[kictanet] Call for opinions - CCK vs Safaricom

Fri May 7 17:57:25 EAT 2010

Amusing little factoid:

In 2004, when Celtel acquired Kencell:
'Kencell, with about 1.2 million subscribers, has recently lost market share
to rival Safaricom, a joint venture of Kenya's state-owned Telkom Kenya and
Britain's Vodafone. Safaricom's subscribers have grown to 1.8 million,
increasing its share to 60% from about 50%.

So Celtel/Zain managed to work their way down from 50% to 14% or so over the
past six years. Must have been quite a slippery playing field.

(http://www.regulateonline.org/2003/intelecon/2004/May/A-Kenya-040525.htm)

On 7 May 2010 17:38, Walubengo J <jwalu at yahoo.com> wrote:

> MM,
>
> this Kwame guy is an interesting read!. One amusing message I picked says
> that the regulator should be protecting consumers - not competitors ;-)
>
> ..and from the "streets" some analyst said that Safcom may have exploited
> its dominance position; but that was in the beginning (ref: interconnection
> tariff wars with Kencell 6-8yrs ago). Currently, it will be a tall order to
> get evidence of the yet to be defined "exploiting" dominance postion"
>
> walu.
>
> --- On *Fri, 5/7/10, muriuki mureithi <mureithi at summitstrategies.co.ke>*wrote:
>
>
> From: muriuki mureithi <mureithi at summitstrategies.co.ke>
> Subject: Re: [kictanet] [ke-internetusers] {HIJACK} Call for opinions - CCK
> vs Safaricom
> To: jwalu at yahoo.com
> Cc: "'KICTAnet ICT Policy Discussions'" <kictanet at lists.kictanet.or.ke>,
> "'ke-users'" <ke-internetusers at bdix.net>
> Date: Friday, May 7, 2010, 3:32 PM
>
>  Kui
>
> For  a local context  from an economic perspective , read the attached
>
> Regards
>
> Muriuki Mureithi
>
>
>
> *From:* kictanet-bounces+mureithi=summitstrategies.co.ke@
> lists.kictanet.or.ke [mailto:kictanet-bounces+mureithi<kictanet-bounces%2Bmureithi>
> =summitstrategies.co.ke at lists.kictanet.or.ke] *On Behalf Of *John Kariuki
> *Sent:* 07 May 2010 08:09
> *To:* mureithi at summitstrategies.co.ke
> *Cc:* KICTAnet ICT Policy Discussions; ke-users
> *Subject:* Re: [kictanet] [ke-internetusers] {HIJACK} Call for opinions -
> CCK vs Safaricom
>
>
>
> Kui,
>
> For some background information  on Competition, Dominance,etc you could
> check on the following information resources which should be available
> on-line:
>
> 1.Oftel, January 2000- The application of the Competition Act in
> Telecommunications Sector.
>
> 2. INTUG - Anti-Competitive Conduct and Competition Policy in
> Telecommunications,ITU,Geneva 22 Nov.2002
>
> 3.EU Directive 2002/19/EC 0f 7/3/2002 (Access Directive)
>
> 4. European Court of Justice in " United Brands v. Commission(1978) ECR.
> 207
>
> 5.Telecommunication Regulation Handbook(Module 5 - Competition Policy) by
> INFODEV,
>
>
> Good  Luck,
>
> John Kariuki
>
> --- On *Thu, 6/5/10, Marie-Anne Kinyanjui <mkinyanjui at nation.co.ke>*wrote:
>
>
> From: Marie-Anne Kinyanjui <mkinyanjui at nation.co.ke>
> Subject: [ke-internetusers] {HIJACK} Call for opinions - CCK vs Safaricom
> To: "McTim" <dogwallah at gmail.com>
> Cc: "KICTAnet ICT Policy Discussions" <kictanet at lists.kictanet.or.ke>,
> "ke-users" <ke-internetusers at bdix.net>
> Date: Thursday, 6 May, 2010, 8:47
>
> Is there anyone on the list with a firm grasp of the industry (and who is
> not directly involved :-) who is wiling to offer their objective views on
> this subject for publication in Business Daily?
> 400-600 words please.
