[kictanet] Updates on the Operationalization of the Universal Service Fund

Fri Jan 20 00:02:24 EAT 2017

Hi Nanjira,

In response to your question, on the  Education Broadband Connectivity project and whether there are considerations for the connected schools to also serve as public WiFi access areas in those locations for community access? , note that the  schools broadband project will not have public WiFi access but the local communities will be allowed to use the school access points to access braodband after school hours and during school holidays.

Regards,

Rachel Alwala
Assistant Director/Communications and External Affairs
Communications Authority of Kenya
PO Box 14448
Nairobi 00800

Tel:  +254 703042000
Email:  alwala at ca.go.ke

From: kictanet <kictanet-bounces+alwala=ca.go.ke at lists.kictanet.or.ke<mailto:kictanet-bounces+alwala=ca.go.ke at lists.kictanet.or.ke>> on behalf of KICTAnet Discussions <kictanet at lists.kictanet.or.ke<mailto:kictanet at lists.kictanet.or.ke>>
Reply-To: KICTAnet Discussions <kictanet at lists.kictanet.or.ke<mailto:kictanet at lists.kictanet.or.ke>>
Date: Thursday, January 19, 2017 at 3:13 PM
To: Rachel <alwala at ca.go.ke<mailto:alwala at ca.go.ke>>
Cc: Nanjira Sambuli <email at nanjira.com<mailto:email at nanjira.com>>
Subject: [kictanet] Updates on the Operationalization of the Universal Service Fund

Great update, Rachel.

On the Education Broadband Connectivity project, are there considerations for the connected schools to also serve as public WiFi access areas in those locations for community access? The prospective benefits are numerous eg
i) opportunity for those who can’t afford mobile broadband (or sufficient amounts of it for meaningful access) to have alternative connection nodes, esp women and marginalized communities (income inequality dynamics)
ii) nodes for digital literacy skills - both for students and communities.

Overall, what are the plans for public WiFi towards universal access by 2020 looking like? (Aside from the MoICT-CDF ICT Hubs/Centres).

Regards,

Nanjira
www.nanjira.com <http://www.nanjira.com/>

About.Me<http://about.me/ninanjira> | Twitter<http://www.twitter.com/ninanjira> | LinkedIn<https://www.linkedin.com/in/nanjira> | Skype<http://hatscripts.com/addskype?nanjirasambuli>

IM: +254722481566 (WhatsApp | Telegram | iMessage)

PGP: 1DBE1F47A6878B0D

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Today's Topics:

  1. Updates on the Operationalization of the Universal Service
     Fund (Alwala, Rachel)

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Message: 1
Date: Tue, 17 Jan 2017 09:09:12 +0000
From: "Alwala, Rachel" <Alwala at ca.go.ke<mailto:Alwala at ca.go.ke>>
To: KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke<mailto:kictanet at lists.kictanet.or.ke>>
Subject: [kictanet] Updates on the Operationalization of the Universal
Service Fund
Message-ID: <D493F7CD.7C92%alwala at ca.go.ke<mailto:D493F7CD.7C92%alwala at ca.go.ke>>
Content-Type: text/plain; charset="windows-1252"

Dear listers,

Happy New Year to you all!

Following some enquiries, I thought it would be helpful to share an update of the operationalization of the Universal Service Fund.   All this information is  available for public consumption.  This gives an overview of the status of the country?s network connectivity and initiatives currently under implementation by Communications Authority of Kenya (CA) with respect to the Universal Service Fund (USF) projects.

BACKGROUND

The Kenya Information Communications Act 2009 (KICA 2009) and the Kenya Information and Communications Regulations 2010 (KICR US&A 2010) mandate the Communications Authority of Kenya (CA) to manage and administer the Universal Service Fund (USF). During the FY 2015/16, the Authority conducted an ICT Access Gaps study to identify ICT infrastructure and services gaps / high cost areas and estimate the appropriate financial subsidy amounts required from the Universal Service Fund (USF) to facilitate closing of the identified ICT gaps.

