The economic and social impact of broadband is well researched and documented. An increase in broadband penetration has a greater impact on economic development than a concomitant increase in access to other telecommunications services. The World Bank estimates that in low and middle-income countries such as Kenya every 10-percentage point increase in broadband penetration accelerates economic growth by 1.38 percentage points.*  Qiang, Christine Zhen-Wei, and Carlo Rossotto. 2009. “Economic Impacts of Broadband.” In Information and Communications for Development 2009: Extending Reach and Increasing Impact. World Bank Publications.

The economic impact of broadband*  The term broadband is defined differently in different countries, primarily with reference to speed. As such, the term must be understood within a country context and the particular aspects of the broadband value chain should be recognized. Broadband in Kenya is defined “as speeds greater than or equal to 256 Kbps in one or both directions.”[2] In addition, there are several layers in the broadband value chain (wholesale, retail, applications and content) each of which must be treated differently. is wide – it positively impacts innovation, job creation and employment, as well as the software and manufacturing industries. It promotes access to information – thus promoting transparency and good governance, critical in a country like Kenya with a historic reputation for corruption, with related political and social benefits. In recognition of the critical role of broadband, and in light of the Ministry of Information and Communications’ objective of moving Kenya towards a Knowledge Based Economy by 2012,*  Ministry of Information and Communications Towards a Knowledge Based Economy: Strategic Plan 2008 – 2012. http://www.information.go.ke/index.php?option=com_content&task=view&id=239&Itemid=370 policy makers, regulators and industry players alike are seeking ways to increase broadband coverage and increase usage. In light of the high costs associated with deploying broadband networks, and the fact that broadband is part of an ecosystem which includes demand side factors such as applications and content, and in which users are central, tackling the broadband divide is not quite the same as tackling the digital divide which has been primarily conquered through mobile phones with light touch regulation.

Developing country policy makers in the ICT sector have spent the last 15 to 20 years encouraging the competitive supply of networks and services through market reform processes. The same policy makers are now faced with the challenge of moving beyond networks and the need to start developing strategies to increase demand. They are furthermore faced with the glaring reality of the cross cutting impact of ICTs and the need to recognize that ICT access is not just a Ministry of Information and Communications issue – government agencies responsible for the ICT sector now need to work more closely with other public sector stakeholders to create content (e.g. online application forms, e-government solutions, online payment mechanisms, etc.) to drive demand in order to make broadband access meaningful. The policy response to broadband is thus changing.

The Government of Kenya recognized this relatively early and in 2006 had included a holistic approach to ICT in its national Vision 2030, its National ICT Policy and its approach to regulation. Although there is no separate Broadband Policy, making the Kenyan approach seem fragmented at a glance, there is a holistic ICT framework with strong dependencies on access to high-speed connectivity in Kenya. The national framework recognizes that broadband is an ecosystem and as such considers strategies, policies and regulations that address both supply and demand side considerations. The ICT framework is set against the backdrop of the MOIC Strategic Plan and includes the regulatory incentives provided by the Communications Commission of Kenya (CCK) relating to infrastructure sharing and spectrum licensing, as well as supply side interventions made by agencies such as the Kenya ICT Board which are discussed in section 6.2. The Kenyan framework recognizes that there are two types of broadband capacity – network capacity, i.e. the development of high-speed data communications networks, and human capacity enabling the use of the services through the development of relevant content and applications to promote the use of these networks. Building capacity in both areas is what will make broadband matter.