What is the future trend of licenses verses technological neutrality?

   With regard to the scope of the licenses, the Commission's ultimate
   objective with respect to the market categorization, as indicated in our
   broad strategic statement released recently, is to adopt a unified licensing
   framework that permits any form of communications infrastructure to be used
   to provide any type of communications service that is technically capable of
   being provided and to structure the market accordingly by creating the
   following distinct and technology neutral market categorization:
   - Network Facilities Provider (NFP) – who shall own and operate any form
      of communications infrastructure irrespective of whether it is
satellite or
      terrestrial based and could support either mobile or fixed applications.
      - Applications Service Provider (ASP) – to provide all forms of
      services to end users using the network services of a facilities
provider.
      - Contents Services Provider (CSP) – to provide contents such as
      broadcast (TV& Radio) material, and other information services and
      applications such as data processing etc.

   The Commission, therefore, intends to grant authorization for the various
   markets consistent with the aforementioned future segmentation without
   facilitating anticompetitive practices such as vertical integration
   scenario.

   In this regard, therefore, the Commission shall continue to insist on
   separation of service provisioning (provision through separate entities)
   between facility-based providers such as PDNO & LLO from those of
   non-facility based providers such as ISP . Consequently it will be expected
   that application and content providers such as ISPs on one hand and network
   providers such as Internet Gateway and Backbone providers, PDNOs etc. shall
   remain in different market segments under the above-mentioned market
   structure.

   *** *Consistent with the aforementioned, therefore, Internet Backbone and
   Gateway Operators will be expected to provide national extension facilities
   to link their customers being only ISPs, IXPs and other licensed operators
   without the need to use third party facilities. This is also in view of the
   need and obligation on the part of the Internet Backbone and Gateway
   Operators to provide national Internet backbone services to enable the
   widest spread of Internet services throughout the country ***.*

   In this regard, therefore, Internet Backbone and Gateway Operators will
   not be allowed to provide Internet access services directly to end users but
   instead they will be expected to concentrate in providing backbone services
   to ISPs and other licensed access network operators. Deployment of mini VSAT
   equipment to service end-users will, therefore, not be permitted under this
   license.
   10. What is the Commission' policy on ownership of more than two
   companies offering services in different market segments by related
   directorship?
   11. Who is allowed to carry Multimedia and VoIP application Services?
   12. Are laws on rights of way applicable to all telecommunication
   facility providers or for selective providers?
   13. Can I be allowed to use the way leaves, as a new entrant in the
   telecommunication market, of the existing facilities providers like KPLC,
   Kenya railways and Telkom Kenya to construct my infrastructure?
   14. Do I have a right to co-locate my facilities with other
   telecommunication facilities providers or service providers?
   15. Are there enough frequency resources for the PDNO market in the
   country?







Thanks

Joe

On Fri, Mar 26, 2010 at 12:11 PM, Sam Gatere <sam.gatere at gmail.com> wrote:

> Dear Listeners,
>
> 4G technology looks and even sounds just great!  but I think we ask the
> question to early about preparedness locally to receive this technology. I
> agree with Harry D.'s point that pressing for high quality broadband that is
> favorably priced would be a better way to look at it. Currenly 3G services
> are not accessible to many countrywide. So technologically speaking we are
> not yet exploiting 3G let alone prepare for 4G! Once we get one thing right,
> that is, easy and reliable access to broadband and good pricing then 4G will
> be a reality.
>
> Looking at pricing and licensing the challenges therein may need state
> intervention. Some players paid full fees for 3G licensing yet others feel
> the price is too high for them bear yet they want to offer the same service.
> If the later are let off the hook that would mean creating an uneven play
> field with different rules!
>
> On pricing I think the providers are caught in a "catch 22" Their
> operational costs still remain high (Especially Utilities e.g. power and
> human resource) and they are forced to lower their prices. I'm sure the
> price cuts we have seen in recent months have involved serious balancing
> acts. To ensure people keep their jobs, and the companies still offer
> services.
> Maybe what we shall see in the very near future is value added services
> such the Tripple or Quad play services. Instead of offering you just
> broadband services, they may just include cable TV, Land-line phone and a
> family plan Cell phone deal all for one price?
>
>
> SammyG
>
>
>
> On Thu, Mar 25, 2010 at 7:49 PM, Harry Delano <harry at comtelsys.co.ke>wrote:
>
>>
>> Mr. Pius, et al,
>>
>> I suppose we still have quite some "unfinished" business, on the current
>> Mobile broadband technologies
>> we have to date, the fastest being 3G.
>>
>> Sometime back on this forum, an embroiling debate ensued on the licensing
>> structure for 3G, I do
>> not know if this has now been resolved. Some things in our setting seem to
>> have a knack of fading
>> off into oblivion as soon as they arise and remain open ended..
>>
>> Before we talk of 4G, I think it would only be fair for pricing on Mobile
>> broadband data on the
>> current platform to be addressed ASAP, so that all and sundry can enjoy
>> this
>> resource to the maximum.
>>
>> Policy makers keep insisting that competition will drive down pricing.
>> Clearly, we've been at it over
>> time now and seems little is happening on ground - Why..? Because there is
>> literally no competition in
>> Mobile Broadband, where we have 2 - 3 main active players. Infact the
>> players track each other closely
>> and prices seem to be closely pegged.
>>
>> When all the international Optic Fibre cables were being anxiously awaited
>> for, everyone hailed the
>> advent of "rock bottom" pricing for broadband, across board only for this
>> to
>> become a mirage once
>> they landed. What changed..?
>>
>> Now one additional cable is landing..? What does this herald. Downward
>> pricing..? Remains to be seen.
>>
>> I'm not sure whether the it's time for the wielders of the "Big" stick
>> now,
>> to deal with this once and
>> for all, including the main broadband sector.
>>
>> I suppose, let's sustain the momentum to press for high quality broadband
>> experience at competitive
>> pricing by our standards - national..
>>
>> Harry
>>
>>
>>
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>
>
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Joe Mũcherũ
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Google Kenya
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