The Authority in the FY 2015/16 undertook an ICT Access Gaps study to identify gaps / high cost areas and establish the subsidy amounts required from the Universal Service Fund (USF) to facilitate closing the voice and data services gaps.  This study findings were released in mid 2016.

KEY FINDINGS OF THE ACCESS GAPS STUDY

1.1      2 G Coverage

The study established that 94.4% of Kenyan population is covered by 2G leaving out only 5.6% of Kenyan population that has no access to voice communications services.  Only 164 out of a total of 7,149 sub-locations remain totally uncovered, while a further 418 have less than 50% of their populations covered by 2G.

Table 1: Sub-location population 2G coverage

Coverage

100%

90%

50% - 90%

< 50%

0%

Sub-locations

5,655

487

425

418

164

1.2      3G Broadband coverage
78% of the population in Kenya are covered by 3G.
Table 2: Sub-location population 3G coverage

Coverage

100%

90%

50% - 90%

< 50%

0%

Sub-locations

2,454

1,324

1,146

977

1,244

1.3      The Broadcasting Sector
Kenya?s broadcasting market includes over 100 FM radio stations and around 40 digital Digital Terrestrial Television (DTT) sites.

Digital Terrestrial Television sites rollout.
The digital signal currently covers 60 per cent of the Kenyan population. The signal is available in; Nairobi, Nakuru, Nyeri, Mombasa, Kisumu,Webuye, Eldoret, Malindi, Meru (Nyambene), Kisii, Kericho, Narok, Nyahururu, Embu, Kisii, Machakos, Murang?a, Naivasha, Nyeri, Webuye, Narok, Mbuinzau, Kapenguria, Wajir, Kitui, Lamu and Namanga.

1.4      Post and Courier Sector
There are 623 post offices distributed across all counties as captured in Table 3.

Table 3: Country wide distribution of Post Offices

Administrative Level

Total

At least one PO present

Penetration of post offices

Min

Average

Max[1]

County

47

47

2

13

55

Constituency

295

264

0

2

14

Ward

1,450

480

0

33%

10

Sub-location

7,149

524

0

7%

7

1.5      Percentage 2G and 3G Network Coverage per County

Table 4: Estimated 2G and 3G Network coverage by County

County

2G (%)

3G (%)

Baringo

87.7

49.1

Bomet

99.8

97.7

Bungoma

96.4

95.2

Busia

99.1

95.4

Elgeyo Marakwet

97.1

34.7

Embu

99.6

88.3

Garissa

58.1

4.6

Homa Bay

97.8

87.6

Isiolo

54.7

16.4

Kajiado

74.4

38.9

Kakamega

99.9

93.5

Kericho

99.6

87.7

Kiambu

99.8

98.3

Kilifi

91.9

51.5

Kirinyaga

100.0

98.5

Kisii

99.9

90.2

Kisumu

99.9

98.8

Kitui

89.2

49.8

Kwale

91.5

46.4

Laikipia

90.8

48.9

Lamu

82.4

34.4

Machakos

99.9

73.0

Makueni

99.6

68.7

Mandera

66.9

9.4

marsabit

56.6

25.2

Meru

99.8

85.4

Migori

99.1

69.5

Mombasa

99.7

99.8

Muranga

99.7

80.8

Nairobi

100.0

99.9

Nakuru

99.7

74.6

Nandi

99.6

85.9

Narok

86.7

29.9

Nyamira

99.9

96.2

Nyandarua

99.7

66.1

Nyeri

99.8

86.5

Samburu

55.5

14.0

Siaya

99.6

94.5

Taita-Taveta

96.4

43.4

Tana River

85.8

12.8

Tharaka Nithi

97.9

77.6

Trans Nzoia

99.9

81.1

Turkana

34.8

10.2

Uasin Gishu

99.8

76.2

Vihiga

99.9

99.0

Wajir

48.2

8.4

West pokot

69.0

13.3

2.0        UNIVERSAL SERVICE FUND INITIATIVES TO IMPROVE ON CONNECTIVITY

2.1 USF PRIORITY PROJECTS AND PROJECTS IMPLEMENTATION STATUS
The ICTs Access Gaps study identified two priority projects namely;

a)   ICT Infrastructure projects to address Voice services: Voice services make a large contribution to closing the remaining gaps. This will reduce the population coverage gap from 5.6% of the population to around half (2.8%) by 2018.

