[kictanet] CCK to renew Safaricom's licence

[Wambua, Christopher]

Listers,

CCK to renew Safaricom's licence

Kenya's largest mobile operator - Safaricom - will pay Kshs2.36billion (US$27million) for renewal of its operating licence for a further term of 10 years.

CCK today announced that the renewal of Safaricom's licence would depend on the operator paying the renewal fee upfront and meeting the set minimum quality of service standards by June 2014. Safaricom's initial licence term of 15 years is set to expire on 30th June 2014 but has a provision for a possible renewal for a further term of 10 years.

Addressing the media at the CCK offices, CCK Director General Mr. Francis Wangusi said the renewed Safaricom licence would come with a set of new licence terms and conditions negotiated between the regulator and the mobile operator.

The licence renewal fee of US$27 million is based on the bid price offered for the third GSM mobile licence by the latest entrant to the mobile telecoms market in Kenya -Econet Wireless Kenya Ltd (now Essar Telecom Kenya Ltd).

The Director General said that whereas Safaricom has significantly contributed to the economy, developed innovative products and services and met most its licence obligations, the mobile operator needs to up its game in regard to meeting the set quality of service standards.

''We have  considered the fact that whereas Safaricom has met most of its licence obligations, its continued failure to meet the set Quality of Service standards remains a concern that needs to be addressed,'' said Mr.  Wangusi.

Mr. Wangusi further said the three other mobile operators would pay the same amount for renewal of their licences for a further term of 10 year to ensure parity and a level playing ground for all service providers in the sector.

At the sametime, the Director General said the spectrum assigned to the four mobile operators will be subjected to an auction after the expiry of the 10-year renewal term. ,
The full statement of the Director General is available on the CCK website at http://www.cck.go.ke/news/speeches/2013/Press_statement__Safaricom_licence.pdf

Wambua
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