Subject to the foregoing analysis the Commission rules that:
1. Provision of Internet services to end-users shall be provided under an ISP licence,
only.
2. Provision of Internet services does not constitute services under the VAS licence.
3. The pricing of all telecommunication services including dialup and ADSL
services should be non-discriminatory and cost oriented.
4. TKL has contravened licences conditions in the International Internet Backbone
services licence.
5. TKL, by providing Internet access direct to end-users bundled with infrastructure,
has provided the services in an anticompetitive and unfair manner.
6. TKL from the date of this ruling, immediately cease the provision of ADSL and
944 national dialup services to new customers, in the current 'bundled' form until
a negotiated agreement between TKL and ISPs is arrived at. That TKL inform
existing customers of the discontinuation of the service, to facilitate migration to
licensed ISPs within fourteen (14) days of this ruling.
It is the recommendation of the Commission that the agreement be of commercial nature
and should include appropriate pricing and mechanisms to deliver affordable Internet
access to end-users. Additionally, the said agreement, or any other agreement, must
comply with relevant provisions under the regulations and the market structure.
Pricing of services
1. Pricing of Analogue Private Wire (APW) services
The Commission noted that TKL has effected numerous price changes for APW
from Kshs 3,000 per month for circuits provided pre-2001 and Kshs 7,250 for
circuits provided after 2001 to Kshs 16,000 effective 1st July 2004. TKL has
further reviewed and communicated a downward price change for APW to Kshs
10,000. The Commission encourages TKL and ISPs to enter into commercial
negotiations to determine the appropriate pricing for the service taking into
consideration end-user demand for affordable services.
The Commission rules that TKL establish a non-discriminatory, cost-based and
firm pricing policy, sensitive to the needs and demands of consumers and give
sufficient notice of the proposed price changes to the Commission and consumers
as stipulated in the regulations.
Quality of service
1. QOS on Jambonet
TKL is licensed to provide Internet backbone facilities and services offering both
uplink and downlink international connectivity to Internet service providers