State to withhold licence for 4G frequency rollout
The Long Term Evolution Technology, commonly known as 4G, offers subscribers access to mobile internet at much faster speeds.
The government says it will not give companies rights to roll out 4G frequencies, blocking plans by telecoms to migrate subscribers to the more reliable internet bands.
It will instead call for a public-private partnership by the end of the month to create a universal access system available for all telecoms, saving them millions of shillings in licensing fees.
The Long Term Evolution Technology — commonly known as 4G —offers subscribers access to mobile internet at much faster speeds, making it a cutting edge tool for companies offering their services on the medium.
New system
It will be the first time that a joint ownership for the spectrum will be tried after licences for 3G were issued for a fee, raising queries over what fees should be applied to late entrants.
Information Permanent Secretary Bitange Ndemo said the new system would address the scarcity of spectrum, bridge the rural urban digital divide and create a level playing ground for operators, who would pay a service fee to those who invest in the technology.
“We have close to 19 operators lined up for this kind of frequency which can only accommodate three operators if we use the old model to allocate it,” said Dr Ndemo.
The investors will have one year to roll out the conduit, he said, with more frequencies being freed by government agencies that hold them.
The government’s move comes at a time when the mobile operators are shifting their focus to data, with competition in the voice segments getting stiff and revenue starting to show a declining trend following tariff cuts that have in the new past gone down by 50 per cent.
It also comes at a time when Zain Kenya and Orange are doing trials for their 3G network while Safaricom is upgrading the 3G to LTE in a move aimed at upping the game for its rival in anticipation of competition as they roll out the 3G services.
Currently, it is only Safaricom that has rolled out this technology that enables internet users to down load much heavier files while on the move, giving it an edge over its competitors.
Safaricom is currently doing its trial for the Long Term Evolution (LTE) technology (4G) using its available frequency as an upgrade to the current third generation technology (3G) . It is using to offer faster mobile internet with anticipation of commercialising once convinced that it is commercial viable.
Statistics from the industry regulator, the Communication Commission of Kenya, indicates that only 10 per cent of the Kenya population have access to broadband connectivity.
Safaricom’s roll out of the next generation LTE will be carried out by Huawei Technologies company from China under a Sh12 billion three -year strategic partnership.
