Safaricom 2023 Sustainable Business Report

40 OUR BUSINESS OUR STAKEHOLDERS KPI SUMMARY SAFARICOM SUSTAINABLE BUSINESS REPORT 2023 OUR MATERIAL TOPICS MAINTAINING HIGH LEVELS OF COMPLIANCE Our compliance register covers issues such as the number and cost of fines for non-compliance, non-monetary sanctions for non-compliance and legal actions lodged for anti-competitive behaviour. We can once again report that there were no such instances. Other ongoing compliance-related activities were: • The submission of data to the CA every quarter related to the Network Redundancy, Resilience and Diversity (NRRD) guidelines. These aim to enhance the reliability and availability of ICT networks in Kenya. The CA monitors our compliance with measures to improve network redundancy, resilience and diversity (such as multiple routes for data traffic to improve network availability). • Aligning with the Spectrum Management Guidelines issued by the CA in 2020 to help operators use spectrum efficiently and effectively by: - Deploying our network so that coverage is maximised through spectrum-efficient technologies such as LTE and 5G, to improve the performance of our network. - Using a variety of techniques to protect the spectrum against interference with other users. • Scoring 95% in the Quality of Service (QoS) framework issued by the CA which sets the standards and guidelines to ensure that telecommunications services provided to consumers meet certain levels of quality and performance. The framework measures several factors, including call quality, data speed and customer satisfaction. We surpassed the regulatory measure of 80%, making us the only mobile network operator to do so. Our high QoS scores are a result of the investments in our network and our commitment to providing a high-quality service to our customers. • Proactively focusing on renewing our operating licences (a process we began in 2021) which are due for renewal by the end of June 2024. These include the network facilities provider (Tier 1), content service provider and applications service provider licences. MONITORING ONGOING DEVELOPMENTS The Ministry of Information, Technology and Digital Economy has embarked on a process to review the Kenya Information and Communications Act, 1998 (KICA) and attendant regulations to ensure they are aligned with legislative and industry developments. There are certain highlights under the KICA Bill 2023 that we welcome. These include the formulation of guidelines on critical infrastructure assets by the CA. We believe this proposal will enable us to improve our infrastructure and service delivery continually. We also welcome the proposal for SIM cards to be sold through channels other than formal retail outlets, subject to subscriber information being registered accordingly. On the proposal for the CA to have the power to gazette a telecommunication service provider as a dominant telecommunications service provider, our view is that the tenets of the dominance principle remain with the Competition Authority of Kenya. We have submitted our comments on this bill and its attendant regulations and currently await stakeholder forums to discuss the comments raised by industry players. WORKING TO IMPLEMENT THE USF PROJECT PHASE 2 Having successfully tendered for the Universal Service Fund (USF) Project Phase 2, Safaricom was contracted by the CA to supply, deliver, install and commission the telecommunication cellular mobile network active infrastructure and provide mobile services in the listed mandatory areas comprising 57 sublocations. This was achieved despite various difficulties which included pairing with other network facilities providers and having to wait for these operators to complete towers before we could proceed with our part of the implementation. Any delays or issues faced by these operators directly impacted our ability to move forward, leading to unforeseen setbacks and potential schedule disruptions. A further challenge was that the mandatory areas designated for the project were in remote regions. The vastness of these regions, coupled with limited infrastructure and resources, made it difficult to effectively identify and survey the target population, hindering the progress of the project. In addition, we encountered adverse weather conditions which made working conditions unsafe and impractical. Finally, insurgency and attacks on infrastructure necessitated heightened security measures and coordination with local authorities. These in turn created additional complexities, impeding the project’s completion. Against this backdrop, we made progress – by the end of March 2023, 34 sites covering 33 sub-locations were on air providing access to over 90,000 people. This was done in collaboration with the CA and partners such as Seal Towers, ATC Kenya and Alan Dick EA with the following results: