Telkom Internet deal on the line after switch-off

Corporate News

Fibre cables: The ICT Authority will advertise contract this week. PHOTO | FILE 

By OKUTTAH MARK

In Summary

• Last week Telkom Kenya is said to have switched off its Kenstream broadband wireless services over a payment delay, affecting services such as Integrated Financial Management Information System (Ifmis), before the government paid and service was restored.

Telkom Kenya could lose a contract of linking key state departments to broadband wireless Internet, days after it pulled the plug on the government agencies over delayed payments.

The ICT Authority (ICTA), the government agency that is mandated with management of all government ICT functions, is this week expected to advertise for contracts to offer internet connection, including the point-to-point link that is currently offered by Telkom Kenya through Kenstream.

Early last week Telkom Kenya is said to have switched off its Kenstream broadband wireless services over a payment delay, affecting services such as Integrated Financial Management Information System (Ifmis), before the government paid and service was restored.

Ifmis is an automated budgeting, procurement, expenditure management and reporting system for the national and county governments.

The Business Daily could not establish how much the government owed Telkom Kenya.

The government is, however, said to be leasing 11 links from the telco operator.

A source at the ICTA confirmed last week’s switch off of Kenstream but denied that the search for new contractors is linked to the incident, adding that the tender is “driven by rapid technology change.”

“The authority will be putting a tender next week for provision of broadband services,” said the source.

“Telkom Kenya plugged off Kenstream broadband services that link several government departments, but what they were demanding was paid and the services resumed,” the source added.

READ: Telkom Kenya records biggest drop in fixed Internet market

Kenstream is Telkom Kenya’s digital leased line service, provided on a wireless platform, offering a reach from a radius of 10km from each base station. Telkom has eight Kenstream base stations around Nairobi and Mombasa.

The firm invested Sh86.4 million in Kenstream in the mid-2000s.

The Kenstream line tariffs tumbled down from Sh14,400 for 64bps in 2000 to the current estimated tariffs of Sh3,000.

The reduction can be associated with competition in the provision of domestic leased lines following the licensing of several public data network operators and the massive roll-out of inland fibre optic technology by private firms.

The last telecommunications sector report for the year ended June 2015 showed the number of fibre optic subscriptions went up to 93,598 up from 69,373 recorded the previous year, compared to terrestrial, satellite and fixed DSL that had a combined total 20,953 connections over the year