[kictanet] CCK to renew Safaricom's licence

Tue Jul 30 16:59:54 EAT 2013

True Edith. "He who pays the piper calls the tune"

On 30/07/2013, Edith Adera <eadera at idrc.ca> wrote:
> Walu,
>
> Well presented!
>
> We should be worried, VERY worried, when the “referee” begins to fear the
> “player”!!
>
> Poor QoS is acknowledged, but NO tangible action!
>
> I feel that CCK is “skirting around the problem”!!
>
> Edith
>
> From: Walubengo J [mailto:jwalu at yahoo.com]
> Sent: July 30, 2013 2:37 PM
> To: Edith Adera
> Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions
> Subject: Re: [kictanet] CCK to renew Safaricom's licence
>
> @Edith,
>
> I am not a regulator and neither do I intend to shield  Wambua/CCK from your
> question.  But I can tell you one way to deal with poor service is to
> provide competition which I believe CCK has done very well.
>
> (Un?)Fortunately through sheer hard work (or otherwise?) Safcom has managed
> to get 78% market share in the data market. So they are for all purposes and
> intent a monopoly in that space.   Monopolies by nature tend to be dictate
> alot of things - including how to make more money within the shortest time
> and using the lowest effort (squeezed resources). Capitalist call this
> efficiency, but Users reflect it as poor quality :-)
>
> Monopolies as you know are a hard nut to crack (ask Microsoft, Google, AT&T
> and others).  With all due respect, I highly doubt that CCK can crack
> Safaricom in its own..it might have to explore legal avenues available in
> the Competition laws.  Sponsor one Mutoro, Omutatah et. al. to fundamentally
> break up the giant that Safaricom has become.
>
> And I say this with a heavy heart since I am both a (not-so-big) Safaricom
> shareholder and 12year old subscriber/customer and I have no clue what  or
> how such a break-up would play out. Choices have consequences....
>
> walu.
>
> ________________________________
> From: Edith Adera <eadera at idrc.ca<mailto:eadera at idrc.ca>>
> To: jwalu at yahoo.com<mailto:jwalu at yahoo.com>
> Cc: Consumer and Public Affairs <CPA at cck.go.ke<mailto:CPA at cck.go.ke>>;
> KICTAnet ICT Policy Discussions
> <kictanet at lists.kictanet.or.ke<mailto:kictanet at lists.kictanet.or.ke>>
> Sent: Tuesday, July 30, 2013 11:28 AM
> Subject: Re: [kictanet] CCK to renew Safaricom's licence
>
> Wambua,
>
> This is a very “generic” response!
>
> Am I right in reading from your email that NOTHING much is done for poor QoS
> until licenses are up for renewal? What SPECIFIC actions have been taken
> to-date? When should we expect better QoS before June 2014?
>
> OR are we dealing with a case of “regulatory capture”?
>
> Edith
>
> From: Wambua, Christopher
> [mailto:Wambua at cck.go.ke]<mailto:[mailto:Wambua at cck.go.ke]>
> Sent: July 29, 2013 5:39 PM
> To: Edith Adera
> Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions
> Subject: RE: [kictanet] CCK to renew Safaricom's licence
> Importance: High
>
> Edith/Listers
>
> One of the responsibilities of CCK is to protect the interests of consumers,
> including against poor quality of service. To this end, CCK independently
> monitors the QoS on annual basis to determine whether licensees meet the
> minimum set parameters or standards.  Each year, we publish the performance
> of the four mobile operators in respect to QoS to empower consumers make
> informed choices in the market.  We also levy penalties on non-compliant
> licensees (i.e. those that do not meet the set standards).  The penalties
> stipulated in the Kenya Information and Communications Act, CAP 411A of
> Kshs500,000, are however too low and do not serve as an adequate deterrent.
> To address this, the penalties have been enhanced in the proposed Kenya
> Information and Communications (Amendment) Bill. CCK is also enhancing its
> monitoring  capabilities to be able to process and publish the performance
> results more frequently for public information and as a way of encouraging
> service providers to provide quality services.
>
> The monitoring results also assist licensees to identify areas of
> non-compliance for purposes of improvement.  Arising from our concern over
> QoS performance, CCK has requested non-compliant licensees to submit action
> plans on how they intend to improve on QoS.
>
