Regulator rolls out stiff fine for telecoms offering poor services

The Communications Commission of Kenya (CCK) has revised upwards the penalties for mobile phone firms that fail to meet the set quality of service (QoS) standards to 0.2 per cent of the companies’ turnover from Sh500,000. PHOTO/FILE 

In Summary

• CCK has revised upwards the penalties for mobile phone firms that fail to meet the set quality of service (QoS) standards to 0.2 per cent of the companies’ turnover from Sh500,000.
• Effective 2015, the new penalties are expected to intensify the efforts by mobile firms to improve service provision given the hard-hitting effect the fines would have on their finances.

By Lilian Ochieng'
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Telecom companies offering sub-standard services will face stiffer penalties in a fresh plan by the business regulator to ensure quality in communications.

The Communications Commission of Kenya (CCK) has revised upwards the penalties for mobile phone firms that fail to meet the set quality of service (QoS) standards to 0.2 per cent of the companies’ turnover from Sh500,000.

“The enhanced penalties will act as a warning to the operators to strive in offering quality services to consumers,” CCK public relations manager Christopher Wambua said.

Effective 2015, the new penalties are expected to intensify the efforts by mobile firms to improve service provision given the hard-hitting effect the fines would have on their finances.

For instance, going by Safaricom’s 2013 financial results showing Sh124.3 billion turnover, the new regulation would see the telecom part with over Sh200 million in fine.

The penalties come in the wake of a new report released by the regulator which showed that none of the four mobile operators in Kenya met the required service standard.

The CCK sets a minimum score of 80 per cent to be met by telecoms based on eight parameters for them to be compliant.

The indicators include call set up success rate, dropped calls, blocked calls, speech quality, handover success rate, call set up time and signal strength.

In the 2012/2013 review, Telkom Kenya recorded 62.50 per cent performance beating Safaricom, Airtel Kenya and Essar Telecom that tied at 50 per cent.

“We have written letters to the operators to explain their performances, and they have one year duration to rectify their services failure to which the new penalty will take effect,” Mr Wambua said.

Speaking to the Saturday Nation, Safaricom CEO Bob Collymore said the firm had identified the problems in its network and has started rectifying.

“We applaud CCK for the good service and we are willing to cooperate for a better service provision this financial year.

The tests were conducted over a 12-month period starting June 2012 to May 2013 and we are already working on these issues,” Mr Collymore said.

Telkom Kenya managing director, Mr Mickael Ghossein, whose firm emerged best in the review said the company is willing to work with CCK to understand the parameters of the assessment with a view to improving its services.

“We are pushing for good quality network that will enable us offer quality services,” said Mr Ghossein.

The Consumer Federation of Kenya (Cofek) secretary-general Stephen Mutoro, however, said the report is a reflection of widespread complaints received from consumers on connectivity of the various networks in the country.

He said that if the recent increments are not imposed soon, Cofek will “move to court to ask providers to compensate consumers on the inconveniences,” said Mr Mutoro.