Door opens for new non-profit telecom firms

[Business Daily Africa]
By Okuttah Mark
28 March, 2007

Licence-free band spectrum, courtesy of the airwaves’ regulator, could allow non-profit organisations to own and operate telecom companies.

The Communication Commission of Kenya’s offer of the ISM Band 2.4 and 5.8 spectrum to registered community groups is on a first-come-first-served basis, and already organisations from Mukurweini, Khwisero, Limuru and Rangwe have expressed interest. Countries like Tanzania, Namibia, Bangladesh and India have used the concept of free frequencies in efforts to bridge the ‘digital divide’ with the West.

Alex Gakuru, of the ICT Consumers Association of Kenya (ICAK) , hailed the move by the CCK. He said it will enable those in far flung areas to manage their information systems without waiting for operators who might not see a good business case for moving into those areas.

“Telecommunication companies have failed consumers on liberalisation promises of cheaper, better and widespread services,” said Mr Gakuru. In 1999, placing a one minute call through Telkom Kenya network was just Sh1, while now after sector liberalisation it stands at seven shillings, he said.

Through his association, Mr Gakuru is advocating for the cause of community owned telecoms. He said now most customers have little input into the products and services being offered by the telecommunication companies.

As demand for ICT services rise so does price. Consumers are bombarded with products and services that don’t fit their communication needs. For example, the wireless data transfer service known as General Packet Radio Service (GPRS), which failed to take off despite promising speeds of up to 115Kbits per second.
“In the current situation ICTs cause more poverty than prosperity. It is cheaper to board a matatu, take a 10megabits file than attempt to upload via email at 32 kilobits per second,” he said.

To Mr Gakuru, the best way to protect consumers is to allow them to own their own telecom companies.

In Khwisero, the constituents have placed communications at the top of their needs and through the Constituency Development Fund (CDF), they have put a proposal to spare between Sh3 million-Sh5 million for connecting the area with fibre and deploying wireless networks.

The community intends to use Wifi enabled mobile phones to access both voice and data communication.

In Rangwe, there are plans by the constituents to connect the area with fibre over electric cables.

Although ICTs future is still bright, only companies who have user centric models will survive, points Gakuru.

Door opens for new non-profit telecom firms