[kictanet] [Skunkworks] Are we letting the PS get away with this too?

Tue Jan 18 13:09:25 EAT 2011

@barrack I have not torn into CCK at any point in my discourse, just
expressed my exasperation at the inaction. But just tell me so i
understand,

1: Is the tax rate that GOK has on safaricom higher than the one levied on
other similarly strained (resources, support...e.t.c) providers?
2: Is it proper (in the natural justice realm) to assuage these providers by
giving them a "level playing field" tilted in the favour of safaricom?
3: Is whether or not the pricing model is sustainable a decision that GOK is
responsible for? or is it CCK or is it the Ksh 2M++ a month CEO and
management team of safaricom.

The Way I see it, GOK is subverting a Strategy (Airtel has clearly declared
that the pricing wars to them are a strategy to raise market share) to
retain Safaricom's dominance, hence revenue (through shareholding). Just how
is this good / fair / balanced action by the relevant authorities?

lastly, whether the taxman is meeting the targets or not should be an issue
of performance and (if my memory serves me right) a constitutionally
required participatory action. Tying the implementation of the constitution
to the price wars in the Telko is to me drawing the line way way too far.
Its politics, not economics.

On Tue, Jan 18, 2011 at 12:55 PM, Barrack Otieno
<otieno.barrack at gmail.com>wrote:

> Well it is within the  democratic right of the PS to comment on the issue
> at least he gave an opinion which i tend to agree with but need some more
> education on the pricing of calls, i also think CCK has attained a certain
> level of independence contrary to what our good friend Brainiac says, (i
> stand to be corrected on this)  we need input from economists on the long
> term effects of this price changes to the industry considering the fact that
> we have not yet attained Universal Access, there are some parts like Archers
> Post in Eastern  that dont have very good coverage, i have an uncanny
> feeling they might not be sustainable in the long run, i would love to hear
> the opinion of technocrats on this lists, either way the government needs to
> set a level playing field to guarantee stability of businesses.
>
> Best Regards
>
>
> On Tue, Jan 18, 2011 at 12:43 PM, Solomon Mburu Kamau <
> solo.mburu at gmail.com> wrote:
>
>> The PS should have said the government will get less tax and not
>> derailment of the constitution implementation.
>>
>> I think this is just a way of making Kenyans guilty of swtiching to a
>> lower tarrif, lest the 'constitution will not be implemented'.
>>
>> Seriously, how many taxes do we pay directly and or indirectly to the
>> government?
>>
>> Talk about a selfish government.
>>
>>
>> On 18/01/2011, Joram Mwinamo <joram.mwinamo at gmail.com> wrote:
>> > low pricing = less tax collected
>> >
>> > If im paying 3 bob per minute and the govt takes 10%(just as an example)
>> > thats 30cts per minute for govt
>> > if its 10% of 1 bob thats 10 cts per minute
>> >
>> > When everyone if forced to take prices down to 1 bob.....then less
>> revenue
>> > overrall
>> >
>> > On Tue, Jan 18, 2011 at 12:29 PM,
>> > <ashok+skunkworks at parliaments.info<ashok%2Bskunkworks at parliaments.info>
>> <ashok%2Bskunkworks at parliaments.info<ashok%252Bskunkworks at parliaments.info>
>> >
>> >> wrote:
>> >
>> >> On Tue, Jan 18, 2011 at 12:11 PM, Joram Mwinamo <
>> joram.mwinamo at gmail.com>
>> >> wrote:
>> >> > This is more an economic discussion than it is a digital one
>> >> > What he means is that the price war will deny the govt of revenues
>> >> through
>> >> > Tax which is needed heavily to finance the new constitutions
>> >> implementation
>> >> >
>> >>
>> >> How will a mobile price war deny government of tax revenues ?
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>>
>> AND
>>
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>
>
>
> --
> Barrack O. Otieno
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