[kictanet] Safaricom shuts down cash for Bonga Points platform

Fri Nov 8 14:01:47 EAT 2013

+1 to the points

+1 to the prose

From: kictanet
[mailto:kictanet-bounces+eugene=synergy.co.ke at lists.kictanet.or.ke] On
Behalf Of Kamotho Njenga
Sent: Friday, November 08, 2013 12:26 PM
To: Eugene Lidede
Cc: KICTAnet ICT Policy Discussions
Subject: Re: [kictanet] Safaricom shuts down cash for Bonga Points platform

Hussein,

I do agree that the Bonga point scheme is a creation of Safaricom and they
retain the right to regulate it. But there is a whole difference between
regulation and muzzling of versatile innovations. As per the terms that
Safaricom has made public (I may not know the hidden terms, now that they
are hidden) Bonga points can be redeemed for rewards ranging from Talk-time
(Minutes), Data, SMS,  MMS bundles,  Merchandise from Safaricom Retail
Centres. They also state that you can "share and receive Bonga Points and
redeem fantastic rewards." This simply means that I can share my bonga
points with anyone as I wish. The person with whom I share my Bonga points
may also choose to share some of his/her money or any other resource with me
such that the matter is between willing parties. If Onfon Media realizes
that we need an efficient system to enable us execute our sharing with
utmost convenience, Safaricom has no business putting its nose in the
private affairs of men. In any case let Safaricom or their next of kin state
in specific terms any infringement that has been rendered on their systems
or their so called terms and conditions. 

The point here is that once I have incurred airtime expenses to accrue Bonga
points through my line they belong to ME and not to Safaricom. Just in the
same manner,  if you work for 30 days and salary becomes due, the employer
is obliged to settle your account without resorting to the idle phrases of
"terms and conditions". If Safaricom still wants to hang onto MY Bonga
points then they are at liberty to withdraw their loyalty program at any
time convenient to them. Or why would some one offer you a gift that you can
not favorably enjoy? Its like being made to pay a huge dowry a very
beautiful bride for marriage only to be told later that the terms and
condition were that you are not supposed to share a bed, even at night.

On Thu, Nov 7, 2013 at 9:56 PM, Ali Hussein <ali at hussein.me.ke> wrote:

Kamotho

Can one argue that Bonga Points is a currently created by Safaricom and
hence they have a right to sort of regulate its usage?

Ali Hussein

+254 0770 906375 / 0713 601113

"Kujikwaa si kuanguka, bali ni kwenda mbele" (To stumble is not to fall but
a sign of going forward) - Swahili Proverb

Sent from my iPad

On Nov 7, 2013, at 7:43 PM, Kamotho Njenga <kamothonjenga at gmail.com> wrote:

Thanks Hussein for bringing up this matter.

It seems Safcom is so engrossed in protectionism to an extent that the firm
has little respect for individual liberties, flexibility of choices or the
law of the land. Needless to say, once a firm has made an undertaking to
customers to award Bonga points when they spend their airtime on its
network, the firm becomes duty bound to fulfill that obligation in its
entire measure. As soon as the Bonga points have accrued to a subscriber,
they immediately cease to be mere sales talk or a discretionary bonus which
the firm can choose to honor or not. They immediately mutate into a perfect
entitlement that is legally recognizable. No reasonable firm would therefore
limit how a loyal subscriber chooses to activate such an entitlement. The
only acceptable limitations are those that may naturally arise due to lack
of technological capacity that would widen the range of options through
which customers could gain full benefit of their hard earned bonga points.

Instead of celebrating and embracing the landmark application by Onfon Media
and its associated flexibilities, Safcom shut it down. By so doing Safcom
lost an opportunity to further the scope of options within their loyalty
program. Most significantly, the firm flouted the trade law and its
conventional tenets. According to Section 21 of the Competition Act (2010)
"Agreements between undertakings, decisions by undertakings or concerted
practices by undertakings which have as their object or effect the
prevention, distortion or lessening of competition in trade in any goods or
services in Kenya, or a part of Kenya, are prohibited". 

Section 24 of the Act reads as follows:
24. Abuse of dominant position
(1) Any conduct which amounts to the abuse of a dominant position in a
market in Kenya, or a substantial part of Kenya, is prohibited.
(2) Without prejudice to the generality of subsection (1), abuse of a
dominant position includes―
(a) directly or indirectly imposing unfair purchase or selling prices or
other unfair trading conditions;
(b) limiting or restricting production, market outlets or market access,
investment, distribution, technical development or technological progress
through predatory or other practices;
(c) applying dissimilar conditions to equivalent transactions with other
trading parties;
(d) making the conclusion of contracts subject to acceptance by other
parties of supplementary conditions which by their nature or according to
commercial usage have no connection with the subject matter of the
contracts; and
(e) abuse of an intellectual property right.
(3) Any person who contravenes the provisions of this section commits an
offense and shall be liable on conviction to imprisonment for a term not
exceeding five years or to a fine not exceeding ten million shillings or to
both.

This action of disabling the phone code that was being used to trade in
Bonga Points by Onfone media by Safcom borders on intrusion into private
transactions between consenting parties. Unless Safcom can show evidence
that the inter-party dealings with Bonga points have exposed the firm to any
fraud or justifiable risk, they owe an apology to the ICT fraternity and the
entire world for attempting to stifle innovation.

Kamotho

On Thu, Nov 7, 2013 at 9:58 AM, Ali Hussein <ali at hussein.me.ke> wrote:

Safaricom
<http://www.businessdailyafrica.com/stocks/-/1322440/1394278/-/shkse6/-/inde
x.html>  has disabled a phone code that was being used to trade in Bonga
Points by a Nairobi-based IT firm.

Onfon Media developed the code, *981*400#, that it was using to buy the
loyalty points from Safaricom subscribers at Sh0.20 each and selling them
for Sh0.35, hence earning a return of 75 per cent.

Read on 

http://www.businessdailyafrica.com/Corporate-News/-/539550/2055474/-/xk1n6az
/-/index.html

There should be a healthy debate on whether doing this is the right thing to
do by Safaricom and whether it is anti-innovation...

I for one wouldn't mind some cash event for my thousands of bonga
points...:)

Ali Hussein

+254 0770 906375 / 0713 601113

"Kujikwaa si kuanguka, bali ni kwenda mbele" (To stumble is not to fall but
a sign of going forward) - Swahili Proverb

Sent from my iPad

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