?      The Voice gap project were to be tendered as multiple bidding lots at the sub-location or ward level. The NFP (Tier 1) operators were to be invited to bid for as many or few of the Lots as interests them.

b)   Education Broadband connectivity projects - Establish a first step towards addressing the critical national gap, which exists in connectivity of schools in Kenya.

?      The education broadband project was to be implemented through a framework of partnership with the Ministry of Education, Science and Technology. The tender for schools connectivity was to be implemented through competitive tendering process.

?      The above two USF priority projects shall be implemented under the accepted guidelines for USF, which stress on transparency and competitive bidding processes as per the procurement Laws in Kenya.

2.1.1     The Voice Service Projects and Implementation Status

A total of 348 sub-locations were identified through the combined GIS and Access Gap Model methodology as the priority cases which best meet the critical performance criteria suited to ?smart subsidies?, meaning that they will result in sustainable service provision in the gap areas.

The total of sub-locations to be included in the USF competition reduces to 202 after consideration of operator licence obligations between 2016 and 2018.
?        Implementation Status /Achievements

The Authority in August 2016 tendered for the Voice Infrastructure projects, which were structured into multiple bidding lots at the sub-location or ward level that yielded into 105 lots.

Telecommunications Voice Infrastructure and Services Tender was a restricted Tender for Network Facility Providers (NFPs), Tier 1 operators licensed to provide GSM mobile services in Kenya.

The Network Facility Providers (NFP, Tier 1) licensed operators were invited to bid for as many or few of the Lots as interests them. The Authority on 2nd  August shared the restricted tender document with the three NFP Tier 1 licensees with tender closing date being 5th October 2016.

The Authority held Pre-bidders conference on the 18th August 2016 attended by all the NFP Tier 1 operators. Tender evaluations commenced immediately after the closing on 5th October 2016.

 Analysis of the USF Voice Project Bids

The Table below shows the numeric results of the competition, indicating geographical area, populations and subsidy budget lots bidded and the subsidy amount awarded per bidder.
Table 5: Results of the USF Bid Competition

Lots

Sub-locations

Geog Area
000?s Km2

Unserved population

Subsidy

Expected Budget

Original Tender

105

202

45,304

697,971

Max.
2.362 Bn

1.600 Bn

Bid

37

86

29,906

389,778

1.458 Bn

Awards

34

78

24,291

319,318

Awards 1.245 Bn

1.245 Bn

Percentage awarded

32.3%

38.6%

53. 6%

45.7%

52.7%

77.8%

Additional Lots bid but subject to clarification and finally rejected

2

7

5,615
(12.4%)

70,460
(10.1%)

0.293 Bn

N/A

Way Forward

Out of the 105 lots, 37 lots (86 sub-locations) were bided for and 34 (78 sub-locations) awarded for voice infrastructure development.

Based on the awards, 38.6% of the targeted sub-locations will be reached, against the 60-70% projected in the Access Gap Report.
The Authority intends to close the voice gaps in all sub-locations through a phased approached with the first batch of 78 sub-locations being contracted for infrastructure development in the current fiscal year.
The Authority noted that Operators generally targeted large service areas with heavy subsidies for several new towers rather than smaller areas requiring more complex network optimisation.

The Authority is also planning to offer spectrum waivers to encourage roll out to the areas considered unattractive by the Mobile Network Operators.

Summary of results
The following graph shows the results on a county-by-county basis indicating tendered versus awarded numbers of sub-locations.

It will be noted that the most successful in terms of targeted sub-locations versus awards made were Marsabit, Kwale and Bungoma (100%), followed by Wajir (63%) and Narok (57%).

2.1.2     Education Broadband Connectivity Projects and Implementation Status

The ICT Access Gaps study identified a national gap in access to broadband connectivity for the education sector.
In implementing the schools connectivity project, the Authority has partnered with the Ministry of Education Science and Technology (MoEST) through a Memorandum of Understanding (MOU) to provide broadband connectivity to all secondary schools in Kenya.

