The document discusses licensing trends and modifications in Kenya. It provides an overview of the licensing framework, new developments, and key changes made to existing licenses. The major modifications include changing administrative boundaries to align with new county structures, strengthening penalties, encouraging infrastructure sharing, clarifying numbering and interconnection requirements, and adding conditions to ensure continuity of service for customers. The authority has completed a public consultation process and license modifications to align regulations with the changing industry and address past challenges.

1. Communica)ons
Authority
of
Kenya
Licensing
Trends,
Status
and
Modifica)on
of
Licences

2. Content
• Licensing
Framework
• Sector
Outlook
• New
Developments
in
the
Industry
• Licence
Modifica)ons
• Way
Forward

3. Licensing
Framework
SERVICE
LICENCE
Internet
service
Internet
Service
Provider
(ISP)
Premium
Rate
Services
Premium
Rate/Value
Added
Services
Provider
(PRSP/VAS)
Data
Services
Public
Data
Network
Operator
(PDNO)
Satellite
Services
Commercial
VSAT
Operator
(CVO)
Internet
Back
bone
Services
Internet
Backbone
Gateway
Operator
(IB&GO)
Voice
Service
Mobile/Fixed
line
Operator
SMS
service
Mobile
Operator
………..
……………
PAST-­‐
Technology
Specific

4. PRESENT
-­‐
Technology
Neutral
ASP
Voice
Data
Text
CSP
Informa)on
VAS
SMS
content
MMS
content
NFP
Fiber
PDNO
• IGBO
• VSAT
Satellite

5. FUTURE
Transi)onal
Provisions

6. Market
Outlook
273
161
0
50
100
150
200
250
300
2008
2009
2010
2011
2012
2013
2014
May-­‐15
Number
of
Licensees
Year
CSP
ASP
Service
Providers

7. Market
Outlook
Cont’d
Network
Facili)es
Providers
-­‐
44
Submarine
Cable
Landing
Right
Licences
-­‐
3

8. The
Role
of
Licensing
• Economy
– Promote
investment
– Promote
compe))on
through
mul)ple
players
– Job
crea)on
• Consumer
– Provide
consumers
with
a
wide
variety
of
choice
– Compe))ve
pricing
of
products
and
services

9. New
Market
Developments
• Electronic
Cer)fica)on
Services
providers
(E-­‐CSP)
• Digital
Cer)ficates
• Similar
to
ASPs
licensing
process,
fees
• Slightly
different
in
requirements
and
majorly
in
Licence
Introduc)on
of
Addi)onal
types
of
licences
• Country
Code
Top
Level
Domain
(ccTLD)
• Domain
Name
administra)on
• Similar
to
ASPs
in
all
aspects
Cont’d

10. New
Market
Developments
• Registrars
(
Digital
Cer)ficates
and
Domain
Name)
• One
)me
registra)on
fee
• Business
Plan
an
excep)on
Cont’d
Modifica)on
of
ULF
Licences

11. Licences
Affected
By
Modifica)ons
• Applica)on
Service
Providers
• Content
Service
Providers
• Network
Facili)es
Providers
• Interna)onal
Gateway
Operator
• Submarine
Cable
Landing
Systems
Operator

12. Objec)ves
Of
Modifica)ons
• Align
the
licences
with
the
prevailing
legal
and
regulatory
framework
• Address
challenges
(industry
and
regulatory)
experienced
in
the
past
Sec)on
82
of
Kenya
Informa)on
and
Communica)ons
Act,
providing
for
modifica)on
of
any
licence
condi)ons
issued
under
the
Act
from
)me
to
)me

13.
Areas
of
significant
modifica)ons
in
the
licences

14. 1. Network
Facili?es
Provider-­‐T3
• Change
of
administra)ve
boundaries
from
district/
province
to
county
• Change
of
geographical
boundary
in
compliance
with
new
cons)tu)on
–
county
boundaries

15. 2.
Penal?es
• Apply
to
terms,
condi)ons
or
direc)ve(s)
• Minimum
Kshs
500,000
and
a
max
of
0.2%
of
annual
gross
turn
over
• Factors
for
propor)onate
applica)on
included
in
the
licence
term

16. 3. Colloca?on
of
Infrastructure
• No
exclusive
agreements
with
building
owners
• Provision
of
adequate
space
for
sharing
by
first
entrants
where
possible

17. 4. Numbering
• Origina)on
and
termina)on
of
calls/numbers
outside
numbering
plan
• Configure
the
na)onal
emergency
numbers
and
deliver
free
of
charge
emergency
traffic
generated
on
own
network
to
Public
Emergency
Service
Providers

18. 5. CSP
Interconnec?on
• CSPs
treated
as
interconnec)on
partners
• NFP-­‐T1
recognizes
CSPs
Plakorms
for
connec)on
•
Its
about;
– Parity
treatment
of
licensees
– Customers

19. 6. Suspension
of
Opera?ons
COMPLIANCE
REVOCATION
SUSPENSION

20. 7. Transi?onal
Provisions
Technology
and
Service
Specific
Licences
ULF
Licences
ü Issuance
of
appropriate
licence
ü Market
based
spectrum
alloca)on
ü Applica)on
and
issuance
of
appropriate
licence
for
unsuccessful
licensees

21. 8. Interest
on
Delayed
Payment
of
Fees
• Annual
fees
to
be
paid
within
90
days
• Delayed
payments
an
audit
query
• Delay
amract
2%
interest
per
month
as;
– Clear
audit
queries
– Deterrent
for
borrowing
without
consent

22. 9. Subscriber
Management
Plan
to
ensure
smooth
migra)on
of
customers
to
another
licensee
for
seamless
service
con)nuity
In
case
of;
1. Non
renewal
of
licence
2. Licence
revoca)on
3. Bankruptcy
Licensee
to
provide
a
plan
for
service
con)nuity
for
its
customers

23. 10. Mobile
Network
Coverage

24. Milestones
on
Modifica)on
Process
Public
Consulta)on
Internal
Review
of
comments
Joint
Review
of
stakeholders
comments
Incorpora)on
of
agreeds
and
internal
processes
Final
Licences
Issuance
of
licences
17th
Oct
to
7th
Dec
2014
Jan
2015
March
2015
May
2015
June
2015
July
2015
COMPLETE
Progress

25. Way
Forward….?
• Issuance
of
new
licences
to
all
licensees
under;
– Unified
Licensing
Framework
– Old
Licensing
Framework
• Compliance
with
licence
condi)ons
to
be
a
prerequisite
• Window
period
is
6
months
(1st
July
to
31st
December
2015)
• Licensees
to
make
effort
(achieve
compliance)
to
obtain
the
new
licences
• January
2016
–
all
licensees
to
have
new
licences

26. Failure
To
Obtain
New
Licences….
• Cons)tute
and/or
imply
non
compliance

27. Challenge
• Know
your
licence
terms
and
condi)ons
• Know
the
licence
terms
and
condi)ons
of
your
business
partners

28. Thank
you