Nairobi - The Kenyan Government will license a third mobile phone provider by December this year, Transport and Communications Assistant Minister Andrew Ligale has said.

Ligale said that bids for the same are expected to be completed by this month, adding that a licence for the third mobile provider will be issued in September for them to start operating by December 4, 2003.

Ligale was answering a question by Mandera Central MP Adan Billow Kerrow (Kanu) who had sought to know why Telkom Kenya continued to enjoy a monopoly as the only internet backbone service provider in an era of liberalisation.

Kerrow had also sought to know since the corporation had failed to provide basic communication services such as reliable fixed line services, whether the Minister could consider opening up the industry to other providers. He said this failure by Telkom had adversely affected business operations.

Responding, Ligale said Telkom Kenya was mandated the monopoly in 1998 to make it attractive for a certain period of time.

He said this monopoly expires in June 2004 and that the Government has plans to open the backbone as soon as it expires.

He said the Government had restructured the management of Telkom Kenya to improve its efficiency and accountability to its customers.

Kerrow said Jambonet which is the only Internet provider at the moment was licensed subject to certain conditions and wondered why the CCK has not been able to penalise or terminate their licence it for not meeting those conditions.

Ligale, however, said with the restructuring of Telkom Kenya they now expected an improvement in the services by the Jambo net adding that once the exclusivity which expires in 11 months is over others will be accorded licences.

Kacheliba MP Samuel Porghisio (Kanu) said Jambonet was largely behind whereas the whole world was on the IT highway and wondered why the government cannot reconsider it's move on the exclusivity instead of waiting up to next year.

Ligale, however, said they were pushing for Telkom Kenya to improve their services.

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