[kictanet] CCK to renew Safaricom's licence

[Ali Hussein]

Wambua

Thanks for sharing. That's quite abit of change there! :) may I ask a few questions?

1. How does the exchequer spend this money? Is this plowed back into the sector or does it go into the big kitty and used up among the other monies in the treasury?

2. When are the other telcos licenses coming up for renewal? I'm asking this as I feel its pertinent and linked to the continued vibrancy and competitiveness in the sector. I'm very curious whether the other Telcos - Orange, Yu and Airtel have the local balance sheets to afford this new fee unless their mother companies bail them out. The case of Orange is obvious. They are already asking Telcom France and the Kenyan Government to pump in several billion shillings in a rescue package. So my question is this:- When these licenses come up for renewal and these companies fail to pay up what's the plan? Will we yank their licenses? 

3. Lastly Wambua, I have asked this question severally. Where are we at on the issue of the Universal Access Fund? Based on the presentation by Madame Susan Mochache-Wekesa it is very obvious that the country requires to double up on the rollout of the NOFBI to ensure universal broadband access. We know that the members are now in place and its been several months. Can we have a status report on the activities so far and their 5 year Strategic Plan?

Thanks  

Ali Hussein
CEO | 3mice interactive media Ltd
Principal | Telemedia Africa Ltd

+254 713 601113/ 0770 906375

"The future belongs to him who knows how to wait." - Russian Proverb

Sent from my iPad

On Jul 26, 2013, at 4:47 PM, "Wambua, Christopher" <Wambua at cck.go.ke> wrote:

> 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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