- The new model proposes charging the spectrum categorically in three bands; low, medium and high.
- This from the current model where pricing is done based on the number of transmissions a company has.
The Communications Authority of Kenya is hosting a workshop in Nairobi to deliberate on the changes in the pricing model for the radio spectrum to ensure effective utilization of the resources in the country.
The new model proposes charging the spectrum categorically in three bands; low, medium and high.
This is from the current model where pricing is done based on the number of transmissions a company has.
Spectrum relates to the radio frequencies allocated to the mobile industry and other sectors for communication over the airwaves.
Speaking on Monday during the opening session, CA's director general David Mugonyi, said the current pricing model is unfavorable in the current market dynamics.
"This is based on a benchmark study conducted across different jurisdictions to advise on the best model of approach going forward," he said.
"Recognizing radio spectrum is a scarce resource, the Authority is therefore obligated to ensure that frequencies are utilized effectively and efficiently for maximum economic value."
He added that determining the appropriate pricing for this critical resource is one way of maximizing efficiency, the reason for conducting the study is to ascertain its scope.
"Over-priced and poor quality services are an indicator of market and regulatory failure, our need to build a digital economy means we cannot allow that to happen," Mugonyi said.
"This research has established a strong link between high spectrum pricing, slow network roll-out, reduced network quality and poorer mobile coverage."
Further, industry studies also confirm that poor spectrum policies in developing countries result in reduced network quality, limited access to mobile broadband for millions and lost digital opportunities, he added in part.
Other sector experts at the forum also noted the current pricing discourages usage of the spectrum, and several bench-marked countries globally have moved away from that model.
To harness the full potential of the digital economy, the DG reiterated that it is imperative to get spectrum pricing right.
Access to additional spectrum is also central to expanding and upgrading mobile broadband speeds and coverage, enabling meaningful connectivity for society, Mogonyi concluded.
Based on the interim findings of the study, CA noted the key highlights of the interim recommendations include changing the spectrum pricing methodology for some licence categories, maintaining the existing pricing methodology for other business segments and consideration of factors such as inflation on spectrum value.