[kictanet] Price Control in the Telecom Market in Kenya?

[Bob Collymore]

To help to inform this debate I'd like to state a few facts.

1 Safaricom did NOT 'take this issue to parliament".  Rather we were invited by the Parliamentary Committee to discuss a range of issues including the price wars.  Other operators were given a similar opportunity a while ago.

2 Safaricom did NOT request retail price control.  We simply pointed out that where predatory price wars were threatening development of the industry, the Governments of Sri Lanka, DRC and most recently Uganda ended up stepping in with price floors.  Those who refuse to learn from the lessons of history are inevitably condemned to die by it.....

3 We attempted to debunk the myth of high Kenyan call charges stating the fact that Kenya has the lowest calling charges across Africa.

4 We explained the simple economics of the company that for 8 years has re-invested it's profits in developing the industry to a level that gives 85% of the Kenyan population access to mobile telephony at a price below the rest of Africa and most of Europe and that has brought empowering technologies and innovations such as M-Pesa to ordinary Kenyans.  For some reason the consequences of this investment by the company is not recognised as empowering but rather as 'enjoying market power'

I am happy to have the debate but please let's do so from a position informed by facts.  

Sent from my iPad

On 15 Feb 2011, at 19:44, "Edith Adera" <eadera at idrc.or.ke> wrote:

> Listers,
>  
> The news I heard today made me wanna shadder!
>  
> A player with market power asking for price controls in the telecom market? Are we progressing or retrogressing?
>  
> Telecom Economics dictates otherwise and this must NOT happen in a free and competitive market! Our recent discussions on broadband access just goes to confirm that we are not there yet. We have not yet reached the most remote and isolated corners of this country....control MUST not be an option!
>  
> The Kenyan consumer continues to be constrained by availability, accessibility and affordability to fully realize the socio-economic benefits of telecoms.
>  
> As a voice for the common consumer.....among a million other voices......price control is NOT an option!
>  
> Edith
>  
> ________________                                   
> Edith Ofwona Adera
> Senior Program Specialist
> ICT4D Program and Climate Change & Water Program
> International Development Research Centre | Centre de recherches pour le développement international
> Regional Office for Eastern and Southern Africa
> Tel: +254202713160 | Fax/Téléc: +254202711063 | Skype: edithadera
> eadera at idrc.or.ke | www.idrc.ca | www.crdi.ca
> 
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