Kenya to ready roll-out $500m 4G network by 2013

KENYA aims to roll out a high-speed fourth-generation (4G) mobile data services network by 2013, at an estimated cost of $500 million, to meet growing demand for wireless access to the internet in east Africa’s largest economy.

Friday, May 18, 2012

KENYA aims to roll out a high-speed fourth-generation (4G) mobile data services network by 2013, at an estimated cost of $500 million, to meet growing demand for wireless access to the internet in east Africa’s largest economy.Bitange Ndemo, permanent secretary at the ministry of information and communication, told Reuters that all Kenyan mobile phone firms had signed up to the new project and it was now awaiting approval from the ministry of finance."We need to have it (the network) before the next elections (due in March 2013). That is what we are targeting,” he said late Thursday on the sidelines of a U.S.-Kenya conference on infrastructure projects.So-called 4G LTE (long term evolution) networks promise download speeds more than five times those of 3G and are designed for data, rather than voice, as well as supporting high-definition video conferencing.Data is seen as a major growth area in the telecoms sector, prompting firms to invest heavily to offset the impact of falling voice revenues on the back of a price war.At present, Safaricom, 40 percent owned by Britain’s Vodafone, is the only network in Kenya to have fully rolled out a 3G network across the country and is already testing the LTE technology at five sites.Other firms with 3G licences are Telkom Kenya, controlled by France Telecom’s Orange, and the Kenyan unit of India’s Bharti Airtel. Both Orange and Airtel are in the process of rolling out 3G networks countrywide.The first phase would involve rolling out the 4G network to the country’s 47 counties at a cost of $100 million, a figure that would rise further in the next phase that would see the new service connected to the entire country’s network.  "We have finished with the study. We have sent it to the Ministry of Finance. we are just waiting for the approval and then we hit the road,” Ndemo said."Phase one... we will go to the counties, and leveraging on the existing base stations, but by the time we cover everywhere it would be even up to $500 million,” he said.Mobile carriers worldwide are increasingly upgrading to LTE networks that support high-speed wireless services as consumers use tablet computers and smartphones to surf the web.In September, the ministry said potential investors should have at least a 20 percent Kenyan shareholding and the financial and technical capability to roll out commercial services to the country’s 47 counties within a year of forming a partnership with the government.