Network Infrastructure Presentation

Policies for Prosperity -Telecommunications Network Infrastructure in Kenya PRESENTATION January 2009

Introduction • The Telecommunication sector has undergone major milestones in the last couple of decades. Due to technology convergence, nations consider telecommunications technology to be part of the Information and communication technology (ICT) which is the driver of economies in the 21st century. • The availability of a robust telecommunications network allows for a rapid and free flow of information, which increases overall economic efficiency by ensuring that decisions made by economic actors take into account all available relevant information. • The Government of Kenya has recognized the importance of ICT in economic development and has initiated major steps to promote its use. 2

• Kenya ICT policy was approved and gazetted in march 2006. The policy was based on Kenya’s Economic Recovery Strategy for Wealth and Employment Creation. • The vision of the ICT policy is “a prosperous ICT-driven Kenyan society”. Its mission is “to improve the livelihoods of Kenyans by ensuring the availability of accessible, efficient, reliable and affordable ICT services”. • Among the challenges that the policy seeks to address is the ICT infrastructure and policy, legal and regulatory framework. • Provision of modern telecommunications infrastructure and information networks is recognized as key to rapid economic and social development of the country.

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• The policy states that “the overall Government objective for the sector is to optimize its contribution to the development of the Kenyan economy as a whole by ensuring the availability of efficient, reliable and affordable telecommunication services throughout the country.” •  From the ICT policy, two broad sub-sector policies will be analyzed namely the telecommunication sub-sector policy and the Information Technology sub-sector policy.

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• Reforms in the ICT sector have facilitated licensing of additional service providers making the services relatively more available, accessible and affordable. • The ICT telecommunication sub-sector has recorded a high growth rate over the years supported by heavy investment according to 2008 economic survey report. • The performance of the sub-sector was further boosted by the introduction of the wireless technology by Telkom Kenya and local loop operators for providing telephone services. Growth in subscriber base and exchange capacity for fixed, wireless and mobile network led to an improved total tele-accessibility that stood at 35.0 in 2007 compared to 9.9 in 2006. 5

Table 1: Telecommunication Statistics Year

1999 2000 2001 2002 2003 2004 2005

Fixed line 404,990 420,370 capacity Fixed 1.018 1.024 Teledensity Number of 292,131 309,379 wire line subscribers Subscribers 278,280 294,600 in urban areas 13,426 14,779 Subscribers in rural areas Number of 8,184 Payphones

8,684

2006 2007

446,30 490,000 508,000 508236 517,131 518,42 503,90 2 3 3 1.042 1.042 1.021 0.86 0.86 0.86 0.90 321,48 328,116 328,158 279,88 286,729 293,36 264,88 2 4 4 2 303,99 309,878 309,070 265,59 271,925 279,07 243,87 6 8 9 5 17,486 18,238 19,288 14,446 14,803 14,285 26,668

9,135

9,264

9,964

Source CCK database

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9,273

8,273

7,913

5,805

Table 2: Mobile Telephony Subscription Year

2003

2004

2005

2006

2007

March 2008

Number of

1,590,785 2,546,15 5,263,67 7,340,3 11,440,0 11,986,0

subscribers Mobile

4.95

7

6

17

77

07

7.77

15.74

21.62

33.65

35.25

penetration (%)

Source CCK database

Table 3: Mobile coverage Year

2004

2005

2006

2007

Number of BTS

626

1,144

1,606

1,924

Population

52%

62%

65%

77%

Land 11% 13% Source: coverage CCK database, Safaricom and Celtel coverage maps

19%

27%

coverage 7

• Review of Telecommunication Infrastructure covers fixed telephone and wireless telecommunication, mobile telecommunication, and data communications services. • Review of Telecommunication and Internet Services covers availability, accessibility, affordability, and quality of services. knowledge and skills uptake has also been reviewed. chapter reviews planned information and • Further, the communication infrastructure projects including : – The East African Marine Systems (Teams) – National Terrestrial Fibre Optic Network Project – Government Common Core Network (GCCN) – Data Centre/Data Recovery Centre

