[kictanet] {Disarmed} RE: {Disarmed} Re: Call for opinions - CCK vs Safaricom

Pius Walela PWalela at strathmore.edu
Fri May 7 18:04:04 EAT 2010 

Recent  developments  in the mobile telephony  sector are  of concern   . I  opine  that for a true  capitalist society to manifest the market  should be subject  to  forces  of demand and  supply to create conducive conditions   for  the  market to  thrive  and in extension to ensure its longevity. However  Oligopolistic  and monopolistic  tendencies  in the  market  ought  to be  constrained  to  cushion feeble  players and  potential  new entrants from eventual  or outright  failure, as  such  regulation  is  essential  however these regulations  have  to  be  moderated.


From: kictanet-bounces+pwalela=strathmore.edu at lists.kictanet.or.ke [mailto:kictanet-bounces+pwalela=strathmore.edu at lists.kictanet.or.ke] On Behalf Of Andrea Bohnstedt
Sent: Friday, May 07, 2010 5:57 PM
To: Pius Walela
Cc: KICTAnet ICT Policy Discussions
Subject: {Disarmed} Re: [kictanet] Call for opinions - CCK vs Safaricom

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<mailto: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<mailto:mureithi at summitstrategies.co.ke>> wrote:

From: muriuki mureithi <mureithi at summitstrategies.co.ke<mailto:mureithi at summitstrategies.co.ke>>
Subject: Re: [kictanet] [ke-internetusers] {HIJACK} Call for opinions - CCK vs Safaricom
To: jwalu at yahoo.com<mailto:jwalu at yahoo.com>
Cc: "'KICTAnet ICT Policy Discussions'" <kictanet at lists.kictanet.or.ke<mailto:kictanet at lists.kictanet.or.ke>>, "'ke-users'" <ke-internetusers at bdix.net<mailto: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<http://summitstrategies.co.ke>@lists.kictanet.or.ke<http://lists.kictanet.or.ke> [mailto:kictanet-bounces+mureithi<mailto:kictanet-bounces%2Bmureithi>=summitstrategies.co.ke<http://summitstrategies.co.ke>@lists.kictanet.or.ke<http://lists.kictanet.or.ke>] On Behalf Of John Kariuki
Sent: 07 May 2010 08:09
To: mureithi at summitstrategies.co.ke<mailto: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<http://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<mailto:mkinyanjui at nation.co.ke>> wrote:

From: Marie-Anne Kinyanjui <mkinyanjui at nation.co.ke<mailto:mkinyanjui at nation.co.ke>>
Subject: [ke-internetusers] {HIJACK} Call for opinions - CCK vs Safaricom
To: "McTim" <dogwallah at gmail.com<mailto:dogwallah at gmail.com>>
Cc: "KICTAnet ICT Policy Discussions" <kictanet at lists.kictanet.or.ke<mailto:kictanet at lists.kictanet.or.ke>>, "ke-users" <ke-internetusers at bdix.net<mailto: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<mailto: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<http://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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>
>
> --
> Solomon Mbũrũ 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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