Counties’ Internet licence opens doors for small firms

Communications Authority of Kenya director-general Francis Wangusi. FILE PHOTO | NMG

What you need to know:

  • Using county-based infrastructure providers has also been proposed in the draft wireless broadband policy, a document authored by the Ministry of Information.

The telecommunications industry regulator is planning to licence county governments to roll out Internet infrastructure in a move expected to help bridge the digital divide between rural and urban areas.

Communications Authority of Kenya director-general Francis Wangusi in an interview said the county licensing regime would also accommodate private companies.

This infrastructure will in turn be leased out to Internet Service Providers, thereby cutting the costs they would have incurred in expanding their networks to underserved areas.

“The context of county service providers is intended to encourage quick roll out of broadband in county areas. It may include the county governments themselves,” said Mr Wangusi.

Using county-based infrastructure providers has also been proposed in the draft wireless broadband policy, a document authored by the Ministry of Information.

That document envisions that county-based service providers will be licensed to offer last mile broadband access. The draft policy lays out a strategy for managing and sharing spectrum efficiently.

While the document proposes that market forces and consideration of the public good should drive spectrum allocation, there are suggestions that some institutions, such as those dealing in disaster relief, should be exempted from paying fees.

Telecommunication licensees pay hefty spectrum fees to the authority, contributing over 50 per cent of its revenue.

The draft policy also seeks to increase competition in the sector by making it easier for small companies to acquire spectrum licenses.

The CA statistics indicate that Internet penetration in Kenya stood at 89.4 per cent in the quarter to March 2017.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.