>
> Thanks.
>
> Kui Kinyanjui
> Business Daily
>
> -----Original Message-----
> From: kictanet-bounces+mkinyanjui=nation.co.ke at lists.kictanet.or.ke[mailto:
> kictanet-bounces+mkinyanjui <kictanet-bounces%2Bmkinyanjui>=
> nation.co.ke at lists.kictanet.or.ke] On Behalf Of McTim
> Sent: Thursday, May 06, 2010 8:15 AM
> To: Marie-Anne Kinyanjui
> Cc: KICTAnet ICT Policy Discussions; ke-users; Angela Nganga- Mumo
> Subject: Re: [kictanet] [ke-internetusers] Re: {Disarmed} Re: CCK vs
> Safaricom?- and now Safcom vs the Rest?
>
> On Thu, May 6, 2010 at 7:35 AM, Solomon Mburu Kamau
> <solo.mburu at gmail.com> wrote:
> > This is great Angela.
> > I really need to know why the 'big boy' is suddenly crying foul.
>
>
> Let's re-examine our assumptions of who the "Big Boy" in the Kenyan
> Telecommunications market is.
>
> The GoK owns a huge minority shareholding in Telkom.Orange (and may in
> future own a majority share).  When Orange makes a profit, so do its
> owners.
>
> The GoK owns a huge minority shareholding in Safaricom.  When SafCom
> makes a profit, so do its owners.
>
> The GoK collects a tremendous amount of VAT and other taxes from the
> telecoms market players.
>
> The GoK collects a tremendous amount of license fees and frequencies
> fees from the telecoms market players.
>
> The GoK sets policy via the CCK and the Ministry.
>
> So from my POV, the GoK is the BIG BOY, it seems to me that this is
> the "elephant in the room" that no one is talking about.
>
> In any case on this specific regulation, I applaud the intent of
> creating a level playing field.  However, I see no monetary "teeth" or
> enforcement measures (read fines) in this single doc (I have yet to
> read the others).
>
> My main objection is the 25% rule.  My reading of this is that there
> MUST always be at least one dominant provider.  Let me use a poker
> game analogy to make my point.  Before the first hand is dealt, all
> players will have an equal amount of chips.  After the first hand (and
> subsequent hands) there will (most likely) be a "chip leader" and a
> "short stack".  It is not likely that there will ever be equilibrium
> in the game (or in the telecoms market).
>
> I would suggest that this clause is not helpful, at least at the 25%
> value at which the trigger is now set.
>
> No wonder Safaricom is complaining.
>
> --
> Cheers,
>
> McTim
> "A name indicates what we seek. An address indicates where it is. A
> route indicates how we get there."  Jon Postel
>
>
>
>
>
>
> >
> > On 06/05/2010, Carole K <mhariricarole at gmail.com> wrote:
> >> Thank you Angela, you are a star! The rest of us can now be informed
> about
> >> this new "unfair" regulation.
> >>
> >> CK
> >>
> >> On Wed, May 5, 2010 at 7:51 PM, Angela Nganga- Mumo <
> >> anganga at orange-tkl.co.ke> wrote:
> >>
> >>> Dear All,
> >>>
> >>> Please find a PDF copy of the regulations.
> >>>
> >>> Regards,
> >>>
> >>>  logo2
> >>>
> >>>
> >>>
> >>> Angela Ng'ang'a - Mumo
> >>>
> >>> Head of Corporate Communications
> >>>
> >>> Landline:                      + 254 20 3232011
> >>>
> >>> Orange Fixed Plus :       +254 20 2454233
> >>>
> >>> Orange Mobile:               +254 772 548 066
> >>>
> >>> Email :                         anganga at orange-tkl.co.ke
> >>>
> >>>  cid:image003.jpg at 01C9FEEE.6AAFAFA0
> >>>
> >>>
> >>> -----Original Message-----
> >>> From: ke-internetusers-bounces at bdix.net
> >>> [mailto:ke-internetusers-bounces at bdix.net] On Behalf Of
