Nokia Phone Sales in Kenya Fall Falling Imposition of Sales Tax:

Nokia says that its sales in East Africa fell by 20 percent after the Kenyan government imposed sales tax on mobile phones. The tax was introduced last September, which added 20 percent to the cost of mobile phones.

The ICT industry had been zero-rated for VAT since 2009, but now pays a 16% VAT on all imports.

Nokia's East Africa general manager, Bruce Howes confirmed that the new tax had caused a decline in sales for the manufacturer. He added that, as was widely expected, there had been a rise in smuggling of "grey phones" into the country as a result.

"We are working with the respective bodies to try to revert the decision on mobile device taxing because over 50 per cent of market is now on grey market."

Last year, when the tax was proposed, Nokia's EMEA Vice President, Jussi Hinkkanen warned that it would disproportionately hurt the poor who still lacked a mobile phone and would pay a tax that previous middle-class buyers had not been subjected to.

Measures to reform telecoms industry in Nigeria:

The Nigerian government will introduce a new right of way policy designed to enhance operations within the country’s ICT industry writes Abuja’s Leadership publication.

In a joint initiative involving the country’s Ministries of Works and that of the Environment, a new right of way policy has been developed to address difficulties experienced by operators in constructing telecom infrastructure.This was announced by the Minister of Communications Technology, Mrs Omobola Johnson, at a National Telecom Subscribers Summit held recently in Lagos according to the report.

The policy will also reportedly balance out the charges applied to operators as part of an overall effort by the government to create an “enabling environment” and “ensure quality of service.”

The Leadership report also stated the government’s intention to protect communications infrastructure from vandalism.

 Minister Johnson is quoted as saying, “”The recent development where some of the critical telecom facilities have been attacked and destroyed is disastrous for the industry. Government will put in place the necessary legislation that will classify communications facilities as critical infrastructure.”

Whilst authorities have announced the new measures and efforts to ensure nationwide application, industry representatives have expressed concern over continued vandalism and the need to protect infrastructure from further damage.