Page 125 - SAMENA Trends - January-February 2025

REGULATORY & POLICY UPDATES SAMENA TRENDS

Kenya’s Communications Authority (CA) has introduced pose security risks and weaken local accountability.
a proposal to significantly increase the 15-year Kenya’s regulatory approach highlights the tension
licensing fees for satellite Internet providers (ISPs) between fostering innovation and maintaining market
from $12,302 to $115,331. The new rules also include oversight. Stricter rules could safeguard local players
Kenya an annual levy of 0.4% of gross turnover, further raising and ensure compliance, but they risk stifling competition
the operational costs for providers like Starlink. These and slowing the spread of high-speed Internet to
changes are critical for Kenya’s digital landscape as regions that need it most. As the CA finalizes these
demand for high-speed Internet is surging, especially changes, stakeholders must consider policies that
in underserved and rural areas where satellite ISPs promote both accessibility and sustainable business
play a crucial role. However, the proposed fees risk operations for ISPs. Striking this balance will be key
dampening this progress, as smaller ISPs, such as to ensuring Kenya’s digital transformation benefits its
Viasat and NTvsat serving under 1,000 users combined, entire population. (January 13, 2025) www.techpoint.africa
may struggle to absorb the financial burden, potentially
slowing the rollout of much-needed connectivity in The Communications Authority (CA) proposed new
remote regions. While the CA’s proposal aims to ensure licensing rules and fees from that could financially
fairness and regulate the growing satellite ISP market, impact distributors of terminal electronic devices and
the higher fees could inadvertently limit competition complex network equipment as well as satellite internet
and innovation. Small and medium-sized ISPs, essential service providers (ISPs). Plans for a new license, called
to expanding Internet access in remote areas, face the Telecom Equipment Distributor (TED) license,
the risk of being priced out of the market. This could which is aimed at limiting counterfeit electronics, will
leave underserved communities with fewer options and mean that distributors of terminal electronic devices
perpetuate the digital divide. Despite these challenges, and complex network equipment will need to apply
the proposal includes progressive elements, such as for a license by paying KSh5,000 (about US$38.58).
allowing satellite ISPs to engage in terrestrial cable But that’s not all. There will also be a license fee set at
operations, telemetry, and even space research. This KSh250,000 (US$1,929), renewable after 15 years, and
expanded scope could attract more investment into an annual operating fee charged at 0.4% of turnover or
Kenya’s tech ecosystem, enabling companies like a minimum of KSh120,000 (US$926). There certainly
Starlink to establish ground stations and improve does seem to be an issue with fake mobile phones in
service quality. Starlink, owned by Elon Musk’s SpaceX, Kenya (up to 40% of phones in the market could be
has quickly established itself in Kenya’s market since fake according to CA in February last year). Under the
its June 2023 launch. By offering affordable and high- new license, violators will face fines of up to KSh300,
speed satellite Internet, Starlink grew its subscriber 000 (US$2,315). The CA has already introduced a web-
base to over 8,500 users in just over a year. The service based platform that enables Kenyans to ascertain the
has been instrumental in bridging digital gaps, providing validity of their device brands. An attempt to require
connectivity in areas beyond the reach of traditional individuals (eventually specified as only Kenyan citizens
telecom infrastructure. However, local players like entering the country) to declare the International Mobile
Safaricom, which has over 350,000 fixed Internet users Equipment Identity (IMEI) numbers of their devices was
through its fiber network, see satellite ISPs as both suspended after data privacy concerns were expressed.
competitors and potential disruptors. Safaricom had The CA has also introduced a proposal to significantly
earlier urged the CA to mandate partnerships between increase the 15-year licensing fees for satellite ISPs
satellite providers and local mobile operators, arguing from $12,302 to $115,331.
that independent operations by companies like Starlink (January 10, 2025) www.developingtelecoms.com

In a bid to improve disaster response and enhance of Cyclones Idai, Kenneth, Eloise, Ana, Gombe, and
communication during emergencies, Malawi Cyclone Freddy, which wreaked havoc across Malawi
has officially launched the National Emergency in recent years, causing widespread destruction,
Telecommunications Working Group (NETWG), loss of life, and the crippling of vital infrastructure.
Malawi following the devastating effects of recent severe Cyclone Freddy alone claimed over 700 lives, displaced
weather events. The initiative, spearheaded by tens of thousands, and left many missing after
the Malawi Communications Regulatory Authority torrential rains. MACRA’s Director of Broadcasting,
(MACRA), aims to create a resilient and efficient Zadziko Mankhambo, highlighted the crucial role of
emergency telecommunications system that can save communication in disaster response, stressing that
lives and protect communities during crises. The move without reliable communication, coordination falters,
comes after the country experienced the tragic impacts and lives are at risk. He noted that following Cyclone

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