The Communications Authority of Kenya is ushering in new licensing rules and fees. These changes could financially affect terminal electronic devices, complex network equipment retailers, and satellite internet service providers.
Distributors and telcos must now pay a one-off fee of KSh 250,000 ($1,933.49) for a 15-year licence. If that isn’t enough, they will be obliged to pay 0.4% of their yearly income as an annual fee, but not under KSh 120,000 ($928.07).
Why is the communications authority of Kenya introducing a telecom fee?
The new licence, which is called the Telecom Equipment Distributor (TED) licence, aims to reduce counterfeit electronics. The CA wants to ensure that electronics like phones, TVs, laptops, and tablets align with international and local standards. This means wholesalers of terminal electronic devices and complex network equipment must apply for a licence, costing KSh5,000 ($38.58).
There definitely seems to be an issue with fake mobile phones in Kenya, as up to 40% of phones in the market could be fake, according to a CA report. Under the new licence, wholesalers will face fines of up to KSh300,000 ($2,315) for selling fake gadgets.
Though the new move means that gadgets may be more expensive for consumers, the proposal also notes that it will allow satellite ISPs to join in terrestrial cable operations, telemetry and space research. This is significant for Kenya as the demand for high-speed internet is high. For rural and deprived areas where satellite ISPs play an important role, there are concerns that the new plans could reduce competition and innovation.
Image: Nappy
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