By NJIRAINI MUCHIRA

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Mobile network operators (MNOs) in Kenya are set to be hit with a $25 million licence fee for the fourth generation (4G) network.

After months of rolling out the 4G network on a trial basis in mainly urban areas, the MNOs are expected to pay a total of $75 million for the licence as the trial period expires.

Industry regulator Communications Authority of Kenya had issued the MNOs with one-year trial licences to deploy the 4G/LTE network in the 800 MHz band. On expiry, the operators will each pay $25 million for a 2x10 MHz spectrum in the 800 MHz band.

The 4G network, which operators Safaricom, Airtel and Telkom are deploying to gain a competitive edge in the data market, is seen as critical in increasing Internet penetration in Kenya.

Mobile operators in Tanzania, Uganda and Rwanda are also rolling out the network, which enables high-speed mobile Internet that is five times faster than the 3G network.

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In theory, the network can provide speeds up to 100 megabytes per second (Mbps), allowing for seamless streaming and fast uploads and downloads.

“The favourable propagation characteristics of the 800 MHz band are to provide cost-effective solutions for coverage, including large rural areas of low population density,” said Christopher Wambua, CA acting director for consumer and public affairs.

Across the region, MNOs have set their sights on data and alternative services to drive revenue growth following the stagnation of the voice business.

In its 2017 financial results, Safaricom attributed its net profit of $459 million to a significant increase in data revenue. While the company posted a 2.9 per cent rise in voice revenue, mobile data revenue rose by 38.5 per cent.

During its rebranding early this month, Telkom said it was hoping to ride on 4G to gain a bigger share of the data market.