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

Sat Feb 19 01:04:58 EAT 2011

Dr. Siganga,

With regard to the Banking Sector, i am reliably informed that the banks
jointly own a clearing house for the cheques administered by Kenya Bankers
Association, i stand to be corrected on this, in so far as
the telecoms sector is concerned number portability still sound like rocket
science since players don't want to cooperate. Going forward it might
be worthwhile to examine whether the current practices in the industry will
facilitate growth of the industry, it is worth noting that coverage in areas
such as Archers post and some parts of North Eastern is still wanting, as
Bob says lets make this debate more factual for the sake of the future
generations, If it is true that price wars have affected other economies,
what can we learn for such instances? there is not point burying our heads
in the sand, we should aim at accessibility and affordability to all and not
a select few..

On Wed, Feb 16, 2011 at 12:28 PM, Edith Adera <eadera at idrc.or.ke> wrote:

> Bwana Ndemo,
>
> While I agree with most of your analysis (not all), could you please be
> SPECIFIC on what your "conservative stand" is?
>
> That would allow appropriate response.
>
> In the meantime, we need to keep in mind what drives innovation - the
> insatiable desire to survive (NOT TO DIE) rather than "protection"!!
>
> Lets support innovation rather than protection!
>
> Edith
>
> PS: who should be the "objective" arbitatrator given Government's stake in
> Safaricom? or was it all sold?
>
> _______________
> 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
> ________________________________________
> From: bitange at jambo.co.ke [bitange at jambo.co.ke]
> Sent: 16 February 2011 11:58
> To: Edith Adera
> Cc: bitange at jambo.co.ke; KICTAnet ICT Policy Discussions
> Subject: Re: [kictanet] Price Control in the Telecom Market in Kenya?
>
> Edith,
> Prices will eventually come down even below one shilling especially when
> Subscriber base begins to exceed 100%.  It is selfish for us now to
> celebrate lower tarrifs when coverage is at 40%.  We need to improve
> coverage to at least 90%.  There are pockets even in Nairobi where none of
> the operators has covered.  The quality of service is still wanting as new
> technologies that put pressure on capex keep on emerging.  We are not
> seeing aggresive rollout of 3G which all of you agree that it is critical
> to our last mile broadband.
>
> For many years, Kenya's development has largely been minimalist,
> depressing and expensive.  In the past few years, we started moving from
> such experiments and made serious interventions in the Telcoms and Road
> sectors.  Serious investors are now considering Kenya as a good investment
> destination.  Other consideration include return on investment not only
> for foreign investors but local investors too.  Margins therefore become a
> critical factor.
>
> There is no where in the world where lower margins have kept pace with
> technology.  Any analyst will tell you that at the pace which prices are
> coming down in Kenya, one operator is bound to die.  Unfortunately, most
> of the celebrating crowd will train their spears on government asking what
> it was doing.  Whichever way the government gets the flak.  That is why I
> make no apologies for taking a conservative stand.
>
>
> Regards
>
>
> Ndemo.
>
>
>
>
>
> > 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<mailto:eadera at idrc.or.ke> |
> > www.idrc.ca<http://www.idrc.ca/> | www.crdi.ca<http://www.crdi.ca/>
> > [
> https://email.idrc.or.ke/owa/attachment.ashx?id=RgAAAAANayfd3%2b2VQYZo%2flcEcy23BwBGVjMm%2bu2wT5L%2b09sJnJi7AAACCuteAABGVjMm%2bu2wT5L%2b09sJnJi7AB4xzB0cAAAJ&attcnt=1&attid0=EAAMf1dr1NMFTaXab9x9F4f4
> ]
> >
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