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OUR MATERIAL MATTERS

| GOVERNANCE, RISK & REGULATION

| NETWORK QUALITY |

ENVIRONMENTAL RESPONSIBILITY | INNOVATION |

34

NETWORK AVAILABILITY AND STABILITY

The stability and availability of our network remains a critical necessity. Any

interruption in energy supply, such as grid electricity outages and national

shortages of diesel fuel, poses a direct challenge to the continuity of our

operations. Our response to this issue is primarily managed through our service

and energy availability rates. Our Service Unavailability Rate (SUR) is calculated

by dividing the minutes of downtime per week per network element by the

number of sites in our network.

FY17 FY16 FY15

Radio Access Network Service Unavailability Rate (minutes)

22.9 41.5 60.03*

* SUR measurement started midway through the financial year.

As the preceding table shows, the SUR for the Radio Access Network was reduced

from 41.5 minutes in FY16 to 22.9 minutes in FY17. While the reduction is a satisfying

achievement and reflects the stability of our network, our target for the year was

an SUR of below 20 minutes. The major contributors to our FY17 SUR were Power

Outages and Transmission Failures caused by fibre cuts, in particular. Small Cells

also contributed to our failure to achieve the target due to their lower resilience.

Insecurity in parts of the country also had an impact on the restoration of services

at remote locations.

ENERGY EFFICIENCY

Our network uses a variety of energy sources, including national grid, diesel

generator, deep cycle battery and renewable energy (solar) solutions. The

network continues to grow in size and sophistication every year and so making

it more energy efficient and intelligent remains an ongoing priority. Our vision

is still to create a powerful, streamlined network that uses the minimal amount

of energy to deliver its growing array of services. One that transforms the lives

of the communities it serves with the lightest of environmental touches. One

way we manage this ambition is to measure our performance against energy

consumption targets (reducing the amount of energy consumed at sites by

deploying more energy-efficient technologies and alternative energy solutions).

* Energy consumed is electricity, diesel and solar. The sources are supplier monthly fueling data and KPLC bills. Solar

energy is only measured at some sites, as such we have extrapolated the solar data to the other sites. Energy mix

influences the cost.

SDG 9

SDG 7

FY15

48,614

52,000

51,000

50,000

49,000

48,000

47,000

46,000

51,626

50,292

FY16

FY17

Cost of Energy Consumption by Site*

YEAR

COST PER MONTH (KES)

“Our vision is still to create a powerful,

streamlined network that uses the

minimal amount of energy to deliver its

growing array of services.”