Kenya - Key Statistics, Regulatory and Fixed-Line Telecoms Overviews

Kenya - Key Statistics, Regulatory and Fixed-Line Telecoms Overviews

Kenya's telecommunications and broadband market has undergone a revolution following the arrival of four fibre-optic international submarine cables, ending its dependency on limited and expensive satellite bandwidth. The countrys international bandwidth increased more than fifty-fold in the past three years. Prices had already fallen significantly following the liberalisation of international gateway and national backbone network provision in 2005, but they have now fallen by more than 90%, enabling cheaper tariffs for telephone calls and broadband internet services. In parallel, the sector regulator, the Communications Commission of Kenya (CCK) has mandated price cuts on interconnection tariffs and implemented new competition regulations.

The country's incumbent fixed-line telco, Telkom Kenya embarked on revamping its infrastructure and services under the Orange brand with fresh capital from its new majority shareholder, France Telecom, and it has also re-entered the mobile market. However, the company continued making losses and required a substantial cash injection in 2012 as part of major restructuring program. In early 2014 France Telecom announced plans to sell its stake in Telkom. There have also been takeovers in the second tier telco market, notably Kenya Data Networks (KDN) and AccessKenya.

A simplified and converged licensing regime introduced in 2008 has lowered the barriers to market entry and increased competition by allowing operators to offer any kind of service in a technology- and service-neutral regulatory framework. Various competitors are rolling out national and metropolitan fibre backbones and wireless access networks to take the new bandwidth and services to population centres across the country. Several fibre infrastructure sharing agreements have been forged.

Key developments:

Majority stake in Telkom Kenya up for sale;
Mergers and acquisitions among second-tier telcos;
Mobile operators enter the fibre market.

Companies covered in this report:

Telkom Kenya (Orange, France Telecom); Kenya Data Networks (KDN); Jamii Telecom; Access Kenya (Dimension Data); Kenya Power and Lighting Company (KPLC); Kenya Pipeline Corporation (KPC); Wananchi; Safaricom; Bharti Airtel; MTN; Liquid Telecom.

1. Synopsis
2. Key statistics
3. Telecommunications market
3.1 Overview of Kenya's telecom market
4. Regulatory environment
4.1 Kenya Communications Act 1998
4.2 Regulatory authority
4.2.1 Communications Commission of Kenya (CCK)
4.2.2 Independent Communications Commission of Kenya Bill 2011
4.3 Revised Telecommunications Market Structure 2004
4.4 Kenya Communications Amendment Act 2009
4.5 Licence fees
4.6 Universal Service Fund (USF)
4.7 Tariff regulation
4.8 Interconnection
4.9 Number portability
4.10 Spectrum auctions
4.11 Foreign ownership
4.12 Dominant market player designation
5. Telecom sector liberalisation in Kenya
5.1 Regional telecom licences
5.2 Second national operator (SNO) licensing
5.2.1 First attempt fails in 2004
5.2.2 Second attempt fails in 2007
5.3 International gateway licences
5.4 VoIP telephony
5.5 Converged licensing regime since 2008
5.6 BPO subsidies
6. Fixed network operators in Kenya
6.1 Telkom Kenya (Orange Kenya)
6.1.1 Fixed-line statistics
6.1.2 Wireless Local Loop (WLL)
6.1.3 Tariffs
6.1.4 ARPU
6.1.5 Privatisation
6.1.6 The company under France Telecom management
6.2 Fixed-wireless operators
6.3 Liquid Telecom, KDN
6.4 Jamii Telecom
6.5 AccessKenya
7. National fibre backbone infrastructure
7.1 Telkom Kenya, NOFBI
7.2 Liquid Telecom
7.3 Kenya Power and Lighting Company (KPLC)
7.4 Kenya Pipeline Corporation (KPC)
7.5 Safaricom
7.6 MTN
7.7 Fibre infrastructure sharing
8. International infrastructure
8.1 Satellite
8.2 Terrestrial fibre
8.3 Submarine fibre
8.3.1 EASSy
8.3.2 TEAMS
8.3.3 SeaCom
8.3.4 LION-2
8.3.5 Other projects
9. Related reports
Table 1 Country statistics Kenya 2014
Table 2 Fixed-line statistics 2014
Table 3 Internet provider statistics 2014
Table 4 Internet user statistics 2014
Table 5 Mobile statistics 2014
Table 6 National telecommunications authority
Table 7 Fixed lines in service and teledensity in Kenya 1999 - 2014
Table 8 Fixed-wireless subscriptions in Kenya 2007 - 2013
Chart 1 - Fixed lines in service and teledensity in Kenya 1999 - 2014
Exhibit 1 The CCK coup of 2005

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