The first phase of the Education Broadband Connectivity project has been designed to provide 5Mbps dedicated Internet connectivity to 896 secondary schools identified by the Ministry of Education Science and Technology spread across all the 47 counties. The project targeted to connect up to 1,000 schools but MoEST provided only 896 secondary schools drawn from all the 47 counties in Kenya that met the Internet e-readiness criterion.

Secondary schools designated as ?Internet-ready: for the purposes of this project shall be those certified by MoEST as meeting the following criteria:
              i.         Connected to the Grid / electricity;
             ii.         A secured computer laboratory with working computers;
           iii.         A qualified ICT / computer teacher;
           iv.         Offering students the KCSE Computer studies curriculum and submission of students for KNEC examination at Form 4 in 2015 and/or 2016.

Implementation Status / Achievements

The Authority advertised the Tender for the Education Broadband Connectivity Project. This was an ?Open Tender? to all licensees contributing to the USF levy. The tender was grouped into 9 lots and the tender closed on 19th October 2016?. The tender has been awarded to three (3) bidders at total cost Kshs. 837 Million.

Based on the data from the Ministry of Education Science and Technology (MoEST) Kenya has about 7000 secondary school.  The Authority is connecting 896 Secondary school to Broadband within the current financial year.  Subsequently, the Universal Service Fund will be used to connect all the remaining secondary schools.

STATUS OF 4G COVERAGE

The Authority has issued LTE spectrum in the 800MHz on trial basis to the three (3) Mobile Network Operator i.e Safaricom Ltd in 2014, Airtel Ltd and Telkom Ltd in 2016.

Safaricom Limited has so far rolled out the 4G network in the following five (5) major towns i.e Nairobi, Mombasa, Nakuru, Kisumu and Eldoret while the other two operators are preparing to commence their 4G network roll.

Annex 1:  Voice Infrastructure Project ? Financial Year 2016/17
LOT

COUNTY LOT NO.

COUNTY

WARD

SUBLOCATION

UNSERVED POP?N

MAX. SUBSIDY (KSHS)

B1

B2

202

697,971

2,362.011

1

BAR-3

BARINGO

MUKUTAN

MUKUTANI

1,284

   7.940

15,720,000

BARINGO

MUKUTAN

ARABAL

1,471

2

BAR-6

BARINGO

TIRIOKO

NGORON

1,501

18.139

BARINGO

TIRIOKO

KULAL

3,021

3

BAR-7

BARINGO

TIRIOKO

LOKIS

2,445

15.720

BARINGO

TIRIOKO

NGAINA

2,516

WEST POKOT

MASOOL

CHEPSERUM

1,386

8

BUNG-1

BUNGOMA

CHEPYUK

KORN'GOTUNY

1,886

17.763

17,762,999
(13)

17,763,000

BUNGOMA

CHEPYUK

CHEPKURKUR

3,285

BUNGOMA

CHEPYUK

EMIA

1,452

BUNGOMA

CHEPYUK

KUBURA

3,890

BUNGOMA

CHEPYUK

CHEPYUK

5,467

BUNGOMA

CHEPYUK

KAIMUGUL

5,709

12

GAR-7

GARISSA

GOREALE

GOREALE

4,523

   32.389

32,389,000

14

GAR-2

GARISSA

SANGAILU

HANDARO

5,102

   24.120

24,119,999

18

IS-3

ISIOLO

GARBATULLA

MALKADAKA

3,632

24.860

24,859,999
(16)

24,860,000

19

IS-4

ISIOLO

KINNA

KULAMAWE

3,532

28.595

28,594,999
(4)

