[kictanet] {Disarmed} RE: {Disarmed} Re: Call for opinions - CCK vs Safaricom
Andrea Bohnstedt
andrea.bohnstedt at ratio-magazine.com
Fri May 7 18:28:13 EAT 2010
I think there are several interesting points here:
- Yes, a regulator should keep an eye on monopolistic and oligopolistic
developments. But, as Michael Joseph said, dominance should only be
penalised if abused, and in order to do so, this abuse needs to be defined
in the regulations - which has not been done, he says, despite repeat
reassurances given to him by both the Ministry of Information and the CCK
(see
http://www.ratio-magazine.com/201005052971/Kenya/Kenya-Safaricom-Willing-to-Sue-Against-New-Tariff-Regulations.html
)
- Celtel/Zain clearly didn't start out to be a 'feeble player', nor were
they a late entrant, as the figures I cited show. So is it fair to penalise
Safaricom for Celtel's inability to retain market share and capitalise on
having been in the market for more than a decade?
- Orange: France Telecom bid around USD100m more for Telkom Kenya than
their nearest competitor in the privatisation. Was that price justified?
Nobody else seems to think so, not even France Telecom anymore, since they
are now reportedly trying to get some or all of that money back.
- Yu: Econet couldn't get going for ages because their local partner
could raise their financial contribution. Was that a sensibly chosen local
partner?
Obviously it's not ideal for the market and customers to have such limited
competition, but then a) the regulation lacks a crucial element, and b) the
competition seem to have been quite adept at shooting themselves in the
foot. Is it fair to punish Safaricom for that?
Andrea
On 7 May 2010 18:04, Pius Walela <PWalela at strathmore.edu> wrote:
> 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 <kictanet-bounces%2Bpwalela>=strathmore.edu@
> 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> 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@
> 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-----
> >>> >>
> >>> >> _______________________________________________
> >>> >> kictanet mailing list
> >>> >>
> >>> kictanet at lists.kictanet.or.ke<
> http://mc/compose?to=kictanet@lists.kictan
> >>> et.or.ke>
> >>> >> http://lists.kictanet.or.ke/mailman/listinfo/kictanet
> >>> >>
> >>> >> This message was sent to:
> >>> >> jwalu at yahoo.com<http://mc/compose?to=jwalu@yahoo.com>
> >>> >> Unsubscribe or change your options at
> >>> >>
> >>> http://lists.kictanet.or.ke/mailman/options/kictanet/jwalu%40yahoo.com
> >>> >>
> >>> >>
> >>> >>
> >>> >> _______________________________________________
> >>> >> kictanet mailing list
> >>> >> kictanet at lists.kictanet.or.ke
> >>> >> http://lists.kictanet.or.ke/mailman/listinfo/kictanet
> >>> >>
> >>> >> This message was sent to: andrea.bohnstedt at ratio-magazine.com
> >>> >> Unsubscribe or change your options at
> >>> >>
> >>>
> http://lists.kictanet.or.ke/mailman/options/kictanet/andrea.bohnstedt%40
> >>> ratio-magazine.com<
> http://lists.kictanet.or.ke/mailman/options/kictanet/andrea.bohnstedt%40%0Aratio-magazine.com
> >
> >>> >>
> >>> >>
> >>> >
> >>> >
> >>> > --
> >>> > Andrea Bohnstedt
> >>> > Publisher
> >>> > +254 720 960 322
> >>> > www.ratio-magazine.com
> >>> >
> >>> > ----------------------------------------------
> >>> > This message has been scanned for viruses and
> >>> > dangerous content by Jambo MailScanner, and is
> >>> > believed to be clean.
> >>> > ---------------------------------------------
> >>> > "easy access to the world"
> >>> >
> >>> > _______________________________________________
> >>> > kictanet mailing list
> >>> > kictanet at lists.kictanet.or.ke
> >>> > http://lists.kictanet.or.ke/mailman/listinfo/kictanet
> >>> >
> >>> > This message was sent to: bitange at jambo.co.ke
> >>> > Unsubscribe or change your options at
> >>> >
> >>>
> http://lists.kictanet.or.ke/mailman/options/kictanet/bitange%40jambo.co.
> >>> ke
> >>> >
> >>>
> >>>
> >>>
> >>> ----------------------------------------------
> >>> This message has been scanned for viruses and
> >>> dangerous content by Jambo MailScanner, and is
> >>> believed to be clean.
> >>> ---------------------------------------------
> >>> "easy access to the world"
> >>>
> >>> _______________________________________________
> >>> ke-internetusers mailing list
> >>> ke-internetusers at bdix.net
> >>> http://www.bdix.net/mailman/listinfo/ke-internetusers
> >>>
> >>>
> >>>
> #####################################################################################
> >>> Scanned by MailMarshal - Marshal's comprehensive email content security
> >>> solution.
