Telkom: 3G’s $25m licence fee ‘too high’

Mr Ghossein said that the most favourable would be getting the 3G network licence free of charge, with even sharing of revenue and obligations.

Orange said that a positive response from CCK would enable it to affordably deploy 3G services on a commercial basis by March 2011 as it had already invested close to $3 million in the project.

The Telkom Kenya CEO stated that if granted the license at reasonable terms, this would make his firm the first GSM operator in Kenya to commercially market video conferencing services.

This would be delivered through Webex Solution, operated by CISCO.

Under this network, corporate customers will be able to access their office intranet platforms in a service dubbed “Business Everywhere” over 3G even while away from office.

If successful, Orange would become the second mobile network in the country to commercially deploy 3G services in Kenya.

Only mobile phone service provider Safaricom operates the 3G network in the country. It has been doing so since 2007.

Earlier in the year, Zain Kenya applied for a licence to commercially operate the 3G but with a rider that the fee be reviewed.

This was contested by Safaricom which argued that since it paid the $25 million licence fees, its competitors must do the same.

As the decision by CCK over the matter is awaited, industry players are hoping that it will not be to the detriment of the rapidly evolving mobile phone technology.

A response that is expected by end of January 2010 could determine the future course of mobile technology in the East African country.

Mr Ghossein said that though the system had been found to be working, the test run is only meant to ensure that the service is clear.

“Orange will be seeking to fine tune its network delivery capacity and will be working in partnership with a select team of leading local corporate enterprises,” he added.

Mr Ghossein said that if their wishes are granted, the 3G network would be commercially deployed in March 2011.

“We need about four months to add more sites and cover the entire country before roll out,” he added.