Wireless Local Loop in Developing Countries : Is It Too Soon for Data ?

The demand for data communications in Kenya is growing at a steady rate. Information technologies have become ubiquitous all over the world, including in developing countries like Kenya. Already, educational, health and trade networks connecting remote regions to the rest of the world are taking advantage of the Internet phenomenon. Banks, insurance and financial services firms, and other corporations need data communications for real time information gathering, automated remote services, intra-corporate voice and data communications, etc. However, like in many developing countries, communications infrastructure in Kenya is woefully underdeveloped and ill prepared to satisfy the increasing demand for data communications. Universal access to communications services for its low income, mostly rural population is a major objective of the Kenyan government. Wireless communications, particularly cellular networks are a promising solution to the infrastructure problem in the country. Wireless networks are faster and relatively cheaper to deploy than conventional wire based communications infrastructure. Unfortunately, most of the wireless networks deployed in Kenya-as in other developing countries are voice-centric. Moreover, the existing government regulation bars the private provision of all fixed wireless access service. Even the ongoing reform explicitly guarantees a public monopoly followed by a private monopoly of fixed wireless services. This thesis describes a cost model that contrasts GSM and CDMA networks, investigating current technologies as well as the projected evolution towards more advanced technologies that are capable of handling broadband data communications. The model determines that CDMA deployments instill flexibility and better evolutionary properties to the network without the burden of extra costs for the operator. The thesis concludes by recommending CDMA deployment, and that the Kenyan government de-link wireless local loop regulation from the regulation of wire based local access. The government is urged to allow the immediate private provision of fixed wireless local loop services.