28,595,000

26

KAJ-7

KAJIADO

KEEKONYOKIE

KISAMIS

2,429

28.929

28,928,999

KAJIADO

MOSIRO

EMBARBAL

2,429

29

KAJ-10

KAJIADO

MAGADI

ENDOINYO-OLASHO

1,728

43.669

41,485,549

KAJIADO

MAGADI

OLOIKA

1,744

KAJIADO

MAGADI

PAKASE

3,377

KAJIADO

MAGADI

SHOMPOLE

2,085

30

KIL-2

KILIFI

SOKOKE

NDUGUMANI

1,123

7.169

7,168,999

KILIFI

SOKOKE

MWANGEA

1,215

KILIFI

JILORE

MKONDONI

1,572

33

KIT-3

KITUI

ENDAU/MALALANI

MALALANI

2,136

55.354

      55,353,999

KITUI

ENDAU/MALALANI

MAKUKA

2,033

KITUI

NUU

MALAWA

4,352

KITUI

KANZIKO

ILAMBA

1,467

37

KIT-5

KITUI

NGOMENI

KIMELA

2,161

12.222

12,221,999

38

KW-1

KWALE

PUMA

BUSA

7,323

123.377

123,377,000

KWALE

PUMA

VIGURUNGANI

3,244

KWALE

NDAVAYA

MWANDIMU

8,925

KWALE

MACKINON ROAD

KILIBASI

1,139

KWALE

MWERENI

KASEMENI

3,060

KWALE

MWERENI

KILIMANGODO

10,848

41

MAN-1

MANDERA

KOTULO

EL RAMU

9,165

17.990

17,989,999

42

MAN-2

MANDERA

KOTULO

BORJI GARSE

3,525

15.212

15,211,999

MANDERA

KOTULO

KUTAYU

3,447

44

MAN-5

MANDERA

WARANKARA

WARANKARA

9,387

13.200

13,199,999

47

MAN-4

MANDERA

TAKABA SOUTH

WANGAI DAHAN

10,763

16.760

15,921,999

48

MARS-2

MARSABIT

KARARE

SCHEME

1,530

33.111

33,110,999

MARSABIT

KARARE

KARARE

2,576

MARSABIT

KARARE

SONGA

1,084

MARSABIT

KARARE

KITURUNI

1,230

MARSABIT

SAGANTE/ JALDESA

BADASA

1,204

49

MARS-3

MARSABIT

DUKANA

BALESA

4,661

48.554

48,553,999

MARSABIT

DUKANA

EL-HADI

3,051

50

MARS-1

MARSABIT

LAISAMIS

NDIKIR

1,814

65.669

65,669,000

MARSABIT

KORR/NGURUNIT

NGURUNIT

3,728

MARSABIT

KORR/NGURUNIT

LONYORI PICHAU

3,015

SAMBURU

NDOTO

ILLAU

1,017

SAMBURU

NDOTO

NGURUNIT

1,611

53

NAR-3

NAROK

MAJI MOTO/ NAROOSURA

MAJI-MOTO

1,251

9.145

9,144,999

54

NAR-4

NAROK

MAJI MOTO/ NAROOSURA

ELANGATA ENTERIT

3,831

25.722

25,721,999

NAROK

MAJI MOTO/ NAROOSURA

ENKUTOTO

4,568

57

NAR-7

NAROK

LOITA

OLNGARUA

1,499

69.787

69,786,999

NAROK

LOITA

OLORTE

3,114

NAROK

LOITA

MAUSA

3,575

NAROK

LOITA

ENTASEKERA

3,231

NAROK

LOITA

OLMESUTIE

2,031

62

SAM-4

SAMBURU

NYIRO

LONJORIN

2,164

22.229

22,228,999

SAMBURU

NYIRO

LKAYO

3,581

68

TKN-7

TURKANA

KERIO DELTA

NAKURIO

9,426

56.435

56,434,999
(9)

56,435,000

TURKANA

KERIO DELTA

NAKORET

5,155

70

TKN-11

TURKANA

LOIMA

PUCH

12,002

59.938

59,937,999
(14%Coverage)

