The communications industry regulator has flagged internet service providers (ISPs) operating illegally in the country amid a spike in demand for internet services.
According to the Communications Authority (CA), most of these illegal ISPs use technologies on licence-free frequency bands in order to operate without the necessary regulatory approvals.
Demand for internet services in Kenya has peaked amid a rise in remote working, online learning, and e-commerce as fringe ISPs enter the country to grab a share of the market which is dominated by Safaricom.
“The Authority has observed a growing increase in unauthorised ISPs across the country. Most of them have deployed their networks using wireless technologies on licence-free frequency bands intended for industrial, scientific, and medical applications (ISM),” CA says.
“These illegal ISPs generally operate in limited and localised areas, especially in densely populated estates, and do not have the extensive coverage that NFP-T3 (Network Facilities Provider tier 3 Licence) licensees possess.”
CA did not, however, disclose the names of the ISPs that are operating illegally in the country as the battle for a share of the fast-growing demand for internet services by businesses, households and learning institutions hots up.
NFPs refer to firms that have been licensed by CA to build and commercially operate telecommunications or electronic communications systems in the country. NFPs are categorised as Tier One, Two, and Three depending on the services they provide.
Safaricom is currently the biggest player in the Kenyan fixed internet market with 36.4 percent of the market or 545,812 connections as of June 2024, followed by Jamii Telecommunications at 24 percent or 360,446 subscriptions. Wananchi-owned Zuku is third at 17.5 percent (263,008 connections).
The growing number of ISPs in the country has offered customers with pricing discounts as the firms battle to retain existing customers and tap new markets.
But it (rise in the number of ISPs) has also come with poor quality of service from most of the firms offering low prices, especially in the low-income areas and satellite towns of Nairobi.
Some of the local service providers that have entered the market in the past two years include Vilcom, Poa Internet and Vijiji Connect.
But it is the entry of Starlink, which is owned by world’s richest man Elon Musk, that has stirred a debate about the regulation of firms entering Kenya to provide satellite-based internet services.
Safaricom has made several unsuccessful attempts to get the CA to compel Starlink to jointly offer its services with local firms.
Starlink entered Kenya in 2023 and had by June 2024 hit 8,063 connections, representing 0.5 percent of the market.
CA says that Starlink’s entry has been key in driving the number of satellite subscriptions in the country to 8,324 as of June 2024.
“As of 30th June 2024, total fixed data/Internet subscriptions experienced growth driven by increasing reliance on digital platforms for work, education, healthcare, and entertainment, along with attractive tariffs and special offers from service providers,’ CA said in a review of the telecommunications industry for the year ended June 2024.
