Factors influencing mobile telecommunication infrastructure sharing in Kenya

Abstract

The Government of Kenya recognizes Information and Communication Technology (ICT) as a strategic enabler to achieve its aspirations of transforming Kenya into a digital-driven economy by providing universal access to quality, affordable, and reliable ICT services. Digital connectivity has the potential to support development through digital transformation, but universal access to the internet is crucial to realize its full benefits. In many developing countries, unaffordable broadband internet access is a major obstacle to digital inclusion, leaving large populations offline. Infrastructure is lacking, especially in sub-Saharan Africa, hindering sustainable development. To address this, mobile phone service providers must invest in infrastructure development to meet the increasing demand for ICT services. However, rapid technological evolution, regulatory requirements, and heavy capital investment require new strategies. Furthermore, connectivity costs in Kenya remain high, with the bottom 40% spending an average of 45% of their gross income on fixed broadband. Infrastructure sharing among mobile operators could accelerate digital connectivity at a lower cost, especially in underdeveloped markets where returns on investment are limited, leading to improved sustainability. Despite its potential benefits, infrastructure sharing among mobile operators in Kenya is low, and the policy framework for shared infrastructure has not been fully utilized. This study investigates the factors that influence infrastructure sharing among mobile operators in Kenya, revealing that competition, technology, and regulation influence network infrastructure sharing, leading to a significant reduction in the cost of network infrastructure roll-out and capacity expansion. This improvement in infrastructure usage efficiency enables telecom operators to have a competitive advantage through new product development and innovations. The study recommends the adoption of initiatives to promote infrastructure sharing as a pathway towards growing the digital economy, which is crucial for economic development, social well-being, and job creation. The study found that the factors studied influenced infrastructure sharing among mobile operators where competition, technology, and regulation were significant factors. Implying that promoting infrastructure sharing initiatives could lead to improvements in usage efficiency, increased innovation, and economic growth.