Title: University of Nairobi School of Computing
1University of NairobiSchool of Computing
Informatics
- ICT Sector Performance Review 2009/10
-
- Prof. Timothy M. Waema
- Research ICT Africa Kenya Team Leader
- 16 November, 2010
2Agenda
- Research ICT Africa (RIA) and ICT research
- Access and usage demand survey (2007)
- ICT sector performance review 2009/10
(supply-side) - Regulatory environment perception survey
- Research challenges
- Challenges policy recommendations
31. RIA and ICT research
- RIA Network is one of the research networks
originally started with funds from IDRC - Network has grown from 2004 and now consists of
18 African countries - Purpose of RIA research is
- to create a rich evidence base of the ICT sector
developments in selected African countries to
enable comparison of policy outcomes in different
countries against national strategies and sector
performance ? influence ICT policy - Kenya team consists of
- 1. Prof. Timothy M. Waema 4. Prof. Meoli
Kashorda - 2. Ms Margaret Nyambura 5. Dr. Monica
Kerrets- - 3. Dr. Catherine Adeya Makau
42. Access and usage demand survey
5Methodology
- Use of NASSEP IV sampling frame KNBS
- Sample 1461 HHs
- Major urban 584 (40)
- Other urban 439 (30)
- Rural - 438 (30)
- HH selection
- Uniform sample of 24 HHs in each cluster
- 1st HH randomly selected in each cluster
- Next HH systematically determined (last HH
interval) - Provision for replacements for vacant, demolished
or households whose occupants were not available
after a maximum of three call-backs - Respondents selection
- Head of HH or next most senior member of HH
- Data collection using PDA analysis by SPSS
6Key findings
7HHs with computer Internet
8E-mail presence
9Reasons for not using Internet
10Internet tariffs 20 hrs/month
11Monthly Internet expenditure
123. ICT sector performance review 2009/10
13Methodology
- Review of documents, e.g. CCK publications
- Review of websites of operators, CCK, etc.
- Telephone interviews with selected persons
14Key findings
15Summary of telephony services
- Fixed telephone services
- Connections been declining since end of monopoly
- Slight growth in 2009 due revitalisation of
Telkom Kenya following its privatization in 2007 - Phenomenal growth of mobile services eaten into
this market - Fixed wireless telephone services
- Not been growing much
- Expected to grow with migration to the Unified
Licensing Framework
16- Mobile telephone services
- Phenomenal growth (51.2 penetration by June
2010) - Growth can be attributed to
- the competitive effects resulting from the
increased number of mobile operators - increased mobile coverage
- aggressive marketing through increased offers and
promotions, esp. availability of low denomination
calling cards - increased affordability of handsets
- Increased infrastructure sharing among the mobile
phone operators - Safaricom shares towers with Zain and Orange
through reciprocal arrangements - Essar Telecom Kenya (Yu) also shares Zains
towers and base stations
17(No Transcript)
18Interconnection rates fixed to mobile phones
(USD) (2009/10)?
19Mobile termination rates in US cents (Sep 2010)
20Internet users
- Have been growing slowly, with phenomenal growth
2009/2010 - 2.90m June 2008
- 3.65m June 2009 (9.5 penetration)
- 7.83m June 2010 (20 penetration)
- Growth in 2009/2010 largely due to
- entry of mobile operators
- aggressive rollout of data services by mobile
operators, esp. Safaricom - increased access to social networking sites
through mobile phones that has become popular
among the youth in the country - Internet penetration figures of other countries
- 33.4 Mo 28.9 Nig 20 Ke
- 10.8 SA 9.6 Ug 5.3 Gh
- 4.1 Rw 1.6 Tz 0.5 Et
21Commercial broadband bandwidth cost (Feb 2010)
Guaranteed bandwidth (Kbps) CCK Avg Sep 2009 Op 1 Feb 2010 New as of old tariff Op 2 Feb 2010 New as of old tariff
256 38,625 12,500 32.4 12,000 31.1
512 72,276 23,000 31.8 24,000 33.2
1024 282,102 lt3,500 48,000 600 17.0 48,000 600 17.0
Note Retail prices have been slow in coming
down!!
224. Regulatory environment perception survey
23Background
- What?
- A perception survey of the Telecom Regulatory
Environment (TRE) in Kenya from 57 industry
experts from 3 balanced sectors - Operators, consultants, CSO/public
sector/researchers - When?
- Jul-Aug 2009 (before i/connection determination
2) - Why?
- Gather perceptions of the telecom regulatory and
policy environment in the country - Gauge the strengths and weaknesses of the
environment - Use the results to influence changes in the ICT
policy and regulatory environment in Kenya - Benchmark with other African countries
- Results ca be used as a tool for investors to
assess regulatory risk in a country
24Data collection
- Assessment of three sectors
- Fixed services, Mobile services, ISP/VAS services
- For each of the 3 sectors, assessment of 7
dimensions - Market entry
- Allocation of scarce resources
- Interconnection
- Regulation of anti-competitive practices
- Universal service obligation
- Tariff regulation
- Quality of Service
- For each dimension, rating the quality of the
regulatory environment on a scale - 1 highly ineffective to 5 highly effective
25Key findings
26Mobile services
27VANS/ISP services
28Regulation of interconnection
29Regulation of anti-competitive practices
30Quality of services
31Average satisfaction rate
325. Research challenges
- Difficult to obtain some of the data, esp.
Financial data - investment and revenue - Most sector-oriented data not available
- Limited information in operators websites
- Some dont publish the tariffs on the web
- Email contacts dont work - except customer
service email whose directed queries were rarely
answered - Offers and promotions that made it challenging to
establish the actual tariffs - CCK information often differed from the operator
data - While respondents promised to respond to the
online regulatory review, most did not
336. Challenges policy recommendations
Challenge Policy recommendation Timing
National ICT policy not in tune with current realities Update the existing ICT policy through stakeholder participation June 2011
Regulations not supported by key stakeholders Review regulations with support of key stakeholders March 2011
High retail cost of broadband Institute a regulatory mechanism(s) to bring down retail broadband tariffs March 2011
34Challenge Policy recommendation Timing
ICT is not real sectors, e.g. cannot obtain aggregated socio-economic data on ICT employment, GDP contrib., products, etc.) MoIC and KNBS to engage in a process that will create a single ICT/ITES sector and mainstream it into the national planning and operational frameworks (e.g. KNBS can collect data on ICT/ITES as a sector like all sectors) Dec 2011
35Challenge Policy recommendation Timing
No institution has explicit mandate over ICT sector data Give legal mandate over ICT data to one of the existing institutions June 2011
ICT sector data is not accurate up-to-date Body to regularly collect and provide accurate data on ICT sector, collaborating with KNBS Conti-nuous
Independence and power of the regulator Strengthen CCK to be a more independent powerful converged regulator ?