> >>> bitange at jambo.co.ke
> >>> Sent: Wednesday, May 05, 2010 7:41 PM
> >>> To: Andrea Bohnstedt
> >>> Cc: KICTAnet ICT Policy Discussions; ke-users
> >>> Subject: [ke-internetusers] Re: {Disarmed} Re: [kictanet] CCK vs
> >>> Safaricom?- and now Safcom vs the Rest?
> >>>
> >>> Will send it tomorrow.
> >>>
> >>>
> >>> Ndemo.
> >>>
> >>>
> >>> > I'd like to see the text, too. Dr Ndemo, could you or one of your
> >>> > colleagues
> >>> > email round a pdf with the regulations, please? Easier and a bit
> nicer
> >>> on
> >>> > the environment than all of us running downtown to buy paper copies.
> >>> >
> >>> > Thanks, Andrea
> >>> >
> >>> > On 4 May 2010 09:32, Walubengo J <jwalu at yahoo.com> wrote:
> >>> >
> >>> >> the drama continues,
> >>> >>
> >>> >> in a louder paid-up advert in today's press Yu, Orange and Zain
> >>> support
> >>> >> the
> >>> >> CCK regulations and dispute yesterday's Safcom's complaint.  All
> >>> these
> >>> >> without the public (or is it me?) not having copies of what they are
> >>> >> arguing
> >>> >> about!
> >>> >>
> >>> >> Someone told me the copies of this regulations are available at the
> >>> >> Government Printers at a small fee.  Halloo? Assuming I leave in
> >>> >> Lokichoggio, Should i spend two days on the road to come and pickup
> >>> some
> >>> >> hard-copy regulations that should be downloadable?
> >>> >>
> >>> >> Sergon, can you help me, where does this leave you with your
> >>> eGovernment
> >>> >> stories?
> >>> >>
> >>> >> walu.
> >>> >>
> >>> >> --- On *Mon, 5/3/10, Walubengo J <jwalu at yahoo.com>* wrote:
> >>> >>
> >>> >>
> >>> >> From: Walubengo J <jwalu at yahoo.com>
> >>> >> Subject: Re: [kictanet] CCK vs Safaricom?
> >>> >> To: jwalu at yahoo.com
> >>> >> Cc: "KICTAnet ICT Policy Discussions" <
> kictanet at lists.kictanet.or.ke>
> >>> >> Date: Monday, May 3, 2010, 10:55 AM
> >>> >>
> >>> >> Just seen a loud complaint from Safcom in today's Daily Nation.
> They
> >>> >> quoted four regulations that have been gazetted and I have searched
> >>> >> www.cck.go.ke to get a mouse on them but failed.
> >>> >>
> >>> >> Anybody with e-copies on these regulations or specific url can plse
> >>> >> update.
> >>> >>
> >>> >> walu.
> >>> >>
> >>> >>
> >>> >>
> >>> >>
> >>> >> -----Inline Attachment Follows-----
> >>> >>
> >>> >> _______________________________________________
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> >>> >>
> >>> >> This message was sent to:
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> >>> >>
> >>> >>
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> >>> > --
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> >>> > Publisher
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> >
> >
> > --
> > Solomon MbÅ©rÅ© Kamau
> > P.O. Box 19343 - 00202 Nairobi
> > Cell: (+254-0) 735 431041
> >
> > Man is a gregarious animal and enjoys agreement as cows will graze all
> > the same way to the side of a hill!
> >
> > AND
> >
> > It is better to die in dignity than in the ignomity of ambiguous
> generosity!
> >
> > http://smiley2.wordpress.com
> > http://mburu.sikika.co.ke
> >
> > _______________________________________________
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>
>
> --
> Cheers,
>
> McTim
> "A name indicates what we seek. An address indicates where it is. A
> route indicates how we get there."  Jon Postel
>
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