[kictanet] Day 10 of 10: Reconciling Stakeholder Interests

[Michael Joseph]

I think you have done a good job in summing up the objectives of the
various participants and stakeholders.  I think all the objectives can
and should be met if all parties understood each other's key objectives
and operating environments (including an understanding of the costs to
achieve them). I think we have progressed a great deal in the last 4
years with operators, the regulator and the Government beginning to
understand and appreciate each other roles.

To improve matters, more honest dialog with each other in an environment
where no one is superior to the other, where the "big whips" are packed
away, and hopefully a new framework in terms of the new ICT bill where
the roles and expectations of each stakeholder is clearly spelt out.

Sounds like Utopia but that that's my opinion.

Regards,

Michael
 
CEO
Safaricom Limited
 
-----Original Message-----
From: kictanet-bounces+mjoseph=safaricom.co.ke at kictanet.or.ke
[mailto:kictanet-bounces+mjoseph=safaricom.co.ke at kictanet.or.ke] On
Behalf Of John Walubengo
Sent: Monday, February 05, 2007 7:03 PM
To: Michael Joseph
Subject: [kictanet] Day 10 of 10: Reconciling Stakeholder Interests

<<<I must stay that the previous theme 'Projected Impact of
OFC on Stakeholders' has been quite turbulent. We did
recieve about 20 postings on this theme(during 4 calender
days) and it has been a challenge trying to sieve through
them in order to create a brief and reasonable account of
the issues, proposals and predictions. In the interest of
moving forward, I would wish to introduce the next theme
and but will provide the summary of issues in the final
report.>>>.

In general, the Operators have an obligation to maximize
profit for their shareholders by virtue of having taken a
risk and committed funds into a particular line of business
(OFC included).  The Consumer on the other hand will always
want services at the lowest cost possible (including free
services).  The Regulator is mandated - in part - to
provide a level playing field for the Operators and a
protection mechanism for Consumers. Finally, the
Government's main role would be to improve the livelihoods
of its citizens e.g. providing essential services,
conducive policy, legislative and regulatory environment
for all the stakeholders.

Indeed, the above brings out the automatic tensions that
come to play because each stakeholder wants to pursue their
interests which in most cases would be in conflict.  E.g.
Private sector would naturally follow the lowest path to
profit e.g. charge highly, concentrate in high-income zones
and recoup their investments in the shortest time possible.
 Nothing illegal with that, but if the Government
intervention is lacking in such a situtation, then certain
parts of society (citizenry) would be excluded from
accessing some of the (essential) services provided by the
Businesses.  On the other hand, forcing Business to provide
these services to low income communities, or forcing them
to under-price without compensatory schemes (incentives)
would be the quickest way to run down the business (denying
Govts Tax Revenues).
 
>From the previous theme, it was evident that the current
status and relationships, particularly between Consumers
and Operators is not too healthy. Similarly, the existing
relationship between Govt and the Regulator came into
question and various models and frameworks for improving on
these was proposed. Infact, if all things remain constant
and the OFC was delivered tomorrow, I suspect that the
tensions between the stakeholders may go a notch higher,
possibly compouded by intense Operator(with OFC access) vs
Operator(without OFC access) wars.

How then can these wars be pre-empted? What are the top
three things, each Stakeholder (Operators, Regulators,
Consumers and Govt) should do in order to provide a win-win
situation for everybody in the new OFC dispensation?  Two
days on this conclusive phase...start talking along this
theme keeping in mind some Netiquette as recommended by the
list administrator.

walu.



 
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