New Bill could require internet providers to adopt metered billing system

New Bill could require internet providers to adopt metered billing system
An internet cable. PHOTO/The Hindu Business Line.

A new bill sponsored by Aldai MP Marianne Kitany aims to revolutionize how internet services are billed in Kenya, proposing the introduction of metered billing based on actual consumption.

This move comes in response to growing complaints from internet users who feel they are being exploited by internet service providers (ISPs) due to opaque billing practices.

The bill, which seeks to amend the Kenya Information and Communication Act, would require ISPs to establish a metered billing system for their customers.

According to Kitany, the legislation is designed to address concerns over excessive charges and the lack of transparency in current billing practices.

"The bill is to provide for metered billing of internet use, based on consumption in order to mitigate exploitation and to secure economic interests of internet users in line with Article 46 of the constitution," Kitany stated in the bill's memorandum of objects.

Under the proposed law, ISPs would be required to implement a metered system that assigns a unique and identifiable number to each customer.

This system would not only track data usage but would also allow for the creation of accurate, consumption-based invoices.

Customers would also be able to verify these invoices.

"The bill seeks to require internet service providers to develop and deploy a quality metered billing system," Kitany said, emphasizing that the new system would ensure fairness in billing and align with the value customers receive from the service.

The bill further stipulates that ISPs must submit detailed reports on their billing systems to the Communications Authority of Kenya once a year.

These reports would include information on the internet meter numbers assigned to subscribers.

This level of accountability, Kitany believes, is critical for safeguarding the economic interests of consumers who have long complained about losing money on unused data packages.

Currently, many users are billed for internet services regardless of whether they have used their data or not.

"An Internet Service Provider licensed under this Act shall submit to the Communications Authority, at least once every financial year, information on the billing system including internet metre numbers issued to subscribers," the bill reads.

The introduction of a metered system would create a more transparent and fair relationship between ISPs and their customers, giving users more control over their internet usage and billing.

The proposal comes amid concerns over how current billing practices work in Kenya’s internet market.

Major ISPs like Safaricom, Airtel, and Telkom, along with smaller providers such as Zuku, Jamii Telecom, and Faiba, offer internet packages with varying pricing models, but these packages often lack clarity on how data usage is measured and billed.

Customers frequently face difficulties with unused data, particularly in prepaid packages that expire within a set time frame.

Kitany’s bill would change this by ensuring that customers only pay for the data they actually use, with no charge for unused data.

The bill also seeks to enshrine consumer rights in Kenya's internet market by tying ISP licensing and registration to compliance with the proposed billing system.

"Subsequent licensing and registration of internet service providers shall be issued under this Act," the bill reads, signaling a shift toward stronger consumer protections.

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