[kictanet] Orange and yu exit: Market Failure or Creative Destruction (Capitalism Style)?

[Dennis Kioko]

The German regulator has given a condition to Telefonica to cede spectrum
in the acquisition of a rival
http://www.mobileworldlive.com/telefonica-e-plus-deal-faces-spectrum-pressure?utm_campaign=MWL_20140402&utm_medium=email&utm_source=Eloqua&elq=1f8ef6b8133945659084038af45360d9&elqCampaignId=1485

On Wednesday, 26 March 2014, Philip Adar <philip.adar at gmail.com> wrote:

> +1, yes "innovative" will be the solution...
>
>
> On Wed, Mar 26, 2014 at 10:14 AM, Dennis Kioko <dmbuvi at gmail.com<javascript:_e(%7B%7D,'cvml','dmbuvi at gmail.com');>
> > wrote:
>
>> A similar problem arose in the US, but the regulator refused to let AT&T
>> (the leading operator) buy off T-Mobile(the fourth operator).
>>
>> What happened is that T-Mobile got a bit more creative in its offers (
>> http://www.nytimes.com/2014/02/27/technology/personaltech/t-mobile-turns-an-industry-on-its-ear-in-a-fight-for-its-life.html?_r=0)
>> .
>>
>> I also think that Kenya is suffering from the same, especially seeing
>> that we import the C level suite of most telcos to bring in "experienced
>> people."
>>
>> Perhaps, telcos need more of innovative people and less of experienced
>> people - there isn't that much to lose anyway, or is there?
>>
>>
>> On Wednesday, 26 March 2014, Ali Hussein <ali at hussein.me.ke> wrote:
>>
>> Listers
>>
>> Jaindi Kisero's article on the imminent departure (demise?) of two telcos
>> in Kenya make compelling reading.
>>
>>
>> http://www.nation.co.ke/oped/Opinion/mobile-phone-firm-pullout-market-failure/-/440808/2257472/-/2crh39/-/index.html
>>
>> The article basically explores the possibility that market failure is
>> what we are experiencing in Kenya.
>>
>> According to Wikipedia Market Failure is a concept within economic
>> theory describing when the allocation of goods and services by a free
>> market <http://en.wikipedia.org/wiki/Free_market> is not efficient<http://en.wikipedia.org/wiki/Economic_efficiency>.
>> That is, there exists another conceivable outcome where a market
>> participant may be made better-off without making someone else worse-off.
>> (The outcome is not Pareto optimal<http://en.wikipedia.org/wiki/Pareto_efficiency>.)
>> Market failures can be viewed as scenarios where individuals' pursuit of
>> pure self-interest leads to results that are not efficient - that can be
>> improved upon from the societal point-of-view.[1]<http://en.wikipedia.org/wiki/Market_failure#cite_note-1>
>> [2] <http://en.wikipedia.org/wiki/Market_failure#cite_note-krugman-2> The
>> first known use of the term by economists was in 1958,[3]<http://en.wikipedia.org/wiki/Market_failure#cite_note-Bator-3>
>>  but the concept has been traced back to the Victorian philosopher Henry
>> Sidgwick <http://en.wikipedia.org/wiki/Henry_Sidgwick>.[4]<http://en.wikipedia.org/wiki/Market_failure#cite_note-Medema-4>
>>
>> Market failures are often associated with time-inconsistent preferences<http://en.wikipedia.org/w/index.php?title=Time-inconsistent_preferences&action=edit&redlink=1>
>> , <http://en.wikipedia.org/wiki/Market_failure#cite_note-5>
>>
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>
>
>
> --
> Regards
>
> Philip Adar
>


-- 
with Regards:

blog.denniskioko.com <http://www.denniskioko.com/>
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