Communications Regulations guide licensing of communication services in
Kenya.
Section 24 of the KCA states that: "No person shall operate a telecommunication
system or provide any telecommunication service except in accordance with a
valid licence granted under the act".
The sector policy provides for the licensing of Internet node and backbone
services and value added services (hereinafter referred to as VAS) for example,
electronic mail, voice mail, store and forward fax, Internet services provision,
video conferencing, Electronic Data Interchange among other services.
Regulatory Provisions
Guided by the provisions of the KCA and the sector policy the Commission in
1999, licensed TKL to provide several services including Internet node and
backbone and VAS. The VAS licence granted to TKL provides rights "to offer
value added voice and data services defined as all telecommunication services,
not including basic voice services to the public, telex and telegraph services,
either mobile or fixed and is authorised by this licence, to provide the services in
Kenya".
Additionally the Commission granted TKL a licence to provide International
Internet Backbone services for a five (5) year term commencing from the July
1999. The licence is renewable for further five (5) year terms subject to
compliance with the terms of the licence among other factors.
TKL's Jambonet licence limits the connection of the international Internet
backbone to ISPs only. Reference to condition 4:"International Data Gateway
Links: The Licensee should make international data gateway access available to
ISPs, on a first come-first served, non-discriminatory and tariffed rate basis"
Condition 4 of the licence, as quoted below, also provides for the licensee to
operate an ISP under a separate licence.
"If Licensee offers Internet Services to the public under an ISP license, the cost of
the associated Internet Backbone Service shall be reflected in the ISP company's
books at a rate no lower than the rate it charges to its most preferred ISP
customers."
From an analysis of pricing for Internet access using ADSL presented by ISPs, a
disparity in pricing is evident taking into consideration the cost associated
elements of Internet access, local loop and costs relating to provisioning,
administration, marketing, maintenance and the margin contribution.
Market structure
The Commission in 2002 developed the Telecommunication market structure
guided by the sector policy; clarifying the various categories of licences and