opportunities available for investment in the telecommunication sector.
The structure provides for the following licences under Internet facilities and
services:
o Public Internet Access services (ISP)
o Internet backbone services (IBS) and
o Internet exchange point (IXP)
Based on this structure the Commission has to date licensed 76 ISPs including
Jambo Telkom Limited (herein after referred to as JTL) a 100% fully owned
subsidiary of TKL.
4. ISP licence
The market structure provides for the licensing of Internet service provision under
an Internet service provider licence. The ISP is required to lease capacity from
licensed network operators including TKL and Public data network operators.
TKL applied for an ISP licence vides their letter dated 17th March 2000. In its
response the Commission vides a letter dated 6th April 2000 noted with concern
that TKL had been exclusively granted an Internet Backbone systems and service
Licence and consequently TKL could not offer similar services in competition
with licensed ISPs. TKL was advised to establish a subsidiary in order to be
licensed to provide Internet services.
TKL then, formed a subsidiary, JTL and applied to be licensed as an ISP in a
letter dated 2nd October 2001. The intention to licence JTL was published in the
Kenya Gazette dated 9th November 2001. This notice received objections from
Telecommunication Service Providers of Kenya (TESPOK) based on the fact that
JTL was 100% owned subsidiary of TKL and that TKL had exclusivity in the
provision of Internet backbone services. Subsequently, and in cognizance of
objections received JTL was granted an ISP licence on 8th April 2002 with strict
conditions to prevent cross subsidy, control monopolistic tendencies and maintain
fair competition given that TKL has monopoly and exclusivity in the provision of
access infrastructure and the International Internet gateway.
The following clause was included/inserted in the JTL licence
10. Prohibition of cross-subsidies: The licensee shall not give subsidies or crosssubsidies or permit itself to be subsidized or cross-subsidized or give or receive
undue preference to or from as the case may be any of its associated business or
persons as concerns:
o the provision of internet services
o any other licences granted to the licensee by the Commission