[kictanet] Revisiting The Broadband Debate in Kenya

Fri Mar 26 13:53:31 EAT 2010

Thanks Joe, and Sammy G,

Am actually wondering, how we can engage both the ministry(policy), and CCK (regulator) on this very pertinent issue...?
Are the wrangles over licensing stifling rollout in any way, and in turn denying the sector the much needed competion,
which ultimately would drive down pricing for mobile broadband..? If so, then it needs to be sorted now..

Clearly for over a period of time now that this debate on broadband has raged, it has been met with a "studious" deafening 
silence. Is it not time, we asked the Kictanet secretariat to some  form of  RFC -"Request for comments" from both offices..?   
Walu...?

There are very valid points, being raised here..

Regards,
Harry

  _____  

From: kictanet-bounces+harry=comtelsys.co.ke at lists.kictanet.or.ke [mailto:kictanet-bounces+harry=comtelsys.co.ke at lists.kictanet.or.ke] On Behalf Of Joseph Mucheru
Sent: Friday, March 26, 2010 12:37 PM
To: harry at comtelsys.co.ke
Cc: KICTAnet ICT Policy Discussions
Subject: Re: [kictanet] Revisiting The Broadband Debate in Kenya

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

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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 ] [ View all FAQs ]

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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