Communications Authority of Kenya

Licensing Trends, Status and Modification of

Licences

Content

• Licensing Framework• Sector Outlook• New Developments in the Industry• Licence Modifications• Way Forward

Licensing FrameworkSERVICE LICENCE

Internet service Internet Service Provider (ISP)

Premium Rate Services Premium Rate/Value Added Services Provider (PRSP/VAS)

Data Services Public Data Network Operator (PDNO)

Satellite Services Commercial VSAT Operator (CVO)

Internet Back bone Services

Internet Backbone Gateway Operator (IB&GO)

Voice Service Mobile/Fixed line Operator

SMS service Mobile Operator

……….. ……………

PAST- Technology Specific

PRESENT - Technology Neutral

FUTURE

Transitional Provisions

Market Outlook

Service Providers

Market Outlook Cont’d

Network Facilities Providers - 44

Submarine Cable Landing Right Licences - 3

The Role of Licensing

• Economy– Promote investment– Promote competition through multiple players– Job creation

• Consumer– Provide consumers with a wide variety of choice – Competitive pricing of products and services

New Market Developments

New Market Developments

Licences Affected By Modifications

• Application Service Providers• Content Service Providers• Network Facilities Providers• International Gateway Operator• Submarine Cable Landing Systems Operator

Objectives Of Modifications

• Align the licences with the prevailing legal and regulatory framework

• Address challenges (industry and regulatory) experienced in the past

Section 82 of Kenya Information and Communications Act, providing for modification of any licence conditions issued under the Act from time to time

Areas of significant modifications in the licences

1. Network Facilities Provider-T3• Change of administrative

boundaries from district/province to county

• Change of geographical boundary in compliance with new constitution – county boundaries

2. Penalties• Apply to terms, conditions or

directive(s) • Minimum Kshs 500,000 and a

max of 0.2% of annual gross turn over

• Factors for proportionate application included in the licence term

3. Collocation of Infrastructure

•No exclusive agreements with building owners•Provision of adequate space for sharing by first entrants where possible

4. Numbering

• Origination and termination of calls/numbers outside numbering plan

• Configure the national emergency numbers and deliver free of charge emergency traffic generated on own network to Public Emergency Service Providers

5. CSP Interconnection• CSPs treated as interconnection partners• NFP-T1 recognizes CSPs Platforms for connection• Its about;– Parity treatment of licensees– Customers

6. Suspension of Operations

COMPLIANCE REVOCATION

SUSPENSION

7. Transitional Provisions

Technology and Service Specific

Licences

ULF Licences

Issuance of appropriate licence Market based spectrum allocation Application and issuance of appropriate

licence for unsuccessful licensees

8. Interest on Delayed Payment of Fees

• Annual fees to be paid within 90 days• Delayed payments an audit query• Delay attract 2% interest per month as;– Clear audit queries – Deterrent for borrowing without

consent

9. Subscriber Management

Plan to ensure smooth migration of customers to another licensee for seamless service continuity

In case of;1.Non renewal of licence2.Licence revocation3.Bankruptcy

Licensee to provide a plan for service continuity for its customers

10.Mobile Network Coverage

Milestones on Modification Process

17th Oct to 7th Dec 2014

Jan 2015

March 2015May 2015

June 2015

July 2015

COMPLETEProgress

Way Forward….?• Issuance of new licences to all licensees under;– Unified Licensing Framework– Old Licensing Framework

• Compliance with licence conditions to be a prerequisite

• Window period is 6 months (1st July to 31st December 2015)

• Licensees to make effort (achieve compliance) to obtain the new licences

• January 2016 – all licensees to have new licences

Failure To Obtain New Licences….

• Constitute and/or imply non compliance

Challenge

• Know your licence terms and conditions

• Know the licence terms and conditions of your business partners

Thank you