NAIROBI, Kenya- Illegal Internet Service Providers (ISPs) are multiplying in Kenya’s urban hubs, causing headaches for legitimate operators and prompting the Communications Authority of Kenya (CA) to step in with robust new regulations.
These measures aim to tighten the reins on rogue players and refine the licensing structure for existing operators.
Let’s break down what this means for the industry and consumers alike.
The CA has proposed changes to the licensing structure, focusing on the NFP-T3 category and introducing the all-new NFP-T4 license.
These adjustments aim to create a fair playing field while enabling smaller providers to enter the market.
NFP-T3 License Expansion
Licensed operators under the NFP-T3 category will now have the opportunity to grow their reach from a single county to up to three counties.
This comes with a caveat: operators must adhere to new restrictions, including penalties for overstepping their geographical limits.
If a licensee operates outside their designated three counties without upgrading to an NFP-T2 license, they face fines of 0.2pc of their annual gross turnover for each unauthorized area.
Moreover, NFP-T3 operators will gain the ability to deploy satellite systems, such as satellite hubs, without technology constraints. However, their operations will remain bound to county-specific regulations.
The New NFP-T4 License
Targeted at smaller providers, the NFP-T4 license is designed to foster local internet access solutions.
These operators will be limited to a single county, ensuring their focus remains on smaller-scale, community-based networks.
The licensing costs include an application fee of Sh1,000, an initial fee of Sh15,000, and an annual fee of Sh15,000 or 0.4pc of their annual gross turnover, whichever is higher.
The license comes with a 15-year validity and a pathway for growth. NFP-T4 operators can upgrade to NFP-T3 once they meet the necessary operational and financial criteria.
Tackling the Illegal ISP Boom
Unlicensed ISPs have been quietly thriving, particularly in densely populated areas, by exploiting frequency bands meant for industrial, scientific, and medical (ISM) applications.
They’ve even gone as far as laying unauthorized fiber optic cables and establishing wireless networks in urban neighborhoods.
These rogue networks, while localized, pose significant challenges to legitimate operators who must comply with strict licensing regulations.
According to the CA, the lack of oversight in these operations not only disrupts fair competition but also compromises the quality of internet services.
To combat this, the CA proposes that applicants for the NFP-T4 license must simultaneously secure a County ASP License, which comes with its own fee structure.
These combined measures aim to curb unauthorized activities while supporting legitimate local providers.
The new regulations signal the CA’s commitment to fostering a fair and competitive internet service landscape.
While smaller operators can now access a more affordable licensing structure, the penalties for non-compliance emphasize the importance of staying within legal bounds.
