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Communications Authority of Kenya (CA) is set to overhaul its licensing framework for international connectivity, aiming to foster technology neutrality and attract investment in the telecommunications sector.

The proposed changes include merging the existing Submarine Cable Landing Rights (SCLR) and Satellite Landing Rights (SLR) licenses into a new “Landing Rights License,” which will allow for various technologies in signal landing.

“The SLR and SCLR Licence categories be merged to create a new Licence category called the Landing Rights Licence. This change aims to ensure technology neutrality and allow investors to land signals using any technology,” CA said in its new market structure review report released in December

According to the regulator, this new Licence category will expand its scope to accommodate investors looking to leverage Kenya’s unique location to operate terrestrial cables, satellite hubs, and satellite services beyond traditional communication, such as telemetry, tracking and control subsystems (TTC), space research, and meteorological aids, among others.

“Holders of Landing Rights Licences shall only commercialise the capacity within Kenya through licensed International Gateway Systems and Services (IGSS) licensees or provide end-user/direct- to- device (D2D) services through duly licensed ASPs,” the CA said.

Currently, SCLR and IGSS licenses incur higher fees compared to SLR, which has raised concerns about regulatory consistency.
The CA aims to standardise fees, proposing an initial license fee of Sh15 million and an annual operating fee of Sh4 million or 0.4 per cent of gross turnover for the new license.

This shift is expected to enhance competition and innovation, particularly benefiting satellite internet providers like Starlink. The CA’s review comes amidst rising demand for high-speed internet in underserved areas, with stakeholders invited to provide feedback until January 23, 2025.

Implementation of the new regulations is anticipated in the 2025/2026 financial year. While these changes aim to streamline operations and improve connectivity, concerns remain about their impact on smaller providers and overall market competition.

Merging licenses

In addition to merging licenses, the CA’s proposals reflect a broader strategy to modernise Kenya’s telecommunications landscape. By introducing a technology-neutral framework, the CA seeks to eliminate barriers that have historically limited access to international connectivity. This move is particularly crucial as Kenya aspires to become a regional hub for digital services and infrastructure.

The proposed “Landing Rights License” will not only allow for greater flexibility in technology use but also encourage investment in diverse telecommunications infrastructure.

Investors will be able to land signals using any technology, which could lead to enhanced service offerings and increased competition among providers. The CA anticipates that these changes will facilitate the deployment of advanced technologies, including fibre optics and satellite communications.

The regulator also emphasised the importance of community networks in bridging the digital divide.

Recent initiatives have introduced a Licensing and Shared Spectrum Framework for Community Networks, allowing local organisations to establish their own telecommunications services.

This framework aims to empower communities by enabling them to build and maintain necessary infrastructure for internet access at an affordable cost. While the proposed changes are promising, they also raise questions about how smaller providers will adapt to a more competitive environment.

Industry experts have expressed concerns that larger companies may dominate the market if regulatory measures do not adequately support smaller players.