Unified license takes effect in Kenya

The much awaited unified license has taken effect in Kenya after the Ministry of Information and Communication issued new policy guidelines aimed at streamlining license requirements and attracting more investors.

The guidelines, revealed in this week's Kenya Gazette notice, drop the multiple licensing regime where services were grouped on the basis of technology. ISPs (Internet service providers), for instance, were formerly required to obtain a separate license to offer VoIP (voice over Internet Protocol).

Under the new license regime, operators and service providers will be licensed under three broad market segments: network facilities providers, application service providers and content service providers. The modified licenses will retain the original terms to give operators time to transfer to the new regime.

Network facility providers will own communication infrastructure based on either satellite, terrestrial, mobile or fixed lines. There are three tiers of providers under this category: fixed line network operators; data carrier network operators; and network facilities providers, including local loop providers, international gateway operators and companies providing fiber optic cable landing facilities.

Application service provider licensees will provide all forms of services to end users of facilities providers' network services. This category includes ISPs and other value-added service operators.

Content service provider licensees will provide information and data processing services and include premium rate and credit card validation service providers

The unified license policy guidelines were developed after complaints by industry players that the Communications Commission of Kenya required too many licenses and was not taking into consideration issues of convergence in the ICT sector.

The guidelines stipulate that the CCK will regulate the adoption of the new licenses and the smooth transition of companies that may hold more than one license.

The IDG News Service is a Network World affiliate.