COMMUNICATIONS Commission of Kenya said yesterday it has finalised plans to roll out the multi-billion universal services fund after an almost four years stand-off with telcos.
Director general Francis Wangusi said some of the operators have started returning the invoices it had sent out earlier to all of them.
All companies regulated by the CCK are required to contribute 0.5 per cent of their revenue to the fund that seeks to bridge the gap in accessing ICT services.
Projects under the fund will be concentrated in marginalised counties like Turkana, Wajir, Samburu, Marsabit, Mandera and Isiolo among others.
The CCK, he told Parliament, has set aside Sh1 billion while contributions from the telcos are estimated at a minimum of Sh600 million this financial year ending next June.
Members of the departmental committee on energy and ICT led by chairman Jamleck Kamau however disagreed with government's estimates.
They argued Safaricom's share alone would surpass the estimates going by its Sh124.3 billion income for the year ended last March, which will translate to Sh621.5 million.
“It's true it is a gross under-estimation but we should also remember that revenues from most broadcasters and ISPs (internet service providers) is very little,” Wangusi admitted. “That's why Safaricom has been complaining because it will be contributing the lion's share.”
He said the fund will grow going forward with CCK expected to start committing 25 per cent of its earnings every year.
CCK director for consumer and public affairs Mutua Muthusi said in an interview after the meeting with the parliamentary committee that bridging the gap in voice and data in the country will cost up to Sh75 billion.
The fund was established under the Kenya Communications (Tariff) Regulations 2009, its regulations gazetted in 2010 but the installation of the now nine-member Universal Service Advisory Council was only done last February.
The council's membership was initially six but was expanded to nine in July to accommodate broadcasters and postal operators. Wangusi said the council and CCK retreated yesterday to finalise a framework to govern and administer the fund.
He hinted telcom operators will be given priority in tenders for the projects under the fund.
“The council will determine the projects under its own criteria and modalities on choosing an operator will be based on the lowest bidder, ”he said.
The delayed roll out of the fund was caused by hurdles including opposition from telcos that insisted they have committed part of their revenue to ongoing corporate social responsibility programmes.
The government also suspended the fund's implementation in 2011 to allow telcos to participate in the flopped digital villages programme, principal secretary for ICT ministry Joseph Tiampati told the parliamentary committee.
“We appreciate the concerns about the slow implementation of the fund since 2009,” he said. “Contributions should now be backdated to July 1.”