> >>> Download a free evaluation of MailMarshal at www.marshal.com
> >>>
> >>>
> #####################################################################################
> >>>
> >>> _______________________________________________
> >>> ke-internetusers mailing list
> >>> ke-internetusers at bdix.net
> >>> http://www.bdix.net/mailman/listinfo/ke-internetusers
> >>>
> >>>
> >>
> >
> >
> > --
> > 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
> >
> > _______________________________________________
> > kictanet mailing list
> > kictanet at lists.kictanet.or.ke
> > http://lists.kictanet.or.ke/mailman/listinfo/kictanet
> >
> > This message was sent to: dogwallah at gmail.com
> > Unsubscribe or change your options at
> http://lists.kictanet.or.ke/mailman/options/kictanet/dogwallah%40gmail.com
> >
>
>
>
> --
> Cheers,
>
> McTim
> "A name indicates what we seek. An address indicates where it is. A
> route indicates how we get there." Jon Postel
>
> _______________________________________________
> kictanet mailing list
> kictanet at lists.kictanet.or.ke
> http://lists.kictanet.or.ke/mailman/listinfo/kictanet
>
> This message was sent to: mkinyanjui at nation.co.ke
> Unsubscribe or change your options at
> http://lists.kictanet.or.ke/mailman/options/kictanet/mkinyanjui%40nation.co.ke
>
> DISCLAIMER: The information contained in or accompanying this e-mail is
> intended for the use of the stated recipient only. It may contain
> confidential, proprietary or legally privileged information. No
> confidentiality or privilege is waived or lost by any mistransmission. If
> you receive this message in error, please immediately delete it and all
> copies of it from your system, destroy any hard copies of it and notify the
> sender. You must not, directly or indirectly, use, disclose, distribute,
> print, or copy any part of this message if you are not the intended
> recipient.
>
> Any views or opinions presented herein are solely those of the author and
> do not necessarily represent those of the Nation Media Group.
>
> ‘To get all breaking news alerts send the word BREAK to 6667 or visit
> http://mobile.nation.co.ke to read news on your mobile phone.’
>
> _______________________________________________
> ke-internetusers mailing list
> ke-internetusers at bdix.net
> http://www.bdix.net/mailman/listinfo/ke-internetusers
>
>
>
>
> -----Inline Attachment Follows-----
>
> _______________________________________________
> kictanet mailing list
> kictanet at lists.kictanet.or.ke<http://mc/compose?to=kictanet@lists.kictanet.or.ke>
> http://lists.kictanet.or.ke/mailman/listinfo/kictanet
>
> This message was sent to: *MailScanner has detected a possible fraud
> attempt from "mc" claiming to be* *MailScanner has detected a possible
> fraud attempt from "mc" claiming to be* jwalu at yahoo.com<http://mc/compose?to=jwalu@yahoo.com>
> Unsubscribe or change your options at
> http://lists.kictanet.or.ke/mailman/options/kictanet/jwalu%40yahoo.com
>
>
>
> _______________________________________________
> kictanet mailing list
> kictanet at lists.kictanet.or.ke
> http://lists.kictanet.or.ke/mailman/listinfo/kictanet
>
> This message was sent to: andrea.bohnstedt at ratio-magazine.com
> Unsubscribe or change your options at
> http://lists.kictanet.or.ke/mailman/options/kictanet/andrea.bohnstedt%40ratio-magazine.com
>
>
>
>
> --
> Andrea Bohnstedt
> Publisher
> +254 720 960 322
> www.ratio-magazine.com
>
> ------------------------------
> Strathmore University provides all-round education in an atmosphere of
> freedom and responsibility.
> This email and any files transmitted with it are intended solely for use by
> the recipient(s) to whom it is addressed and may contain confidential
> information. If you have received this email in error please notify the
> sender immediately and permanently delete this email and/or any files
> attached to it from your computer. Please note that any views or opinions
> presented in this email are solely those of the author and do not
> necessarily represent those of Strathmore University. The University accepts
> no liability whatsoever for any loss or damages incurred, or suffered,
> resulting, or arising, from the use of this email and/or its attachments.
> The University warrants neither the integrity of the e-mail nor its freedom
> from errors, viruses, interception or any other form of interference.
> ………………………………………………………………….
> Website: www.strathmore.edu
>
--
Andrea Bohnstedt
Publisher
+254 720 960 322
www.ratio-magazine.com
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <https://lists.kictanet.or.ke/pipermail/kictanet/attachments/20100507/8fc9ed73/attachment.htm>
More information about the KICTANet
mailing list