[kictanet] LTE/4G and the state of broadband and Universal Access in Kenya

Tue Dec 9 13:13:41 EAT 2014

Walu,

On Tue, Dec 9, 2014 at 12:48 PM, Walubengo J <jwalu at yahoo.com> wrote:

> Adam good thoughts..especially
>
> ****"If Safaricom can sell LTE to the 1% and that makes enough money to
> pay well for the spectrum license and GoK then uses that money for the USF
> to build 3G towers in rural areas - then that's really great".
>
> *But then again Safcom is not a charity organisation and may rather pay
> out the profits to the shareholders (like me :-) rather than build extra
> 3G towers to remote non economic zones in Kenya.*
>
> Those 3G towers would be built with the USF which would be topped-up by
the license auction (or by dividends from a dedicated utility that runs the
LTE towers).

> then
> ***"4G/LTE deployments aren't really that much more expensive than 3G as I
> understand it."
> *I dont have the actual costs, but the fact is 4G/LTE base stations have a
> small footprint/radius compared to 3G, so you will require more base
> stations to cover larger areas/populations. More base stations more money
> hence the cost of service to the customer can only be higher.*
>
> For the near future, LTE and 3G are complementary (i.e. they would both be
deployed simultaneously in overlapping networks) and costs to build out LTE
would only be paid back by LTE users.  Safaricom is smart enough to figure
out the economics on this and I'm sure they wouldn't be deploying LTE in
Nairobi/Mombasa if it didn't mean they would make more money over time.

> *** The big difference is the 'cost' of the spectrum - which is whatever
> the market will bear.
> actually cost of spectrum will be decided/or has been decided by the
> Regulator. But the point is, even if it was given away for free, or through
> trading there is no guarantee that the benefit will not be translated to
> the consumer.
>
> I'm hoping they auction the spectrum or assign it to a heavily regulated
tower operator that the MNOs can use.  Proceeds would go to USF and to
improving the backhaul infrastructure..

>
> *In summary, I guess my beef is not against the LTE technology( it is
> good, it is inevitable and it will be deployed).  My point is that it will
> not address the high cost of communication and is not likely to address the
> bigger picture (getting everyone online).  *
>
We agree in the end :-)  LTE is indeed inevitable which in my experience is
always a reason to just get started with it and develop expertise around
the technology.  It will be on every smartphone sold in about a year and
building out a countrywide LTE network will take at least 2 years in Kenya.

>
> *And yes, that is not Safaricom's problem but the Regulators problem. *
>

We all wish the regulators were stronger and more thoughtful.

