The decision by the Ministry of Information and Communication comes after complaints that the 3G license fees were priced too high, at US$15 million. They were later reduced to $10 million, after critics said high capital expenditures stifled infrastructure growth in rural areas.

The partnership initiative calls for LTE deployment via an open-access model, where small and big operators will be able to use infrastructure without worrying about spectrum fees and high capital expenditures during rollout.

"This is the only way to salvage ISPs owned by small businesses to be able to compete and offer innovative solutions to consumers," said Bitange Ndemo, permanent secretary in the Ministry of Information and Communication.

In a newspaper ad, the government called on companies that have tier-one network operator status, are 20 percent Kenyan owned and are capable of rolling out a countrywide network within a year. The requirements were seen as a radical departure from the spectrum regulations that had previously emphasized the ability to pay, which led to some companies hoarding spectrum.

"Our understanding is that the government is seeking equitable access to spectrum irrespective of size of operator; Safaricom has always advocated for the principle of 'use it or lose it,' and open-access network is in line with this principle," said Bob Collymore, Safaricom CEO.