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

[muriuki mureithi]

Hi Edith 

Thanks for the data  which  could give some empirical data on which to make
informed decisions  on the cost of mobile services 

 

In doing so we need to interrogate the tool used for the comparison and see
how far it is valid in our situation  and therefore the validity of the
comparison 

The tool by OECD developed in 2006  assumes  common or nearly common
features of the operators i.e. 

-          a case in point is coverage . In Kenya , this is not the case,
Safaricom has the largest coverage and therefore a   price comparison must
take this into account  which the tool cannot . given that low end users as
intended by the tool wish to travel across the country  ,   an improved tool
would capture signal  per km coverage  -  Safaricom would come out cheapest
. That tool used by the policy makers would encourage  even more investment
to expand coverage 

-          Services wrapped around a  number - the OECD tool assumes voice
and limited data  services - Kenya is in the global map because of the
services it has put around the cellular number  . thus different operators
have put different services and which gives a low end user an advantage .
again some of the operators have different spread of MMT coverage and
services around it and one got global recognition and award ( Safaricom was
awarded this week in Barcelona),  support for low end  user  e.g. Okoa
jahazi,  data offering e.g. 3G , support for the number - access to customer
care ,  and psychological image - branding around it 

 

 This is why many Kenyans have more than one sim card.  While one card may
give a cost advantage on voice in and around urban areas, the same SIM card
does not give  MMT or data and hence  the need to have another card or even
another phone. The cost is eventually is high for the low end user

 

We can put Kenya in the map again by developing our own tool that helps
Kenya towards vision 2030. OECD tool is not appropriate for a developing
country  like Kenya . it fails to capture  why Kenya is on the world map and
where  we have failed , why we failed 

 

 

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.or.ke
[mailto:kictanet-bounces+mureithi=summitstrategies.co.ke at lists.kictanet.or.k
e] On Behalf Of Edith Adera
Sent: 18 February 2011 07:39
To: mureithi at summitstrategies.co.ke
Cc: KICTAnet ICT Policy Discussions
Subject: [kictanet] FW: Price Control in the Telecom Market in Kenya?

 

Some statistics!

 

 



 

 

 

 

EBITDA is Earning before interest tax depreciation and amortization and is
an accounting measure that allows comparison across companies since it
neutralizes tax and cost of capital effects as well as depreciation rules.

 

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