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• Kenya has been benchmarked with other countries that have a similar history in terms of competitiveness and network readiness. The countries compared with are Ghana, Egypt, South Africa, Uganda, Mauritius, Malaysia, and Singapore. The ICT strategies and policies in these countries are reviewed and lessons drawn for Kenya to adopt. • Globally, countries have effectively leverage ICT in pursuit of prosperity. According to the Global competitive index (GCI) 2008, Kenya ranked 93rd , overall improvement of six places from the previous year. • The paper identifies weaknesses in Kenya ICT Strategies and proposes alternatives . • The chapter concludes with recommended strategies and policy direction for Kenya to consider in order to effectively leverage ICT in pursuit of a prosperous nation.

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Table 4: International Gateway Bandwidth Year International gateway downlink bandwidth (Mbps) International gateway uplink bandwidth (Mbps) Total International gateway bandwidth (Mbps) Source: CCK Database

2005

2006

2007

89.89

100.9 6 73.47

337.18

174.4 3

485.14

70.28 160.17

147.14

Table 5: Internet Subscribers 2001/0 2002/03 2003/04 2004/05 2005/06 2006/07 2 Number of licensed ISPs 66 72 76 78 51 51 Users by ITU 200,00 400,000 1,000,00 1,054,9 1,111,00 2,770,2 (estimates) 0 0 20 0 96 Internet subscribers per 0.65 100 inhabitants 3.17 3.28 3.39 8.29

1.29 10

Source:Internet Telkom Kenya, Internet Market Study Analysis Dial-up

Table 6:

Kenya

Uganda

Global Competitive and Networked Readiness Indexes South

Mauritius

Ghana

Egypt

Malaysia

Singapore

Africa

The Networked Readiness Index 2007–2008 rankings Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score 92

3.34

109

3.06

51

4.05

53

3.96

-

-

63

3.74

26

4.82

5

5.49

The Global Competitiveness Report 2008–2009 Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score 93

3.84

128

3.35

45

4.41

57

4.25

102

3.62

81

3.98

21

5.04

5

5.53

E-government ranking Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score Source: The Networked Readiness Index 2007–2008 report, The Global Information Technology Report 2007-2008 and the United Nations eGovernment Survey 20080.3133 61 0.5115 63 0.5086 138 0.2997 122 0.3474 133 79 0.4767 34 0.6063 23 0.7009

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  Table 7: Social- Economic and Tele-density Statistics Kenya Population (000,000)

38

Ugand SA

Mauriti Ghana Egypt Malaysi Singapo

a

(2004)

us

31

48’832

1’271

23’946

7'520'126

7'624'16

a

re

76

27

4

131'095

186'720

132'152'926

GDP (U$) (2007) 26'950'500 (000)

10'160'47(2 257'172'821 006)

(2006)

Fixed telephone 0.71 lines per 100 inhabitants. (2007)

0.53

9.56

28.63

1.60

14.87

16.37

41.97

Mobile cellular 30.23 subscribers per 100 inhabitants. (2007)

13.58

87.08

73.60

32.39

39.82

87.86

133.54

Computers per 1.44 100 inhabitants. (2005)

1.67

8.36

17.52

0.58

4.87

23.41

76.87

(2007)

(2006)

2007)

Internet users

2.51

13.95

55.67

68.00

per 100 inhabitants. (2007)

7.99

(2006)

(2006) 8.16

26.95

(2006) 12

3.75

(2006)

  Table 7: Social-Economic and Tele-density Statistics Kenya Broadband Internet 0.05

Ugand SA

Mauriti Ghana Egypt Malaysi Singapo

a

(2004)

us

0.01

0.78

4.87

0.07

80.00

99.79

99.00

68.00

a

re

0.63

3.80

20.18

93.50

92.50

100.00

subscribers per 100 inhabitants. (2007)

% population

77.00

covered by mobile Source: ITU 2008 Database signal (2007)

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