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

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

Kenya's telecommunications market has undergone considerable changes since the landing of four fibre-optic international submarine cables in recent years. The dramatic increase in international bandwidth not only ended the country's dependence on limited and expensive satellite bandwidth, but ensured that the cost of broadband access was made affordable for a large section of the population. Access prices had already fallen significantly following the liberalisation of international gateways and the provision of a national backbone network in 2005, but they have now fallen by more than 90%, enabling cheaper tariffs for telephone calls and broadband services. In parallel, the sector's regulator, the Communications Commission of Kenya (CCK), has mandated price cuts on interconnection tariffs and has implemented a range of regulations aimed at developing further competition.

The country's incumbent fixed-line telco, Telkom Kenya, has revamped its infrastructure and services under the Orange Kenya brand, having benefited from fresh capital from its majority shareholder, the Orange Group. The company has also re-entered the mobile market. In early 2014 Orange Group announced plans to sell its 70% stake in Orange Kenya, though by the end of the year it discussions with the government, which owns the remaining 30% stake, had faltered.

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:

Orange Group claims to have lost control of Orange Kenya following failed sale negotiations; merger and acquisition activity continuing among second-tier telcos; mobile operators enter the fibre market; report update includes the regulator's market data to December 2014, operator data to Q4 2014, recent market developments.

Companies mentioned 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 Privatisation
6.1.5 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 Telecom sector revenue in Kenya 2011 - 2018
Table 8 Historic - Fixed lines in service and teledensity in Kenya 1999 - 2004
Table 9 Fixed lines in service and teledensity in Kenya 2005 - 2015
Table 10 Fixed-wireless subscriptions in Kenya 2007 - 2014
Table 11 International bandwidth in Kenya 2000 - 2014
Table 12 International bandwidth capacity by platform 2013 - 2014
Table 13 International bandwidth used 2013 - 2014
Chart 1 - Fixed lines in service and teledensity in Kenya 2005 - 2015
Exhibit 1 The CCK coup of 2005

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