Business
Safaricom’s Licence Renewals Could Lock In Dominance and Open a New Era of Costly Telecom Bills
For the first time in years, Kenyans have an opportunity to influence the conditions placed on Safaricom’s power.
Renewal of NFP-T1 and IGSS licences could increase data and call prices
Safaricom is seeking to renew its two most powerful licences, a move that could cement its control over Kenya’s telecom infrastructure and push consumer costs higher at a time when households are already strained by rising prices.
The applications, quietly tucked into a November 21 Gazette notice, relate to the NFP-T1 and IGSS licences which give Safaricom sweeping authority over national infrastructure and international communication routes.
Industry analysts warn that renewal without new safeguards could deepen a monopoly that has thrived for years under weak regulation.
The NFP-T1 licence allows Safaricom to operate the infrastructure backbone that every Kenyan relies on, from cell towers to data centres, while giving it access to critical spectrum bands.
Previous studies show that markets dominated by a single operator often suffer data prices up to 30 percent higher than those with strong competition.
The IGSS licence places Safaricom at the heart of international traffic, making it the gatekeeper of all inbound and outbound calls and data.
Ongoing disputes over spectrum fees and penalties are expected to shape the renewal terms and could translate into higher tariffs as the company moves to protect its revenue.
However, the biggest public concern is data privacy.
In recent years, Safaricom has faced multiple accusations of leaking subscriber information to law enforcement without due process.
Rights groups say the company’s relationship with state agencies exposes millions to surveillance risks while Parliament continues to probe alleged breaches.
The CA is now inviting public comments for 30 days.
For the first time in years, Kenyans have an opportunity to influence the conditions placed on Safaricom’s power.
Whether the public intervenes could determine whether connectivity becomes more affordable and secure, or whether the next chapter belongs to an even stronger telecom giant.
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