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

Wed Feb 16 12:08:52 EAT 2011

MM/McTim - Sorry I disagree. Interconnection costs are just one
component of off-net costs that are INDEPENDENT of other costs of
the call. If I was an operator I do not understand why anyone
would be interested in my cost structure or why I should give it
out.

BTW I prefer a situation where even interconnection costs are
phased out. Let it be like the banking model where the banks do
not add the cost of clearing inter-bank cheques. The
cross-traffic cancels itself out. That is, why should I charge
you for clearing my 10 cheques and you charge me for clearing my
10 cheques?

Waudo

On Wed, 16 Feb 2011 10:23 +0300, "muriuki mureithi"
<mureithi at summitstrategies.co.ke> wrote:

Hi Waudo

Refereeing interconnection rates fundamentally  assumes a cost
structure  otherwise the regulator would have no basis of setting
and referring the interconnection rates

cheers

Muriuki Mureithi

Those who bring sunshine to the lives of others cannot keep it
from themselves. Sir james m barrie

From: waudo siganga [mailto:emailsignet at mailcan.com]
Sent: 16 February 2011 09:46
To: muriuki mureithi
Cc: 'KICTAnet ICT Policy Discussions'
Subject: Re: [kictanet] Price Control in the Telecom Market in
Kenya?

Hi MM - I think the role of CCK should end with refereeing
inter-connection rates. Otherwise I do not think there is
anything like "the price structure of a call". Operators have
different business models, different competencies, different
efficiencies, etc.

Waudo

On Wed, 16 Feb 2011 09:33 +0300, "muriuki mureithi"
<mureithi at summitstrategies.co.ke> wrote:

Edith you are not alone!

But  unfortunately  this is  like a political debate--- the
debate will be better informed  if CCK which has the mandate can
publish     the price structure of a call  taking  into account
our situation and  the market dynamics .   Certainly an operator
who is innovative and  brings down the  ‘cost’ to  for example
below Ksh 0.50  should be encouraged and protected to price that
way , those  however  charging below ‘cost’ should be shunned
because , this business tactic  is not overboard and it only
takes a while when we have to pay dearly.    CCK can  and should
help an informed  debate and confirm if the ‘cost’ figures
published by the media were  accurate.

cheers

Muriuki Mureithi

Those who bring sunshine to the lives of others cannot keep it
from themselves. Sir james m barrie

From:
kictanet-bounces+mureithi=summitstrategies.co.ke at lists.kictanet.o
r.ke
[mailto:kictanet-bounces+mureithi=summitstrategies.co.ke at lists.ki
ctanet.or.ke] On Behalf Of Edith Adera
Sent: 15 February 2011 19:40
To: mureithi at summitstrategies.co.ke
Cc: KICTAnet ICT Policy Discussions
Subject: [kictanet] Price Control in the Telecom Market in Kenya?

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

[1]eadera at idrc.or.ke | [2]www.idrc.ca | [3]www.crdi.ca

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References

1. mailto:eadera at idrc.or.ke
2. http://www.idrc.ca/
3. http://www.crdi.ca/
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