[kictanet] CCK to renew Safaricom's licence

Tue Jul 30 08:06:48 EAT 2013

Ali,

I missed it, and thanks for the reminder.

As you may appreciate, I have no competence to speak on behalf of the National Treasury.  However, my assumption is that that the money goes to big kitty.  This may not necessarily be bad for the sector as the same money could be used to develop infrastructure i.e. roads, electricity etc. which are crucial for deployment of ICT infrastructure. Infrastructure is also important in supporting productive activities without which consumption of ICT services would be a challenge.

The renewal of Airtel is due in February 2014, Essar in 2018, and Orange in December 2022.   It is not expected that shareholders would fail to pay as they have many options of raising the money. If they fail to meet the renewal requirements, the Commission would consider a number of options including auctioning the spectrum.

In respect to the Fund, the Commission is currently consolidating licensee comments/input on the USF framework. The framework is meant to inform the public and all stakeholders about the key aspects, considerations, and principles that the Commission shall uphold in administering the Fund (the framework is available at http://www.cck.go.ke/links/consultations/current_consultations/USF-Framework.pdf) . Once this exercise is completed, the Commission shall embark on the process of invoicing licensees for the levy with a view to bringing the Fund into operation.

Best regards,

Christopher Wambua
Manager – Communications
Consumer and Public Affairs Department
Communications Commission of Kenya
P.O. Box 14448 NAIROBI 00800
Tel: +254 20 4242209
info at cck.go.ke<mailto:info at cck.go.ke>
www.cck.go.ke<http://www.cck.go.ke>

From: Ali Hussein [mailto:ali at hussein.me.ke]
Sent: Tuesday, July 30, 2013 3:52 AM
To: Wambua, Christopher
Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions
Subject: Re: [kictanet] CCK to renew Safaricom's licence

Bwana Wambua

I'm assuming you missed this:-

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?

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 29, 2013, at 5:38 PM, "Wambua, Christopher" <Wambua at cck.go.ke<mailto:Wambua at cck.go.ke>> wrote:
Edith/Listers

One of the responsibilities of CCK is to protect the interests of consumers, including against poor quality of service. To this end, CCK independently monitors the QoS on annual basis to determine whether licensees meet the minimum set parameters or standards.  Each year, we publish the performance of the four mobile operators in respect to QoS to empower consumers make informed choices in the market.  We also levy penalties on non-compliant licensees (i.e. those that do not meet the set standards).  The penalties stipulated in the Kenya Information and Communications Act, CAP 411A of Kshs500,000, are however too low and do not serve as an adequate deterrent. To address this, the penalties have been enhanced in the proposed Kenya Information and Communications (Amendment) Bill. CCK is also enhancing its monitoring  capabilities to be able to process and publish the performance results more frequently for public information and as a way of encouraging service providers to provide quality services.

The monitoring results also assist licensees to identify areas of non-compliance for purposes of improvement.  Arising from our concern over QoS performance, CCK has requested non-compliant licensees to submit action plans on how they intend to improve on QoS.

Let me also add that QoS is a major consideration in the renewal of  licences for the mobile operators and other service providers.  The renewal of the Safaricom licence is due in June 2014.  CCK is looking forward to enhancing the licence conditions in respect to QoS to make ensure that consumers get value for their money.

Best regards,

Christopher Wambua
Manager – Communications
Consumer and Public Affairs Department
Communications Commission of Kenya
P.O. Box 14448 NAIROBI 00800
Tel: +254 20 4242209
info at cck.go.ke<mailto:info at cck.go.ke>
www.cck.go.ke<http://www.cck.go.ke>

From: Edith Adera [mailto:eadera at idrc.ca]
Sent: Monday, July 29, 2013 4:43 PM
To: Wambua, Christopher
Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions
Subject: RE: [kictanet] CCK to renew Safaricom's licence

Dear Wambua,

Thanks for bringing this issue to our attention. Actually, 2 weeks ago an email I had composed for the list got deleted before I could deliver it…then I got swamped!

The email was about the “poor quality of service”  from Safaricom – too many dropped calls, uncompleted calls, undelivered sms”, hanging sms” etc.  and asking the BIG QUESTION: “WHAT IS CCK DOING ABOUT THIS UNACCEPTABLY LOW QUALITY OF SERVICE?”

I see you have suggested that renewal of license is subject to “ …..meeting set minimum quality of service standards by June 2014.”

Why by June 2014?

We want good service NOW!

Can CCK address this now and get back to us telling us what will be done now and NOT June 2014?

Concerned Edith

From: kictanet [mailto:kictanet-bounces+eadera=idrc.ca at lists.kictanet.or.ke]<mailto:[mailto:kictanet-bounces+eadera=idrc.ca at lists.kictanet.or.ke]> On Behalf Of Wambua, Christopher
Sent: July 26, 2013 4:48 PM
To: Edith Adera
Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions
Subject: [kictanet] CCK to renew Safaricom's licence
Importance: High

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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