[kictanet] Safaricom shuts down cash for Bonga Points platform

Fri Nov 8 14:34:35 EAT 2013

ME THINKS THIS WILL MAKE A RETURN AS ANOTHER SAFARICOM PRODUCT, AND THE
COMPANY IS SOFTENING ONFON FOR A 'TAKEOVER'

On Fri, Nov 8, 2013 at 7:01 PM, Eugene Lidede (Synergy) <
eugene at synergy.co.ke> wrote:

> +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/-/index.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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> 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.
>

-- 

*Warm Regards,  PETER WAKABA                  AFRICA BUSINESS EDITOR, CCTV
AFRICA             Every morning in Africa, a gazelle wakes up, It knows it
must run faster than the fastest lion or it will be killed. Every morning a
lion wakes up, it knows it must outrun the slowest gazelle or it will
starve to death. It doesn't matter whether you are a gazelle or a lion.
When the sun comes up, you better start running.- In "The World is Flat" by
Thomas L. Friedman.*
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