[Kictanet] Operators alarmed by slow ICT reforms

Tue Jul 12 13:23:02 EAT 2005

Hi

thanks Brian and Odhiambo for the comments....it brings more light into 
what might be taking place..

another question is in regard to whatever final conclusions came into 
being after the Mombasa policy conference/workshop on the issue of 
regulation ..and the independence thereof...

is there some specific text to this regard? - I would imagine if such 
text exists and is applied/implemented - then it might guarantee and 
ensure a consistent and predictable operations of the sector..

and where there are shortcomings then Kictanet and the like would know 
where to target for policy change..

regards,

Njenga

That is

Odhiambo Washington wrote:
> When the changes that made Waweru and Kirui swap places were made, I
> thought it was the worst thing that could happen not only to the ICT
> industry, but even to Waweru and Kirui themselves as individuals!
> 
> For the industry: We were already aware of the level of Waweru's
>                   resistance to embracing the changes that were being
>                   implemented by CCK. His going to CCK then gave him
>                   the mandate to dismantle all the gains that were
>                   already made! CCK under Kirui was on the right path.
> 
> For Kirui: He was now going to be made to get a "taste of his own
>            medicine" (The good changes he was in the process of
>            implementing, and which Waweru was resisting) by being
>            told to implement the very things Waweru was adamant to.
> 
> While change is inevitable, the decision that led to Waweru and Kirui
> swapping places made me sick, but well, it was supposed to send a
> clear signal to the telecommunications operators on what was in
> store for the sector. It was so in black and white I am left wondering
> why it did not strike them at that time.
> 
> I'll say that one thing for sure, the current government is not at
> all keen on liberalising the telecommunications sector. Is anyone still
> hearing of the sale of Telkom?
> 
> I will not attempt to blame Hon. Tuju and his advisers for irrational
> actions, especially when they moved Kirui to TELKOM and Waweru to CCK.
> It was ethically a bad move, but why care anyway (for him)?
> His was the implementation of "government policy".
> 
> I may be irrational in my reasoning here, but I did not hear (read)
> anywhere that these issues were ever raised during the Mombasa
> consultative conference.
> 
> 
> 
> * Brian Longwe <cto at nbi.ispkenya.com> [20050712 11:58]: wrote:
> 
>>In a nutshell the industry is rather concerned about the  
>>retrogressive stance that the new Director-General of CCK (Eng.  
>>Waweru) has taken. He seems to be seeking to reverse the trend  
>>towards full liberalisation and competition that the Commission had  
>>firmly embraced.
>>
>>It is very troubling to see a continuation of the bad habits that  
>>were developed while at Telkom Kenya.
>>
>>Brian
>>
>>On 12 Jul 2005, at 11:29, Emmanuel Njenga wrote:
>>
>>
>>>Hello all,
>>>
>>>Can people shed more light into this.
>>>
>>>http://www.eastandard.net/mags/fs/news.php?articleid=24957
>>>
>>>Regards,
>>>
>>>Njenga
>>>
>>>---------------
>>>
>>>Operators alarmed by slow ICT reforms
>>>
>>>By Alari Alare
>>>
>>>Reforms progress in the fast growing telecommunications sub-sector  
>>>could suffer a major setback if plans by the Communication  
>>>Commission of Kenya (CCK) to outlaw VoIP (Voice over Internet  
>>>Protocol) are implemented.
>>>
>>>Last week industry sources indicated that CCK Director-General John  
>>>Waweru was planning to restrict the provision of the popular  
>>>Internet telephone service that has drastically lowered  
>>>international call rates to one provider – a stance he has  
>>>maintained since his days at Telkom Kenya.
>>>
>>>Waweru’s position, which stakeholders see as a reversal of the  
>>>progress the telecom sector had made towards full liberalisation,  
>>>sparked fresh fears that the regulator was determined to take the  
>>>industry back to the days when State-owned Telkom Kenya enjoyed  
>>>exclusivity in the provision of Internet services.
>>>
>>>Sources at CCK indicated that Waweru had put on hold the issuance  
>>>of licenses for VoIP providers pending a review of the rules  
>>>governing the sector.
>>>
>>>The Telecommunication Service Provider Association of Kenya  
>>>(Tespok) expressed concern over the delay in release of the  
>>>guidelines and questioned CCK’s commitment to full liberalisation  
>>>of the VoIP market.
>>>
>>>The association’s chairman Joseph Mucheru said members were  
>>>concerned about on-goings at CCK. He accused the regulator of  
>>>stifling the industry’s growth through frequent change of goal posts.
>>>
>>>CCK, however, denied that it was backtracking on the reforms. Mr  
>>>Mutua Muthusi, CCK’s Assistant Director in charge of public  
>>>relations and communications said new guidelines will soon be  
>>>introduced to facilitate business in the segment.
>>>
>>>"In about a month’s time, we are going to have the guidelines. We  
>>>have taken into consideration responses from various stakeholders  
>>>so as to come up with something that will not police the operators  
>>>but guide them in their operations," he said.
>>>
>>>Muthusi said it was the CCK’s intention to seek industry consensus  
