Tuesday, December 2, 2008

Kenya urges mobile phone firms to cut tariffs

NAIROBI, Nov. 27 (Chinese media) -- The Kenyan government

has called on mobile phone service providers to lower tariff charges to increase

the usage of mobile phones in the country.

Prime Minister Raila Odinga said Kenyans are

concerned that telephone charges especially for roaming services have been

exorbitant and beyond the reach of many and expressed confidence that increased

competition in the sector will have a positive impact on pricing and services

offered.

"There is need for mobile phone service providers to

address the issue of costs. I believe charges could come down further and that

would get more people talking, more businesses running and more people

employed," he said.

Speaking on Wednesday night when he launched the

country's fourth mobile phone operator, Econet Wireless Kenya (EWK) services,

into the Kenyan market, Odinga said people wanted reliable and affordable

services that are also efficient and diverse in what they offer.

He noted that the mobile phone had great power and

influence on the lives of Kenyans even in the rural areas.

He cautioned that the fact that Kenyans especially in

the rural areas who were unable or even need landlines had embraced the mobile

phone so fast and so religiously should be lesson to those entering the market

of the capacity of Kenyans to move on and leave them behind if they did not meet

expectations.

Odinga pointed out that the government had embraced

competition as a way of improving on both the quality and quantity of services

provided, and emphasized that it would make competition ethical and fair.

"During the monopoly in the telecommunication sector,

services deteriorated and dwindled at the same time. Today, we have embraced the

tested philosophy that the private sector, operating in a competitive

environment is the best safeguard to the interest of our people who consume

services," he said.

The PM stated that since the liberalization of the

telecommunication sector, especially in the provision of the mobile phone and

Internet services, the country had reaped huge benefits in monetary terms and in

the expansion of services, improvement in quality and in reduction of costs both

in the Internet and mobile phone services.

He emphasized that the government would continue to

provide an enabling environment to ensure the telecommunications sector

contributed to the development of the economy by providing rapid, efficient,

reliable and affordable communications throughout the country.

Saying that information was power, Odinga observed

that when people talk and share information they come up with ideas on a wide

range of areas, including business, education and health. Nobody is in a better

position to play this role of information sharing than the mobile phone service

provider," he said.

The premier at the same time stated that Kenya was

positioning itself for the provision of offshore outsourcing services to benefit

from more information services businesses from abroad.

He observed that with political stability, Kenya

could be one of the world's fastest developing outsourcing destinations due to

the large English speaking, educated population, low costs and proximity to and

traditional ties with European and Middle Eastern companies.

"Already we have providers of this service who serve

customers in the United States, Canada and Europe. They employ about 3,000

people mostly youth," he said.

Saying the biggest obstacle has been the local data

and telecommunication infrastructure, the Premier noted to address the

challenge, the government had invested 100 million U.S. dollars in the East

African Marine Systems, an undersea cable to connect Mombasa with the United

Arab Emirates.

He said the project slated for completion by 2010 is

expected to bring the cost of connectivity down to the levels in India. Odinga

added that the government plans to complete a 5,000-seat technology park and

export promotion zone by 2012.

The Minister of State for Public Service Dalmas

Otieno said the government was keen on redressing the huge disparity of

telephone usage between the rural and urban areas.

Otieno challenged telephone service providers to roll

their services to the rural areas to make communication accessible to all at

affordable rates.

Otieno, who represented the Minister for Information

and Communication Samuel Poghisio, noted that expansion and improvement of

telecommunication infrastructure in Kenya would transform the country into a

communication hub. 

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