Ghossein seeks reduced 3G licence fees

15 Dec 2009

As Telkom Kenya (Orange) launches a trial 3G network in Nairobi, company CEO Mickael Ghossein has spoken out against the KES1.8 billion (USD25 million) licence fee charged by the Communications Commission of Kenya (CCK) for operators wanting to rollout commercial 3G services. Ghossein said that industry players are currently engaging with the CCK in an attempt to reduce the enormous licence fee, saying: ‘Having already invested a substantial amount in this project, we would be happy to get a positive consideration from CCK to reduce the figure which may ultimately be a barrier to deepening communication services.’ Along with Telkom, Zain Kenya is also currently undergoing the initial phase of a 3G rollout. Both companies feel that the current licensing structure is prohibitive and will severely affect expected returns on initial investment, making a large-scale deployment impossible. Regardless, both firms hope to launch commercial 3G services by mid-2010.