>>>before implementing any licensing structures that could hurt  
>>>licensed operators. "CCK does not believe in prescribing  
>>>regulations on each and every activity of the industry. Rather it  
>>>would be more appropriate for the players to develop self- 
>>>regulating mechanisms in certain areas."
>>>
>>>He said delay in release of the guidelines had been caused by CCK’s  
>>>commitment to involving service providers in the formulation of  
>>>rules within which they operate.
>>>
>>>Since Waweru swapped places with Sammy Kirui, the then CCK Director- 
>>>General, not much has taken place in the sector apart from last  
>>>month’s consultative meeting with industry players.
>>>
>>>CCK’s changed strategy also threatens the legality of existing VoIP  
>>>operators.
>>>
>>>The process of legalising VoIP started off last year through  
>>>radical market reforms that dismantled Telkom Kenya’s monopoly of  
>>>the Internet service provision.
>>>
>>>In December last year, CCK had declared VoIP legal and asked  
>>>Internet Service Providers (ISP’s) to surrender their licenses for  
>>>modification to allow them carry multimedia traffic. Licenses were  
>>>then issued to Internet Backbone and Gateway Operators (IBGO)  
>>>allowing them to carry VoIP in their networks.
>>>
>>>Though IBGO operators were not allowed to sell the service directly  
>>>to the end users, ISPs were given a go ahead to do so.
>>>
>>>Before he was sent on compulsory leave and later deployed to Telkom  
>>>Kenya, Kirui had also promised to release VoIP guidelines to  
>>>regulate the market.
>>>
>>>Last month, Waweru held a consultative meeting with industry  
>>>players and promised to issue the VoIP guidelines during the  
>>>National ICT Conference that was held in Mombasa later that month.  
>>>That did not materialize.
>>>
>>>The failure by Waweru to honour his promise left the operators, who  
>>>have invested heavily in the business, at the crossroads with many  
>>>of them wondering whether the telecommunications regulator was  
>>>still committed to pursuing reforms that had been implemented in  
>>>recent months.
>>>
>>>Tespok also read mischief in the move by CCK to allow IBGOs to vend  
>>>VoIP service, while denying retailers access to it.
>>>
>>>"Backbone operators (IBGOs) are like wholesalers in this process,  
>>>ISPs are the retailers who should sell the service to end users. As  
>>>it is now the retailers cannot offer the service as CCK is holding  
>>>onto their licenses," said Mucheru.
>>>
>>>Until the CCK issues the amended licenses, the law bars ISPs from  
>>>carrying VoIP traffic.
>>>
>>>Mucheru said delay in release of the licences once again raised the  
>>>question as to who should distribute the service to end-users?"
>>>
>>>What has incensed Tespok most, however, is CCK’s reluctance to fast  
>>>track reforms in the sector. The association views restriction of  
>>>ISPs from carrying VoIP in their networks as a deliberate policy  
>>>shift that is aimed at creating a lucrative black market.
>>>
>>>"This is a service that the Kenyans badly need to reduce the cost  
>>>of doing business in the country. Restricting the retail element  
>>>therefore opens up vending through the black-market," said Mucheru.
>>>
>>>While at Telkom Kenya, Waweru had disconnected ISP Kenya Limited’s  
>>>high capacity line that the firm used to offer VoIP services.
>>>
>>>Kirui, the managing director of Telkom Kenya, who was then at the  
>>>helm of CCK had ordered Telkom Kenya to restore the line but the  
>>>latter refused to abide by the directive.
>>>
>>>Muthusi said the CCK wanted telecommunications operators to settle  
>>>inter-connection agreement commercially without waiting for the  
>>>regulator’s intervention.
>>>
>>>"This should be handled through business negotiations in the best  
>>>interests of the operators and consumers," he said. The regulator,  
>>>said Muthusi, would only make a ruling if the parties fail to reach  
>>>a consensus.
>>>
>>>The near standoff between the industry and the regulator comes  
>>>barely nine months after the CCK released a new licensing structure  
>>>to guide the market in move to liberalise the telecommunications  
>>>sector.
>>>
>>>
>>>_______________________________________________
>>>kictanet mailing list
>>>kictanet at kictanet.or.ke
>>>http://kictanet.or.ke/mailman/listinfo/kictanet
>>>
>>>
>>
>>
>>_______________________________________________
>>kictanet mailing list
>>kictanet at kictanet.or.ke
>>http://kictanet.or.ke/mailman/listinfo/kictanet
> 
> 
> -Wash
> 
> http://www.netmeister.org/news/learn2quote.html
> 
> --
> +======================================================================+
>     |\      _,,,---,,_     | Odhiambo Washington    <wash at wananchi.com>
> Zzz /,`.-'`'    -.  ;-;;,_ | Wananchi Online Ltd.   www.wananchi.com
>    |,4-  ) )-,_. ,\ (  `'-'| Tel: +254 20 313985-9  +254 20 313922
>   '---''(_/--'  `-'\_)     | GSM: +254 722 743223   +254 733 744121
> +======================================================================+
> 	"For I perceive that behind this seemingly unrelated sequence
> of events, there lurks a singular, sinister attitude of mind."
> 
> 	"Whose?"
> 
> 	"MINE! HA-HA!"
> 
> _______________________________________________
> kictanet mailing list
> kictanet at kictanet.or.ke
> http://kictanet.or.ke/mailman/listinfo/kictanet
> 
> 