By Jacinta Wothaya
The Communications Authority of Kenya (CA) is set to release a revised spectrum pricing framework this July, marking a significant development for the Kenyan telecommunications industry.
This revision comes after a comprehensive review process undertaken by CA in 2023, highlighting their commitment to keeping pace with evolving market trends and international best practices.
Why the Update?
According to the authority, the current radio spectrum pricing schedule doesn’t reflect the current reality of the telecommunications landscape:
The last decade has seen rapid development in the industry, with new technologies like 5G demanding different spectrum allocations and usage patterns. The authority affirms that the new pricing model will consider these advancements to ensure efficient allocation and encourage investment in next-generation technologies.
In addition, there has been increased competition in the market and new players have entered the field which necessitates a new fairer pricing model to foster healthy competition by all operators that benefits consumers. CA also noted the need to revise the pricing fees in line with the current industry best practices and comments received by current operators.
A Multi-Stakeholder Approach
Commendably, CA adopted a transparent and inclusive approach throughout the review process. The authority consulted with experts to conduct market analysis and international comparisons through a data-driven approach.
Additionally, the authority conducted thorough stakeholder consultations between October and November 2023, collecting comments from current operators on areas where they wanted improvement.
Finally, the Authority invited stakeholders to review the consultation’s interim report and comment on the proposed pricing schedule.
KICTANet was part of this multistakeholder workshop and noted the following key recommendations for the current pricing model:
- Should facilitate increased access to content, especially for local language and cultural programs
- Should increase the efficiency of Spectrum use. The pricing model should encourage operators to utilize the most recent generation of broadcast technologies to reduce congestion in some bands.
- Should consider the entry of small and medium-sized companies and create an environment for healthy competition with dominant license holders.
What to Expect?
CA assures the community that it will consider all comments especially those from license holders and will release the new spectrum fee schedule in July 2024.
This is a positive step for the industry and is anticipated to encourage investments in expanding network coverage and new technologies, ultimately leading to improved services and connectivity for Kenyans.
Ms Jacinta Wothaya is the KICTANet Digital Resilience Fellow.
