The Commission today allayed fears that the licensing of Jambo Telkom, a subsidiary of Telkom Kenya Limited, as an Internet Service Provider (ISP) would wipe other ISPs out of business.

Director-General Samuel Chepkong'a assured local ISPs that Jambo Telkom's licence had strict conditions to safeguard against cross-subsidization by the mother company.

Presiding over the official launch of the Kenya Internet Exchange Point (KIXP) at a Nairobi hotel, Mr. Chepkong'a said there were adequate provisions in the Kenya Communications Act, 1998, and the Kenya Communications Regulations, 2001, which the Commission could invoke to ensure the new ISP does not engage in anti-competitive business practices.

"We have taken your views on board. I can assure you that there will be no lopsided competition. We will make sure that Telkom Kenya does not in any way subsidize its ISP business", said the Director General.

He lauded the launch of the Internet exchange saying it would result in faster transmission of electronic mail within the country, and speedy browsing of websites hosted by local ISPS. He added the Exchange would free Jambonet, the sole Internet backbone in the country, of looped traffic, and make access charges cheaper as more ISPs get connected to the facility.

The Director-General said Internet exchange points (IXPs) needed to be replicated across Africa, where the uptake of the Internet had remained low. He noted Africa last year had 4.4 million Internet users, 55 per cent of whom were in South Africa and a further 16 per cent in the Maghreb. This left the entire sub-Saharan Africa with only 1.3 million Internet users.

He announced domain names for Kenya would soon be managed and assigned locally upon the registration of Kenya Network Information Centre (KENIC) to undertake such work.

The Chairman of the Telecommunications Service Providers Organization of Kenya (TESPOK), Richard Bell, said the KIXP would save the country some US$200,000 annually in foreign exchange "by keeping local traffic local".

He noted the KIXP initiative has been recognized and replicated in a number of countries in the continent, and plans were underway for a pan-African exchange point.