Joseph Bonyo
21 October 2009
Nairobi — The roll out of 3G (third generation) networks by mobile telephone service providers is anchored on the revision of the existing spectrum of licensing costs.
According to Zain Kenya managing director Rene Meza, the current fee paid to the government prohibits other operators from using the network.
"We hope that the spectrum costs can be reviewed downwards to allow other players roll out the network," Mr Meza told journalists on Wednesday.
For a service provider to roll out the 3G-network platform, it is required to pay an estimated Sh2 billion ($25 million) fee to the Communications Commission of Kenya which is the industry regulator.
Of the four mobile firms, only Safaricom is operating on the platform having received its licence in October 2007.
Last November, another provider Essar Telkom Kenya Limited, announced similar plans but is yet to go live on the network.
"Zain Kenya has formally made applications to the commission for a licence. We are optimistic to get it and roll out within the first half of next year," said Mr Meza.
The 3G network has been underscored by global telecoms as pivotal to provision of efficient services of both voice and data.
In Kenya, operators are currently beefing up their data portfolio as it is now considered the next revenue growth frontier.
The landing of fibre optic cable in Kenya has further increased competition on data provision.
All leading service providers boast of connectivity to the undersea cable aimed at faster and cheaper internet access.
Mr Meza spoke during the launch of a two-month promotional offer of free calls.
The within network calls and short messages will depend on the amount of airtime one tops up with.
"This initiative is as a result of a careful study of our customers' needs. It is an innovative service founded on our promise to extend the benefit of affordability and flexibility to our customers," he said.
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Every time Rene Meza speaks, he pokes an accusing finger at the competition. While I agree that the local communications licensing regime has been punitive and counter-productive to much needed investments, local players have nothing to do with it and have in fact been themselves victims of the same. In retrospection, Kencell and Celtel got it wrong when it comes to marketing. By the time the Renes showed up to attempt a Zain rebirth with offers like Unlimited Talk and Vuka it was three years too late. Having worked for both Zain and Safaricom I cannot help but draw parallels. Now Safaricom has Supa Ongea to continue to fool the market. Not even free call offers from the competition can dent its cult-like following. Marketing is politics.