4G Network Deployment Dilemma

Last Updated 13 years ago by Kenya Engineer

Open Access or the Public Private Partnership (PPP) model?

With Kenya geared up for the deployment of the 4G Network, some telecoms have varying ideas regarding the model to use in this venture. Ericsson is calling on Kenya to adopt the Open Access model whereas in May, MTN was for the proposed idea of the consortium which is a Public Private Partnership (PPP) model involving the Government-through Treasury and Safaricom, Telkom Kenya-Orange, Airtel, Essar Telecom’s yuKenya, Kenya Data Network (KDN), MTN, Alcatel-Lucent and Epesi Communications.

In his defense, Ericsson Kenya’s business development director, David Ochanda said that by implementing an Open Access model the whole country would benefit, instead of just a small portion of the population.

“The Open Access model, if adopted by the Kenya government and by extension the IT industry, will see the network being deployed countrywide. When left to deploy the LTE network as proposed in the consortium model, the MNOs will only focus on high potential areas where they can get maximum revenues thereby further minimizing access to broadband services by underserved regions,” said Mr. Ochanda.

Whereas, MTN’s Business Kenya Managing Director, Tom Omariba holds that the consortium is the most ideal for the deployment of 4G or Long-Term Evolution (LTE) infrastructure in Kenya as it would lead to the provision of enhanced and more efficient ICT services in the country.

“We started from 2G, then moved to 3G and are now set to deploy the 4G or LTE network. The LTE infrastructure has several benefits the main ones being that it would enable users to do more in terms of data speeds and volumes that can be transferred as well as the fact that there is no need for many base transmission stations (BTS),” said Mr. Omariba.

Speaking during a panel discussion on digital ecosystem evolution at the 9th East Africa Com conference held at Nairobi’s Safari Park Hotel on Tuesday May 21 – 22, also said that maintenance cost of the fourth generation network would in time subside.

“The costs of maintenance of the network will eventually come down as one BTS can cover longer comparatively longer distances, meaning that with LTE, coverage is more for the same amount of initial capital expenditure or CaPEx,” said Mr. Omariba.

According to Mr. Ochanda, having an Open Access model will give access to the infrastructure to clients other than the owners, for a fee. He said that Kenya could have been a leader in Open Access before any other African country, but Rwanda has beat Kenya to it.  

“This has not been realized, with Rwanda now expected to lead the region by deploying its LTE via the Open Access”.

Ericsson proposed to build a country-wide 4G/LTE network for free and recover the costs after a 15-year period. The implementation of the initial phase of the country’s LTE project is set to cost KSh8.4 billion. Currently, South Africa, Tanzania, Angola and Rwanda have LTE/4G networks.