CCK in threat to regulate prices

Internet prices are set for regulation in two months time if providers do not reduce their costs, the Communication Commission of Kenya has said.

Dr Bitange Ndemo, permanent secretary ministry of Information and Communications, said it is suspicious that internet costs remain high despite changes in the last few months.

“We are investigating whether there is collusion among operators to fix prices,” Dr Ndemo said when officiating the Mobile Web East Africa conference on Wednesday.  

Action

He added that last year, the CCK could only ask operators to reduce prices without taking much action, but with the new communication regulations it now has the power to intervene when it sees anti-competitive tendencies.

“The regulations give us power to intervene when there are oligopolistic business behaviours among operators and there will be major interventions in the next two months,” he added.

There has been an outcry from internet users over the non-reduction of prices even after two undersea fibre optic cables — the government fronted East African Marine Systems (TEAMS) and private venture, Seacom — went live.

When the fibre-optic cables landed at the coast, there was high expectation that it would lead to efficient and cost-effective internet connectivity, but many consumers are yet to see any serious changes.

Dr Ndemo also spoke on the increasing incidents of cable vandalism, saying reports that operators were sabotaging each other will be dealt with even if it meant cancelling of licenses as the law states.
Sabotage

“Economic sabotage has greatly affected mobile telephony in Kenya and will be dealt with,” he said.

The PS recommended sharing of infrastructure to reduce the problem and called on local authorities to construct metro fibres within towns and lease them out to operators.