The broadband mess in Kenya - and I’m so angry

Kenya is in dire need of investment in technology. That is why I am angry that the factors hindering growth are actually "policy" related to this sector, and not due to lack of innovators or investors. There are many innovators and investors willing to take the challenge of helping Kenya come out of the dark ages of narrowband and into the grace of broadband.

The problem rises from the differences between the Communication Commission of Kenya (CCK) and other 3G service providers. There seems to be a great cloud of varying information which hardly gets to the man on the street. The unclear issues include the following:

The Zain situation with the CCK

Though very confusing, The East African recently reported that they have only applied for a 3G licence but have not paid for it. However, some Zain insiders earlier claimed that they had paid and were in the process of testing.

Meanwhile, a couple of senior chairmen and CEOs I had the privilege of meeting with in a closed session also mentioned that they been informed that Zain had paid the fee. Every once in a while it is reported that the Zain connection knocks into 3G, and a couple of local techies have told me that they have hit 3G before both on their modems and handsets.

The Orange situation with the CCK

This is another saga that was recently clarified when Orange finally stated their position. They too find the US$25m (Sh1.9billion) 3G licence fee excessive.

The reason we have no alternative provider is because the fee is set too high. But why? Since there is no other obvious reason, short of greed, it seems to go back to two individuals and a long-term strategy by the Government.

Safaricom still dominates the market but not because of innovation. President Kibaki recently directed that number portability be executed by end of January 2010, although it now appears this will not happen until mid-2010. Worse, someone had earlier mentioned to me that even two years down the road we will still be in anticipation. I will not be surprised if this was some ambitious politician's manifesto come 2012. And even Prime Minister Raila Odinga, instead of getting down to supervisory work, which is his real job, is busy flapping his gums about the Mau Forest and ODM policies, but not about what the Government is doing wrong.

The lack of ability to criticise Safaricom in media means we cannot complain about the poor service. Yet Michael Joseph, the Safaricom CEO, has been named CEO of the Year in Kenya.

Corporate cancer

The African leadership cancer goes beyond government and into corporates. But then again, in Safaricom's case, the corporate is in bed with the Government.

As it appears, we won’t have a new 3G service provider because Bitange Ndemo, the Permanent Secretary in the Ministry of Information and Charles Njoroge, the Director General at the CCK would prefer this not to happen, and if it must, that the competitors suffer in getting it. They also are not willing to look at alternative solutions to allowing other networks because Safaricom needs protection, to keep the money flowing in. Government protection. In the next two years, voice will probably be a dead business. Data will be the goose that lays the golden eggs – so that prohibitive $25m 3G fee is, one suspects, trying to protect the data for one company.

Zain, Yu and Orange’s alternatives

• Zain, Yu and Orange need to negotiate a better rate for the 3G licence and then finance a debt repayment on behalf of the CCK to cover the excess fee Safaricom paid.

• CCK keeps the same fee and work on a debt recovery management plan where they get percentages of incomes till the fee is covered, plus interest of course. The licence can be issued for free or at a deposit, and I believe CCK would have recovered the sums within five years.

• CCK refunds Safaricom the US$ 25m and we forget 3G. That way, no-one has it and it’s an even playing field.

Orange, is the beast that Safaricom is worried about. Funny, Orange is just about to get it right, and the only reason 99 percent of the country is not with Orange, is because it is yet to discover flat billing on data. This per MB rates they keep trying to sell on a sliding scale are so confusing and people would rather not buy. Orange is the only company that does not need to be greedy and they will get all the customers. But the greed is showing. The French owners are still French, and they bite. And they are greedy. They need to ease up.

Turning our backs on Ndemo

My point is, we need to isolate and openly ignore Bitange Ndemo who we openly allow into the tech fold (as his actions on media freedoms have shown, he is not a great believer in freedom of expression). Inviting him into Skunkworks meetings and conferences and other meet ups needs to stop. He needs to get the hint. I find it sad that we allow the same person who is ruining tech in Kenya to come in.

I find it sad that we, the tech community, have not stood up as one and said Enough! But we are Kenyans, the only things we know to unite around usually revolve around entertainment and even then, not for long. We have no common goals or agendas to developing tech in Kenya, we have united common wishes and ideologies, but we are not really out there turning wishes into goals. As for Charles Njoroge, well, I guess I’m glad I don’t run into him. I might say some unhappy words.

I hate the fact that my job now involves spending more time dealing with politics and struggling to get connections to work rather than working on projects. A good 80 per cent of my productive time is wasted because of these two individuals and I am getting fed up with losing ideas and time because of all this rubbish. So let’s begin showing our outrage by boycotting these two.