Blow for radio frequency speculators on new rules
From Left: Strathmore University School of Computing and Engineering Dean Eng. Dr Julius Butime, Communications Authority of Kenya Frequency Spectrum Management Director Mohammed Haji, British High Commission Science, Technology Research Innovation Digital and Education (STRIDE) Counsellor Nicole Gregory and Dynamic Spectrum Alliance president Dr Martha Suarez during the Spectrum Sharing Studies handover workshop at the Strathmore University's iLab on February 3, 2023.
The Communications Authority (CA) has implemented new regulations imposing mandatory approval for the transfer of radio frequency spectrum as part of efforts to weed out cartels that have created a speculative black market for the assets and improve the safety of channels.
According to the new guidelines, any entity seeking to transfer a frequency permit is required to formally apply to the regulator on the condition that they have held the spectrum for a minimum period of two years.
“The objective is to promote and enhance transparency and predictability in facilitating frequency transfers and act as an instrument that will aid efficient management of the scarce spectrum resource,” the regulator said.
“It is also meant to remove regulatory barriers and increase access to the spectrum, which is part of the authority’s secondary market initiatives to ensure efficient use of the spectrum.”
Previously, there had been no rules on frequency spectrum licence transfers from one entity to another, resulting in chaos through hoarding and speculation. This was mainly witnessed in frequency bands with high demand and low supply, such as FM broadcasting bands, and in the spectrum required for use in deploying new technologies.
“There are already signs that such an accumulation has been occurring, for example, where some operators have accumulated substantial holdings of spectrum through the acquisition of telecom licensees,” said the CA.
Demand for FM radio frequencies has increased sharply as community groups and small commercial stations seek to serve the needs of consumers locked out by national outlets.
Public register
Under the new rules, the CA will maintain a public register on its website of all frequency transfer deals, including the identity of the transactors to enhance transparency.
“The authority shall license the transferor and transferee.
“In the event, the transferee is not a licensee, then they will obtain the relevant licenses from the authority before the frequency transfer request is considered,” said the communications regulator.
The communications regulator said government ministries, departments, and agencies (MDAs) would be eligible to transfer spectrum.
“Since they (MDAs) have public obligations, they will be handled on a case-by-case basis. They will be required to comply with all license conditions,” said the CA.
The regulator, in 2020, published guidelines that introduced a ‘use or lose it’ policy on the frequency spectrum.
This will see the regulator repossess unused spectrum which has been exploited by cartels to profiteer through deals cut in the black market to the detriment of prospective operators.