Adam

>
>
> walu.
>   ------------------------------
>  *From:* Adam Nelson <adam at varud.com>
> *To:* Walubengo J <jwalu at yahoo.com>; KICTAnet ICT Policy Discussions <
> kictanet at lists.kictanet.or.ke>
> *Sent:* Tuesday, December 9, 2014 12:14 PM
> *Subject:* Re: [kictanet] LTE/4G and the state of broadband and Universal
> Access in Kenya
>
> Walu,
>
> The best response to your article is in the comments:
>
> "4G brings with it unique capabilities like VoLte with lean radio protocol
> stack...3G voice is only possible with forced 2G fall back..so we need
> 4G...one will not need 2 radio access types to obtain service...one lean 4G
> radio access is enough...the capex is also low given smaller equipment
> footprint..."
>
> 4G/LTE deployments aren't really that much more expensive than 3G as I
> understand it.  The big difference is the 'cost' of the spectrum - which is
> whatever the market will bear.  If Safaricom can sell LTE to the 1% and
> that makes enough money to pay well for the spectrum license and GoK then
> uses that money for the USF to build 3G towers in rural areas - then that's
> really great.
>
> What would be better is a decoupling of the tower system from the
> providers and then there can be a single LTE network run by a utility that
> rents space in a well regulated way to the MNOs ... but even though Rwanda
> is doing that, I don't see Kenya following in that path.
>
> -Adam
>
> --
> Kili - Cloud for Africa: kili.io
> Musings: twitter.com/varud <https://twitter.com/varud>
> More Musings: varud.com
> About Adam: www.linkedin.com/in/adamcnelson
>
> On Tue, Dec 9, 2014 at 12:05 PM, Walubengo J via kictanet <
> kictanet at lists.kictanet.or.ke> wrote:
>
>
>
> Mwendwa,
>
> It could have been easier to break down these important issues and perhaps
> allocate each 1-2days for feedback from Listers on each of the issues.
>
> Otherwise my controversial LTE/4GE views are well captured here Despite
> low uptake of 3G internet, mobile companies want to roll out 4G
> <http://www.nation.co.ke/oped/blogs/dot9/walubengo/-/2274560/2335364/-/11xds36z/-/index.html>
>
>
> [image: image]
> <http://www.nation.co.ke/oped/blogs/dot9/walubengo/-/2274560/2335364/-/11xds36z/-/index.html>
>
>
>
>
>
> Despite low uptake of 3G internet, mobile companies want...
> <http://www.nation.co.ke/oped/blogs/dot9/walubengo/-/2274560/2335364/-/11xds36z/-/index.html>
> Sometimes we must ask ourselves a few questions about this technological
> rat-race
> View on www.nation.co.ke
> <http://www.nation.co.ke/oped/blogs/dot9/walubengo/-/2274560/2335364/-/11xds36z/-/index.html>
> Preview by Yahoo
>
> As for the USF challenges, I had assumed all was well following the
> gazettement of the new board members in June this year to the Commission in
> charge but open to hear more.
>
> walu.
>
>  ------------------------------
>  *From:* Mwendwa Kivuva via kictanet <kictanet at lists.kictanet.or.ke>
> *To:* jwalu at yahoo.com
> *Sent:* Tuesday, December 9, 2014 9:44 AM
> *Subject:* [kictanet] LTE/4G and the state of broadband and Universal
> Access in Kenya
>
> (Apologies for cross-posting)
>
> Nothing is as great as high internet speed. That is the mantra on
> Safaricom's 4G page (1). Safaricom's 4G/LTE service is the first of
> its kind in the region and promises a browsing experience like never
> before. Long Term Evolution  (LTE) is a standard for wireless
> communication of high-speed data for mobile phones and data
> terminals.(2)
>
> To use LTE you need a 4G capable Device (phone/tablet/modem), Change
> to a 4G enabled SIM card  and be in an area covered by the 4G service
> i.e. Some parts of Nairobi and Mombasa.
>
> With the rollout of 4G in some parts of Nairobi and Mombasa, we are
> exploring the state of "real" broadband in Kenya, the cost to the
> common citizen, and coverage. As we continue to privilege those of us
> in urban areas, how are we catering for the interests and needs of the
> marginalized?
>
> TESPOK in August issued a statement (3) advising it's members not to
> pay Universal Service Fund (4) until they meet with the Communications
> Authority Director General and ICT cabinet Secretary to clearly define
> the procedures and processes of administering the 0.5% of operators'
> annual revenues. What is the current state of USF in Kenya? Is it
> operational? Is the 0.5% sufficient to have any impact in society?
>
> Are the USF Council members (5) representative of the Internet
> community in Kenya? Are all stakeholders interests taken into
> consideration in forming the council? Would these distinguished
> citizens know the troubles the user in Kitui goes through when he has
> to climb a flag-post to get network signal, or the parcel that arrives
> in Lokitang after a month?
>
> Internet Society Kenya Chapter and Kictanet seeks to engage in a
> series of online discussions covering various trending issues which
> will culminate in a public consultative forum with industry and
> policymakers to share the feedback from the community and see how best
> we can influence and shape the Internet landscape in Kenya.
>
> Your valuable contribution is always appreciated.
>
> Sincerely,
> ______________________
> Mwendwa Kivuva, Nairobi, Kenya
> Secretary, Internet Society Kenya.
>
> NOTES
> (1). http://www.safaricom.co.ke/personal/internet/safaricom-4g-lte
> (2). http://en.wikipedia.org/wiki/LTE_%28telecommunication%29
> (3). http://www.tespok.co.ke/?p=310
> (4). http://ca.go.ke/index.php/purpose-of-the-fund
> (5). http://ca.go.ke/index.php/universal-service-advisory-council
>
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> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
> for people and institutions interested and involved in ICT policy and
> regulation. The network aims to act as a catalyst for reform in the ICT
> sector in support of the national aim of ICT enabled growth and development.
>
> KICTANetiquette : Adhere to the same standards of acceptable behaviors
> online that you follow in real life: respect people's times and bandwidth,
> share knowledge, don't flame or abuse or personalize, respect privacy, do
> not spam, do not market your wares or qualifications.
>
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