New licensing rules from regulator the Communications Authority of Kenya (CA) are expected to financially impact distributors of terminal electronic devices and complex network equipment as well as satellite internet service providers (ISPs).
Plans for a new licence, called the Telecom Equipment Distributor (TED) licence, which is aimed at limiting counterfeit electronics, will mean that distributors of terminal electronic devices and complex network equipment will need to apply for a licence by paying KSh5,000 (about US$38.58).
But that’s not all. There will also be a licence fee set at KSh250,000 (US$1,929), renewable after 15 years, and an annual operating fee charged at 0.4% of turnover or a minimum of KSh120,000 (US$926).
There certainly does seem to be an issue with fake mobile phones in Kenya (up to 40% of phones in the market could be fake according to CA in February last year). Under the new licence, violators will face fines of up to KSh300, 000 (US$2,315).
The CA has already introduced a web-based platform that enables Kenyans to ascertain the validity of their device brands. An attempt to require individuals (eventually specified as only Kenyan citizens entering the country) to declare the International Mobile Equipment Identity (IMEI) numbers of their devices was suspended after data privacy concerns were expressed.
The CA has also introduced a proposal to significantly increase the 15-year licensing fees for satellite ISPs from $12,302 to $115,331. Again the proposed new rules also include an annual levy of 0.4% of gross turnover.
It’s also important to add that the proposal includes progressive elements, such as allowing satellite ISPs to engage in terrestrial cable operations, telemetry and even space research.
However, demand for high-speed internet is surging in the country, especially in underserved and rural areas where satellite ISPs play a crucial role, and there are fears that this proposal, which the CSA says aims to ensure fairness and regulate the growing satellite ISP market, may limit competition and innovation.
Of course it’s not yet clear how close either proposal is to becoming law, so there may be some adjustments before both are formally introduced.