> Let me also add that QoS is a major consideration in the renewal of
> licences for the mobile operators and other service providers.  The renewal
> of the Safaricom licence is due in June 2014.  CCK is looking forward to
> enhancing the licence conditions in respect to QoS to make ensure that
> consumers get value for their money.
>
> Best regards,
>
> Christopher Wambua
> Manager – Communications
> Consumer and Public Affairs Department
> Communications Commission of Kenya
> P.O. Box 14448 NAIROBI 00800
> Tel: +254 20 4242209
> info at cck.go.ke<mailto:info at cck.go.ke>
> www.cck.go.ke<http://www.cck.go.ke/>
>
>
>
> From: Edith Adera [mailto:eadera at idrc.ca]<mailto:[mailto:eadera at idrc.ca]>
> Sent: Monday, July 29, 2013 4:43 PM
> To: Wambua, Christopher
> Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions
> Subject: RE: [kictanet] CCK to renew Safaricom's licence
>
> Dear Wambua,
>
> Thanks for bringing this issue to our attention. Actually, 2 weeks ago an
> email I had composed for the list got deleted before I could deliver it…then
> I got swamped!
>
> The email was about the “poor quality of service”  from Safaricom – too many
> dropped calls, uncompleted calls, undelivered sms”, hanging sms” etc.  and
> asking the BIG QUESTION: “WHAT IS CCK DOING ABOUT THIS UNACCEPTABLY LOW
> QUALITY OF SERVICE?”
>
> I see you have suggested that renewal of license is subject to “ …..meeting
> set minimum quality of service standards by June 2014.”
>
> Why by June 2014?
>
> We want good service NOW!
>
> Can CCK address this now and get back to us telling us what will be done now
> and NOT June 2014?
>
> Concerned Edith
>
>
> From: kictanet
> [mailto:kictanet-bounces+eadera=idrc.ca at lists.kictanet.or.ke]<mailto:[mailto:kictanet-bounces+eadera=idrc.ca at lists.kictanet.or.ke]>
> On Behalf Of Wambua, Christopher
> Sent: July 26, 2013 4:48 PM
> To: Edith Adera
> Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions
> Subject: [kictanet] CCK to renew Safaricom's licence
> Importance: High
>
> Listers,
>
> CCK to renew Safaricom’s licence
>
> Kenya’s largest mobile operator – Safaricom – will pay Kshs2.36billion
> (US$27million) for renewal of its operating licence for a further term of 10
> years.
>
> CCK today announced that the renewal of Safaricom’s licence would depend on
> the operator paying the renewal fee upfront and meeting the set minimum
> quality of service standards by June 2014. Safaricom’s initial licence term
> of 15 years is set to expire on 30th June 2014 but has a provision for a
> possible renewal for a further term of 10 years.
>
> Addressing the media at the CCK offices, CCK Director General Mr. Francis
> Wangusi said the renewed Safaricom licence would come with a set of new
> licence terms and conditions negotiated between the regulator and the mobile
> operator.
>
> The licence renewal fee of US$27 million is based on the bid price offered
> for the third GSM mobile licence by the latest entrant to the mobile
> telecoms market in Kenya -Econet Wireless Kenya Ltd (now Essar Telecom Kenya
> Ltd).
>
> The Director General said that whereas Safaricom has significantly
> contributed to the economy, developed innovative products and services and
> met most its licence obligations, the mobile operator needs to up its game
> in regard to meeting the set quality of service standards.
>
> ‘‘We have  considered the fact that whereas Safaricom has met most of its
> licence obligations, its continued failure to meet the set Quality of
> Service standards remains a concern that needs to be addressed,’’ said Mr.
> Wangusi.
>
> Mr. Wangusi further said the three other mobile operators would pay the same
> amount for renewal of their licences for a further term of 10 year to ensure
> parity and a level playing ground for all service providers in the sector.
>
> At the sametime, the Director General said the spectrum assigned to the four
> mobile operators will be subjected to an auction after the expiry of the
> 10-year renewal term. ,
> The full statement of the Director General is available on the CCK website
> at
> http://www.cck.go.ke/news/speeches/2013/Press_statement__Safaricom_licence.pdf
>
> Wambua
>
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-- 
______________________
Mwendwa Kivuva
twitter.com/lordmwesh
kenya.or.ke | The Kenya we know