The Kenya Telecommunications Network Operators (KTNO) has called on the government to reconsider blocking them from the board of the Universal Service Fund (USF), set up to fund the support of infrastructure in the industry.
The Communications Commission of Kenya (CCK) will have sole management of the USF, to be funded by 0.5 per cent of revenue paid by the operators from July.
The government hopes to raise around KSh1 billion (US$11 million) annually from the mobile operators, broadcasters, ISPs and courier operators.
But having been left in the cold by the government and the CCK in regards to representation on the USF’s board, amid fears there would be a conflict of interest, a KTNO statement said: “It is difficult to determine which interest each of the appointees represents. We would therefore wish for reconsideration of this matter, and in particular, reconstitution of the USAC in order to allow for fresh appointments after proper consultations.”
The USF will focus on remote areas such as the northern eastern frontier, addressing issues that include increasing high-speed internet access, building mobile telephony masts and upgrading data masts in the vast remote areas which investors regard as commercially non-viable.
Susan Mochache, the assistant director of USF at CCK, said at a press briefing: “We will not include the telecoms operators in the management of the fund as this will result in conflict of interest since the same operators are expected to bid for the rollout of projects in marginalised areas.”
Kenya’s leading mobile service provider Safaricom is expected to generate the largest percentage with a payout of KSh620 million (US$7 million).
Some members of KTNO suggest the contributions should be time-bound and limited to one or two years and thereafter be self-sustaining, with other firms pushing for funding to be through grants.
