[kictanet] Kibaki, Raila meddling stalls CCK actions

Wed Aug 29 17:54:46 EAT 2012

On 29 August 2012 16:13, Walubengo J <jwalu at yahoo.com> wrote:

> @Edith,
>
> Ave been working on some academic model whose preliminary data seems to
> support Mr. Presidents interventions  i.e. the Telco  market must project
> significant Returns for the investor to continue playing.  Competition is
> good but cut-throat competition leaves the industry (Operators, Govt and
> Users) worse off than before.  Think about it - would you like FREE
> internet that is so congested that you cannot send an email? Or would you
> rather pay something extra for the reasonable use of the medium?
>

I beg to differ with you Walu. Safaricom has been making insane profits for
the past ten years. INSANE profits at the expense of a consumer. You cannot
make 10Billion profit in such a small market then start whining on how the
market is tough and prices are depressed, and competition is
high. Safaricom ended its 2012 financial year with a NET profit to *Sh12.63
billion* . If that is not OBSCENELY SIGNIFICANT profit, what is?

I read that the government doesn't want to loose the significant DIVIDENTS
it gets from Safaricom that's why it's intervening through CCK.

For Telkom Kenya, they have to be more innovative and receptive to change
if they are to survive. Actually, the government should dispose the
remaining 49% stake and stop wasting taxpayers money
in bailing the organisation every fiscal year.

>
> Going back to Mr. Prime ministers interventions  - of protecting
> frequencies allegedly irregularly acquired by others.  My model has not
> factored in frequencies yet - But I think CCK may have a bigger impact on
> the market by recovering frequencies held up by the Military (there's a
> band that ITU declared for public use but previous reports indicated our
> Military seems to hoard this band - not sure if this has changed).
>
> As to whether the President's and/or the Prime Ministers interventions are
> legal? It is debatable. However, I think the current legislative framework
> - Kenya Comm Amendment Act 2009 - provides for the government in power to
> direct the Regulator - BUT through Policy frameworks - rather than through
> specific or selected directives arising from which CEO had dinner with the
> President/Prime minister the previous night.
>
> walu.
>
>
>
> --- On *Wed, 8/29/12, Edith Adera <eadera at idrc.or.ke>* wrote:
>
>
> From: Edith Adera <eadera at idrc.or.ke>
> Subject: Re: [kictanet] Kibaki, Raila meddling stalls CCK actions
> To: jwalu at yahoo.com
> Cc: "KICTAnet ICT Policy Discussions" <kictanet at lists.kictanet.or.ke>
> Date: Wednesday, August 29, 2012, 1:06 PM
>
>
>  Any reactions from Bwana Ndemo, who seems to have received one of the
> letters?
>
> Is this also the reason why Airtel changed their rates to subscribers from
> 1 shilling (permanent!! - the word has earned new meaning) back to ksh 3
> per minute? No one answered this question when I asked a while back.
> Airtel, why the change?
>
> As stakeholders, should we accept "regulatory capture" in this industry?
>
> Edith
>  ------------------------------
> *From:* kictanet [kictanet-bounces+eadera=idrc.or.ke at lists.kictanet.or.ke]
> On Behalf Of Grace Githaiga [ggithaiga at hotmail.com]
> *Sent:* Wednesday, August 29, 2012 12:36 AM
> *To:* Edith Adera
> *Cc:* KICTAnet ICT Policy Discussions
> *Subject:* [kictanet] Kibaki, Raila meddling stalls CCK actions
>
>    IN SUMMARY
>
>    - The President’s intervention, which amounts to political meddling in
>    the work of an independent state organ, has for the second time in as many
>    years stopped the industry regulator, the Communications Commission of
>    Kenya (CCK), from lowering the Mobile Termination Rate (MTR).
>    - MTR is the price that operators pay each other for calls terminating
>    in their networks from outside and ultimately determines call costs.
>    - Mr Kibaki, who has been acting on behalf of Safaricom and Telkom
>    Kenya, issued the directive in a letter to Information permanent secretary
>    Bitange Ndemo, stating that there should be no change in the MTR until a
>    fresh study of the same is carried out.
>    - Prime Minister Raila Odinga, jumped into the CCK’s regulatory
>    mandate with a similar directive on behalf of yet another big business –
>    Royal Media Services.
>    - Mr Odinga wrote to the CCK director-general asking him to withdraw
>    the notice he had published of intention to revoke frequencies that the
>    media house is accused of acquiring irregularly.
>
>
>
> http://www.businessdailyafrica.com/Kibaki+Raila+meddling+stalls+CCK+actions+/-/539546/1489216/-/bay1qg/-/index.html
>
> -----Inline Attachment Follows-----
>
> _______________________________________________
> kictanet mailing list
> kictanet at lists.kictanet.or.ke<http://mc/[email protected]>
> https://lists.kictanet.or.ke/mailman/listinfo/kictanet
>
> Unsubscribe or change your options at
> https://lists.kictanet.or.ke/mailman/options/kictanet/jwalu%40yahoo.com
>
>
> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
> for people and institutions interested and involved in ICT policy and
> regulation. The network aims to act as a catalyst for reform in the ICT
> sector in support of the national aim of ICT enabled growth and development.
>
> KICTANetiquette : Adhere to the same standards of acceptable behaviors
> online that you follow in real life: respect people's times and bandwidth,
> share knowledge, don't flame or abuse or personalize, respect privacy, do
> not spam, do not market your wares or qualifications.
>
>
> _______________________________________________
> kictanet mailing list
> kictanet at lists.kictanet.or.ke
> https://lists.kictanet.or.ke/mailman/listinfo/kictanet
>
> Unsubscribe or change your options at
> https://lists.kictanet.or.ke/mailman/options/kictanet/kivuva%40transworldafrica.com
>
> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
> for people and institutions interested and involved in ICT policy and
> regulation. The network aims to act as a catalyst for reform in the ICT
> sector in support of the national aim of ICT enabled growth and development.
>
> KICTANetiquette : Adhere to the same standards of acceptable behaviors
> online that you follow in real life: respect people's times and bandwidth,
> share knowledge, don't flame or abuse or personalize, respect privacy, do
> not spam, do not market your wares or qualifications.
>

-- 
______________________
Mwendwa Kivuva
For
Business Development
Transworld Computer Channels
Cel: 0722402248
twitter.com/lordmwesh
www.transworldAfrica.com  | Fluent in computing
kenya.or.ke | The Kenya we know
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <https://lists.kictanet.or.ke/pipermail/kictanet/attachments/20120829/fb996f94/attachment.htm>