Rejected

72

TKN-12

TURKANA

TURKWEL

KAPUS

8,320

26.167

26,167,000

73

TKN-9

TURKANA

KOTARUK/LOBEI

NAIPA

4,207

19.160

19,160,000

TURKANA

KOTARUK/LOBEI

LOKIPETOT ARENGAN

4,861

75

TKN-19

TURKANA

KIBISH

KARACH 1

5,502

29.603

29,602,999
(26% Coverage)
Rejected

TURKANA

KIBISH

KAITEDE

6,333

76

TKN-13

TURKANA

LETEA

LOKIPOTO

18,956

18.451

18,450,999
(61% Coverage)
Rejected

79

TKN-17

TURKANA

LOPUR

LOPUSIKI

3,947

104.377

104,376,999

TURKANA

SONGOT

LOKUDULE

3,216

TURKANA

SONGOT

LOKANGAE

11,599

81

TKN-2

TURKANA

LOKORI/KOCHODIN

KANGITIT

4,794

81.124

81,123,999
(67% coverage)
Clarification

TURKANA

LOKORI/KOCHODIN

LOTUBAE

22,129

TURKANA

KAPEDO/NAPEITOM

NGILUKIA

4,356

82

TKN-4

TURKANA

KATILIA

KATILIA

9,513

223.315

212,149,249
(60% coverage)
Clarification

TURKANA

KATILIA

PARKATI

11,455

TURKANA

KALAPATA

KALAPATA

10,869

TURKANA

KALAPATA

LOPEROT

7,344

84

TKN-1

TURKANA

KAPEDO/NAPEITOM

NADOME

3,653

24.684

24,683,999

85

TKN-6

TURKANA

LOKICHAR

NAPOSUMURU

6,034

25.6

25,600,000

87

WAJ-6

WAJIR

BATALU

BUNA

3,465

51.493

51,492,999

WAJIR

BATALU

KUROW

3,129

89

WAJ-2

WAJIR

KHOROF/HARAR

RIBA

11,042

50.496

47,971,199

91

WAJ-5

WAJIR

ELBEN

MANSA

12,247

87.429

87,428,999

WAJIR

SARMAN

DUNTO

10,733

92

WAJ-4

WAJIR

ELDAS

KILKILEY

4,107

47.673

47,672,999

WAJIR

ELNUR/TULA TULA

LAKOLE

9,066

98

WPOK-6

WEST POKOT

CHEPARERIA

SHALPOGH

4,248

5.841

5,841,000

99

WPOK-11

WEST POKOT

ALALE

APUKE

1,442

24.696

WEST POKOT

KIWAWA

LOPET

2,300

TOTAL

1,182,081,961

385,141,000

Annex 2:  Counties and number of Internet-ready Schools to be connected in 2016/17
Lotting of the Counties and number of Internet-ready Schools

Lot 1:

Lot 2:

Lot 3:

Lot 4:

Lot 5:

Lot 6:

Lot 7:

Lot 8:

Lot 9:

County

Sch

County

Sch

County

Sch

County

Sch

County

Sch

County

Sch

County

Sch

County

Sch

County

Sch

Garissa

3

Mandera

7

Wajir

4

Samburu

3

Marsabit

4

Turkana

4

W. Pokot

7

Baringo

10

Narok

10

Tana River

2

Nairobi

39

Isiolo

4

Laikipia

11

Meru

 19

Elegeo Marakwet

10

Trans-Nzoia

18

Kericho

21

Migori

11

Lamu

5

Murang'a

35

Tharaka Nithi

14

Nyandarua

5

Embu

24

Uasin Gishu

17

Bungoma

54

Kisumu

23

Homa Bay

15

Kilifi

13

Kajiado

8

Kitui

31

Nakuru

35

Nyeri

29

Kakamega

55

Busia

24

Vihiga

20

Siaya

24

Mombasa

12

Makueni

26

Kiambu

45

Kirinyaga

22

Nandi

 28

Bomet

10

Kisii

24

Kwale

7

Taita. Taveta

14

Nyamira

20

Machakos

69

Sub-total

111

89

93

99

99

114

103

84

104

TOTAL NO.
SCHOOLS

896

Regards,

Rachel Alwala
Assistant Director/Communications and External Affairs
Communications Authority of Kenya
PO Box 14448
Nairobi 00800

Tel:  +254 703042000
Email:  alwala at ca.go.ke<mailto:alwala at ca.go.ke>

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