Listed integrated telecoms operator Safaricom has welcomed Communications Commission of Kenya's (CCK) move to lower key license and frequency spectrum fees charges, terming it a major boost to investment in the sector.
Thursday, CCK announced a major review of the license and spectrum fee regime for the telecoms sector in Kenya. Under the new schedule which is set to come in to effect in July 2012 annual license operating fees for mobile operators will go down from 0.5%to 0.4% of annual gross turnover. Also going down are fees for mobile wireless access with reductions of up to 41% for the transmitters and 24% for fixed links and the introduction of geographical zoning which will address the sparsely populated areas, resulting in further reductions of 50% in charges for resources used to cover these areas.

" This is a significant development which will go a long way in reducing the overall cost of conducting telecoms business in Kenya,. With this step, the CCK has signaled its pro-investment stance and on our part it will certainly support our already aggressive network investment plans," said Safaricom's Corporate Affairs Director Nzioka Waita.

He thanked the CCK for taking into account the views of the industry which has been asking for a rationalization of the license and spectrum fees. High charges for these two items had remained a major barrier to entry in the industry, bottling up investment in one of Kenya's fastest growing sectors.

"Reasonable regulatory costs, particularly frequency fees will enable operators to cover the last mile much faster and deepen penetration, bringing the benefits of modern technology to more of our people. We hope that this will be the first of several reviews that the CCK will undertake to create the necessary stimulus in the sector," added Waita.

This is the first time the CCK has reviewed the license and spectrum fees since 2000. The regulator has promised another review in three years, as it seeks to improve access and penetration, especially in rural, under-served areas.