Safaricom on Thursday received a licence to roll out third generation (3G) mobile systems and services.
This will enable subscribers access to high speed data communications, which include faster access to internet, video conferencing and video phone, among others.
Safaricom, which has consistently posted huge profits in recent years, is running ahead of the competition. However, competition is expected to intensify with the anticipated entry of other players, among them the third mobile operator, Econet Wireless, which will roll out early next year.
Last Wednesday, Safaricom CEO, Michael Joseph, said the company's profits will come under pressure for the next five years as more players emerge. The roll out is hence, among the firm's strategies to beat off competition.
Last year, Safaricom posted Sh17.2 billion, the highest in the East African region.
Communications Commission of Kenya, director general, John Waweru said 3G enabled services will facilitate e-applications in medical, education and business.
He said although the 3G systems were used more in developed countries, they would assist developing countries to 'leapflog and close technology gaps with the developed countries.'
He added that CCK had requested Safaricom and Celtel to undertake trials on the third generation service in Nairobi and Mombasa, and the services have proved to be of quality.
Mr Waweru said Safaricom should introduce innovative services the like introduced in Singapore last week, where parents were enabled to monitor their children, residence and streets.
"It is my hope that Safaricom will roll out many innovative services in 3G whose uptake would be targeted across the board to meet the needs of all consumers of mobile telephone services," he said.
The licence cost $25 million (Sh1.7 billion). Mr Joseph said the firm will use an equal amount to build the infrastructure for the 3G services.
Mr Waweru said the licence fee will be used to expand Information Communication Technology (ICT)
