Safaricom warns against high county levies on fibre network
About Us Kenya ICT Press Safaricom warns against high county levies on fibre network
BUSINESS DAILY By OKUTTAH MARK
Friday September 13, 2013
County governments charging exorbitant way leave fees risk being shunned by broadband infrastructure providers, mobile telecoms firm Safaricom has warned.
Safaricom, which has started laying a 2,400-kilometre fibre optic cable at a cost of Sh14 billion Thursday said the county governments should not view the fibre network as a revenue stream but a long term investment and a catalyst for businesses.
The warning by the leading mobile operator comes barely a week after news that Jamii Telecoms had abandoned laying fibre in Laikipia County citing high charges.
The county government demanded Sh600 for every metre excavated by the firm, forcing it to abandon the work midway.
Telecommunication infrastructure especially broadband is key to delivery and accessing of central government services such as filling of tax returns online.
“Counties that charge exorbitant way leave fees should take note that no broadband provider will invest in such areas and as such they should consider their decision,” said Bob Collymore, Safaricom’s chief executive Thursday during the firm’s Annual General Meeting (AGM).
“We would also urge county governments to resist the temptation to levy new fees on telecommunications infrastructure as this will inevitably result in mobile operators de-prioritising these counties,” he added.
The high fees charged by some counties has also caught the eye of the ICT Cabinet Secretary Fred Matiang’i who last week said there is need to harmonise policies that are supportive to infrastructure development as the county governments were not charging a uniform way leave fee.
A national broadband strategy was launched a month ago and it is intended to support the deployment of ICT in various economic and governance services.
But the minister said the way leave fee was becoming a big challenge in the counties.
The broadband plan envisages an open access, technology neutrality, sustainable and equitable market-based investment opportunities.
Dividend payout
Safaricom shareholders passed the 31 cents dividend payout which is 41 per cent higher than last year’s 22 cents per share. This means that the shareholders will get 31 cents for every share held offering relief to the long-suffering investors.
The 31 cents dividend came as Safaricom once again broke its own money minting record with a Sh17.5 billion after-tax profit for the year ended March 31.