[kictanet] Safaricom's Super Profits

[Edith Adera]

Barrack and Ngethe,



I think otherwise.



The super-profits seem to arise NOT from "real productivity gains" or "reward from entrepreneurship" but from monopolizing access to the market (e.g. mpesa has tied people to Safaricom; consumer behavior of not shifting despite number portability or  poor quality of service as Barrack points out or high price of service or the availability of other money transfer options - etc etc etc). Here is where the "PECULIAR" behavior of Kenyans needs to be unearthed - We need to "peel off the mask" if I can borrow those words.



So this has created some ARTIFICIAL "exclusivity" of Safaricom products creating monopolistic or oligopolistic tendencies in the Kenyan telecom market.



So you cannot entirely blame Safaricom for this state of affairs, we need to get to the "kernel" of the issue to understanding why the Kenyan market seems to be so unique and consumer prices are just not coming down!! (maybe Kenya is not alone?)



I would really like to hear from Research ICT Africa who have been carrying out consistent research studies (for the last 10 years or more) comparatively examining over 22 telecom markets in Africa (including Kenya) under the title "Telecommunication Sector Performance Reviews" (http://www.researchictafrica.net/publications.php) - our own Prof. Waema, Muriuki Mureithi, Dr Adeya have been leading the Kenyan studies. I have also copied Christorph Stork and Alison Gilwald, why Kenya is different?



Would also be great to hear from Matano (CCK)?



Edith



-----Original Message-----
From: ngethe.kariuki2007 at yahoo.co.uk [mailto:ngethe.kariuki2007 at yahoo.co.uk]
Sent: May 18, 2013 11:48 AM
To: Edith Adera; kictanet
Cc: KICTAnet - Media Editors Forum; KICTAnet ICT Policy Discussions
Subject: Re: [kictanet] Safaricom's Super Profits



Edith,Listers,

Interesting questions raised.The results are not entirely unexpected and that is why,inter alia, CCK and Competition Authority were established.



John Kariuki

Sent from my BlackBerry(r)



-----Original Message-----

From: Edith Adera <eadera at idrc.ca<mailto:eadera at idrc.ca>>

Sender: "kictanet"

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Date: Sat, 18 May 2013 08:38:42

To: <ngethe.kariuki2007 at yahoo.co.uk<mailto:ngethe.kariuki2007 at yahoo.co.uk>>

Cc: KICTAnet - Media Editors Forum<mediaeditors at lists.kictanet.or.ke<mailto:mediaeditors at lists.kictanet.or.ke>>; KICTAnet ICT Policy Discussions<kictanet at lists.kictanet.or.ke<mailto:kictanet at lists.kictanet.or.ke>>

Subject: [kictanet] Safaricom's Super Profits



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