All must pay for 3G, Safaricom insists
If the Communications Commission of Kenya decides to reduce or scrap the third-generation (3G) spectrum fees, then it will have to credit what we paid. That was the stern message from mobile phone service provider, Safaricom, setting the tone for wrangles surrounding payment of $25 million.
Mr Michael Joseph, Safaricom chief executive, responding to pleas from other operators for the CCK to reduce the licence fees, said the review should apply across the board as all operators must be treated equally.
“We knew what 3G network meant; while some shied away, we were the only ones who stepped up the game when it was advertised by CCK in 2007,” Mr Joseph said when he presented cheques of Sh100,000 each to 25 winners of the Mauzo Bam Bam promotion.
The CEO said that since 3G is a superior network, the firm is increasing its coverage across the country, adding more sites from the current 500.
A petition to CCK to reduce the fees failed after the regulator insisted that the $25 million fee would continue to apply to all firms acquiring a 3G licence. “The fee is applicable equally across the board,” CCK said early this month.
On Wednesday this week, Telkom Kenya continued to pile pressure on CCK to reduce the spectrum fees, which the firm’s chief executive, Mr Mickael Ghossein, termed “unreasonably high” for a growing market.
The firm, operating under the Orange brand, began testing a 3G network in the capital of Nairobi in December. Third-generation services allow web access at broadband speeds that enable faster file downloads and email services.
Zain is reported to have paid for the fee and is planning to roll out the network this year, while the fourth operator yu, also hinted at plans to join the 3G roll out fray last year.
On claims of declining network quality even though the firm has a 3G network said to be more superior, Mr Joseph said the company had been replacing its old network equipment — installed about nine years ago which has been interrupting the service.
Until now, he said they have replaced 50 per cent of the equipment and the rest will be finalised by end of February. He said problems started in the third quarter, but the network will be normal towards the end of February when the firm would have replaced all the equipment.
