Safaricom Airs Displeasure At New Licence Renewal Terms

Telecoms

Safaricom, the dominant mobile service provider in Kenya has aired its displeasure at the Communications Commission of Kenya (CCK), after being labelled as “non-compliant” and told to pay Sh2.3 billion ($26.5 million) for a licence renewal.

The mobile operator scored a dismal 50 percent against a minimum 80 percent in a CCK compiled report that rates telecom companies on performance and service delivery standards, a report on Business Daily indicated.

This has subsequently resulted in CCK – Kenya’s telecom regulator – billing the mobile provider over Sh2 billion and instructing it to meet the minimum service standard in order to secure its licence, which is due in June. Safaricom is however unsatisfied with the verdict, saying that such funds could be better utilized in improving service quality.

“Our view is that punitive measures will not assist the industry to achieve better QoS (Quality of Service) measures as they will divert resources from operators which could have been applied to improving coverage and network quality,” BusinessDaily quoted Safaricom CEO, Bob Collymore as saying.

“We believe that CCK can adopt a modern and collaborative methodology which will allow the operators to respond quickly and ensure customers have a good experience.”

The report not only indicted Safaricom, but all four mobile operators as it also found Airtel and YuMobile – both on 50 percent – as well as Orange-owned Telkom Kenya (67 percent) short of the 80 percent standard mark.

The Nairobi-headquartered company has however dismissed the assesment, labelling the indicators as ‘erroneous’, while calling for an independent internationally acceptable report to be carried out.