Work on Bill to cut Internet, business costs begins
Workers lay fibre optic cables in Nairobi. The national infrastructure project aims to improve Internet access for businesses and e-government services. PHOTO | FILE
What you need to know:
Key proposals . Proposed infrastructure Protection Bill to harmonise existing pieces of law and create new ones. . Bill proposes to hold motorists liable for infrastructure damage after accident. . Seeks to compel contractors to put up utility ducts during the building of roads for telcos and power suppliers.
The private sector and the government last week started working on a Bill that if enacted would help reduce the cost of doing business by driving the Internet charges down further.
The Infrastructure Protection Bill, which is being developed by the ministries of Information, Energy and Transport intends to harmonise the existing pieces of legislation from the various ministries and bring others on board.
The 12-member task force is chaired by the Airtel Africa group regulatory director Alice Kariuki. Other members of the team include MTN Business Kenya managing director Tom Omariba, Silas Kinoti and Patrick Mwinzi.
In the first meeting, telecoms infrastructure operators led by MTN Business and Frontier Optical Networks (FON) spelt out the inputs they want included in the Bill, such as compensation for relocating their facilities when a new road is being constructed and heavy penalties on cable vandals.
Mohamed Jama, FON managing director, said his firm spends between Sh20 million and Sh40 million during relocation of its fibre network when a major road upgrade is being undertaken.
“The cost of Internet in the country cannot come down at the moment if the cost of operation remains high,” Mr Mohamed told the Business Daily.
He said low cost of maintenance and putting up ICT infrastructure would help reduce Internet charges. This, he added, would not only increase the access of broadband services but also reduce the cost of doing business in the country.
The Bill proposes a motorist who destroys road or rail infrastructure through accidents due to speeding be held liable and meet the cost of repair.
It also seeks road contractors to put in place utility ducts during the building of infrastructure to avoid multiple digging on the roadside by telecoms or electricity service providers.
“What is happening now is that whenever there is road construction taking place, telecommunication providers, are asked to relocate their infrastructure at own cost. However, we are now proposing that how such costs will be met and any other compensation be addressed in the Bill,” said Mr Jama.
High access fees charged by county governments and property owners were also cited as some of the factors contributing to high operational costs.
Market surveys show that property owners or their agents are demanding between Sh21,000 to Sh300,000 a month to give service providers access to their buildings and mount telecoms equipment. Counties have also not spared telcos this anguish.
Mombasa, for instance, charges Sh100 per metre of cable laid out through its way leaves while Nanyuki town in Laikipia County has set a Sh600 fee. Nairobi, which has attracted most of the investments, charges Sh20 a metre.
ICT secretary Fred Matiang’i said landlord and estate agency demands were against the push by policymakers to bring down the cost of connectivity for larger Internet uptake.
Mr Omariba said addressing the losses service providers incur would also increase penetration of ICT services across the country.
“The amount of money we are currently spending on repairs and relocation of our infrastructure will now be used to expand the services across the country,” Mr Omariba, who is also the governor of the ICT Sector Board of Kenya Private Sector Alliance, said.
Previous proposal by the Kenya National Highway Authority (KeNHA) that roads have telecoms ducts to be shared by service providers has not been implemented.
The absence of a working formula between KeNHA and the telcos has seen the service providers identify road contractors and furnish them with their cable maps to guide construction works. However, the telecoms operators said, the contractors ignore the maps, disrupting Internet services with frequent destruction of fibre optic cables.
The proposal is in line with the government’s National Broadband Strategy, which among other things, seeks to reduce the cost of doing business by ensuring that operators share their infrastructure.
The government is also keen to boost the uptake of quality Internet as it moves to roll out e-government services such as tele-presence facility that links the Nairobi Court of Appeal to other courts, among other agencies.
The other proposal to categorise ICT as a high-energy user and create special tariffs and rebates on power is expected to reduce the cost of doing business.
“Every year we lose between Sh1.5 billion and Sh2 billion as direct losses coming from damages on power transmission lines, transformers, and fibre optic cables cuts, this is what we want to address by the Bill,” said Dr Matiang’i.
