NAIROBI, Kenya, Jan 6 – The Communications Authority of Kenya (CA) has proposed new regulatory measures to combat the rising tide of illegal Internet Service Providers (ISPs) operating in urban centers across the country.
This includes introduction of levies that would impose stricter controls on both illegal and legitimate ISPs.
The proposals include adjustments to the licensing framework for legitimate operators under the NFP-T3 category and the introduction of a new NFP-T4 license aimed at smaller providers.
Under the new regulations, NFP-T3 licensees would be allowed to expand their geographical coverage from one county to three counties, provided they comply with the new licensing restrictions.
Operators with an NFP-T3 license will also be allowed to deploy satellite systems, including satellite hubs, without technology limitations, provided they adhere to county scope limitations.
However, those found operating outside the three-county limit without upgrading to an NFP-T2 license will face penalties of 0.2% of their annual gross turnover for each additional city or county they serve without proper authorization.
The proposed NFP-T4 license category would limit operators to a single county, encouraging smaller-scale providers.
This license would also come with a specific fee structure, including an application fee of Sh1,000, initial fees of Sh15,000, and an annual operating license fee (AOL) of Sh15,000 or 0.4% of annual gross turnover, whichever is higher.
The license term would be set at 15 years.
Additionally, operators with an NFP-T4 license could eventually upgrade to an NFP-T3 license after meeting the necessary criteria, which would include expanding their operational scope.
Applicants for the NFP-T4 license would also be required to apply for a County ASP License simultaneously.
This additional license would carry its own fee structure, including an application fee of Sh. 1,000, initial fees of Sh10,000, and an annual operating license fee (AOL) of Sh10,000 or 0.4% of annual gross turnover, whichever is higher, with a 15-year license term.
CA says these unauthorized operators have been using unlicensed wireless technologies and even laying fiber optic cables to provide internet access, particularly in densely populated areas.
According to the Authority, these illegal ISPs are exploiting licence-free frequency bands designated for industrial, scientific, and medical (ISM) applications, to build out local networks without oversight.
While these networks are typically limited to specific neighborhoods or estates, their rapid growth poses a significant challenge to legitimate service providers operating under licensed frameworks such as the NFP-T3 category.
“The Authority has observed a growing increase in unauthorized ISPs across the country.Most of them have deployed their networks using wireless technologies on Licence-free frequency bands intended for industrial, scientific, and medical applications (ISM),”read a report by CA in part.
