compliance reporting-licensing trends
TRANSCRIPT
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Communications Authority of Kenya
Licensing Trends, Status and Modification of
Licences
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Content
• Licensing Framework• Sector Outlook• New Developments in the Industry• Licence Modifications• Way Forward
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Licensing FrameworkSERVICE 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
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PRESENT - Technology Neutral
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FUTURE
Transitional Provisions
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Market Outlook
Service Providers
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Market Outlook Cont’d
Network Facilities Providers - 44
Submarine Cable Landing Right Licences - 3
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The Role of Licensing
• Economy– Promote investment– Promote competition through multiple players– Job creation
• Consumer– Provide consumers with a wide variety of choice – Competitive pricing of products and services
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New Market Developments
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New Market Developments
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Licences Affected By Modifications
• Application Service Providers• Content Service Providers• Network Facilities Providers• International Gateway Operator• Submarine Cable Landing Systems Operator
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Objectives Of Modifications
• Align the licences with the prevailing legal and regulatory framework
• Address challenges (industry and regulatory) experienced in the past
Section 82 of Kenya Information and Communications Act, providing for modification of any licence conditions issued under the Act from time to time
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Areas of significant modifications in the licences
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1. Network Facilities Provider-T3• Change of administrative
boundaries from district/province to county
• Change of geographical boundary in compliance with new constitution – county boundaries
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2. Penalties• Apply to terms, conditions or
directive(s) • Minimum Kshs 500,000 and a
max of 0.2% of annual gross turn over
• Factors for proportionate application included in the licence term
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3. Collocation of Infrastructure
•No exclusive agreements with building owners•Provision of adequate space for sharing by first entrants where possible
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4. Numbering
• Origination and termination of calls/numbers outside numbering plan
• Configure the national emergency numbers and deliver free of charge emergency traffic generated on own network to Public Emergency Service Providers
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5. CSP Interconnection• CSPs treated as interconnection partners• NFP-T1 recognizes CSPs Platforms for connection• Its about;– Parity treatment of licensees– Customers
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6. Suspension of Operations
COMPLIANCE REVOCATION
SUSPENSION
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7. Transitional Provisions
Technology and Service Specific
Licences
ULF Licences
Issuance of appropriate licence Market based spectrum allocation Application and issuance of appropriate
licence for unsuccessful licensees
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8. Interest on Delayed Payment of Fees
• Annual fees to be paid within 90 days• Delayed payments an audit query• Delay attract 2% interest per month as;– Clear audit queries – Deterrent for borrowing without
consent
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9. Subscriber Management
Plan to ensure smooth migration of customers to another licensee for seamless service continuity
In case of;1.Non renewal of licence2.Licence revocation3.Bankruptcy
Licensee to provide a plan for service continuity for its customers
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10.Mobile Network Coverage
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Milestones on Modification Process
17th Oct to 7th Dec 2014
Jan 2015
March 2015May 2015
June 2015
July 2015
COMPLETEProgress
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Way Forward….?• Issuance of new licences to all licensees under;– Unified Licensing Framework– Old Licensing Framework
• Compliance with licence conditions 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
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Failure To Obtain New Licences….
• Constitute and/or imply non compliance
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Challenge
• Know your licence terms and conditions
• Know the licence terms and conditions of your business partners
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Thank you