[kictanet] Matiang’i rules out Safaricom reprieve from licence terms

Ali Hussein ali at hussein.me.ke
Thu Jan 9 21:44:24 EAT 2014


Now that is some teeth!! Way to go CCK..

Ali Hussein

+254 0770 906375 / 0713 601113

"I fear the day technology will surpass human interaction. The world will have a generation of idiots".  ~ Albert Einstein

Sent from my iPad

> On Jan 9, 2014, at 8:30 PM, "Wambua, Christopher" <Wambua at cck.go.ke> wrote:
> 
> The penalties for poor QoS have been enhanced from KES 500,000 to 0.2% of the gross  annual turnover of the non-performing network. 
> 
> The new penalties shall come into effect next year. The enhanced penalties should serve as a deterrent.
> 
> Wambua 
> Sent from my BlackBerry 10 smartphone.
> 
> From: James Kariuki
> Sent: Thursday, 9 January 2014 20:14 PM
> To: Wambua, Christopher
> Cc: KICTAnet ICT Policy Discussions
> Subject: Re: [kictanet] Matiang’i rules out Safaricom reprieve from licence terms
> 
> Using your analogy at @Walu, CCK then needs to act and behave like the late Michuki when he was Transport Minister.
> 
> --James
> 
> 
>> On 9 January 2014 16:37, Walubengo J <jwalu at yahoo.com> wrote:
>> True that @Kimani,
>> 
>> More Revenue should lead to subsequent investments in expanding the Network Capacity - ideally(theoretically).  But reality is different.
>> 
>> Assume you bought a 14-seater Matatu (bus) and the passenger demand is so high that you always carry above the specs -i.e around 20 passengers in the 14-seater.  How long will it take it you upgrade to a 28-seater matatu? 1yr, 2yr, 5yrs, when govt tells you to?
>> 
>> The correct answer is as soon as you start losing the "seated" customers.  As long as the seated (existing) and the joining customers are NOT leaving the matatu (network), you will not bother to expand it. Why should you when you are making twice the money expected to be made from the 14-seater?
>> 
>> Strictly speaking, in a free market economy even the government cannot force you to expand your matatu (Network). Only the customers can...and if the customers are not (leaving), find out why and fix that. My hypothesis is that the market is broken. Fix the market and the quality issues will fix themselves.
>> 
>> walu.
>> 
>> --------------------------------------------
>> On Thu, 1/9/14, Antony Kimani <kimanianthoni at gmail.com> wrote:
>> 
>>  Subject: Re: [kictanet] Matiang’i rules out Safaricom reprieve from licence terms
>>  To: jwalu at yahoo.com
>>  Cc: "KICTAnet ICT Policy Discussions" <kictanet at lists.kictanet.or.ke>
>>  Date: Thursday, January 9, 2014, 12:46 PM
>> 
>>  @Walubengo
>>  IMHO the more the customers the higher the revenue
>>  suffericon should have invested more on infrastucture for
>>  quality improvement as the customer numbers grew.
>> 
>>  BR
>> 
>>  On Thu, Jan 9, 2014 at
>>  12:37 PM, Adam Nelson <adam at varud.com>
>>  wrote:
>> 
>>  I don't see any methodology section in that
>>  report.  Is this evaluation using standard methods?  If
>>  so, what are the actual methods used by CCK to generate the
>>  numbers?
>> 
>> 
>>  --Kili.io -
>>  OpenStack for Africa: kili.ioMusings: twitter.com/varud
>> 
>>  About
>>  Adam: www.linkedin.com/in/adamcnelson
>> 
>> 
>> 
>> 
>>  On Thu, Jan 9, 2014 at
>>  12:31 PM, Walubengo J <jwalu at yahoo.com>
>>  wrote:
>> 
>> 
>>  Adam,
>> 
>> 
>> 
>>  I did send the report link in an earlier post. It was  @
>> 
>> 
>> 
>>  http://www.cck.go.ke/consumers/other_info/downloads/REPORT_ON_THE_QUALITY_OF_SERVICE_2012-2013.pdf
>> 
>> 
>> 
>> 
>> 
>>  The only problem I have is that CCK might be looking at
>>  Quality in isolation. In an ideal situation, the increased
>>  No. of subscribers would put pressure on the Safaricom
>>  Network such that its Quality would deteriorate (which has
>>  happened) and subsequently force subscribers to ran away to
>>  better quality networks (which has NOT happened). If
>>  Safaricom customers had moved to other networks, this would
>>  force Safaricom to naturally improve its Quality (read:
>>  invest in Network Capacity Expansion in tandem with
>>  increased Subscriber numbers).
>> 
>> 
>> 
>> 
>> 
>>  Reading the riot act to Safaricom is not sufficient to
>>  warrant Quality improvement. The departure of its customers
>>  would.
>> 
>> 
>> 
>>  So if I was the DG of CCK, I would be working on the WHY are
>>  the suffering -sorry - Safaricom ustomers like me NOT
>>  moving? Sort that out, and the quality equation will be
>>  resolved.
>> 
>> 
>> 
>>  walu.
>> 
>> 
>> 
>>  --------------------------------------------
>> 
>>  On Thu, 1/9/14, Adam Nelson <adam at varud.com>
>>  wrote:
>> 
>> 
>> 
>>   Subject: Re: [kictanet] Matiang’i rules out Safaricom
>>  reprieve from licence terms
>> 
>>   To: jwalu at yahoo.com
>> 
>>   Cc: "KICTAnet ICT Policy Discussions" <kictanet at lists.kictanet.or.ke>
>> 
>>   Date: Thursday, January 9, 2014, 11:36 AM
>> 
>> 
>> 
>>   Where is the report?
>> 
>>   All I see is a press release with no
>> 
>>   report:
>> 
>>   http://cck.go.ke/news/2013/Mobile_operators_fail.html
>> 
>> 
>> 
>> 
>> 
>>   And a broken link for the 'Publications &
>> 
>>   Statistics' section:
>> 
>>   http://cck.go.ke/resc/
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>>   --Kili.io - OpenStack for Africa:
>> 
>>   kili.ioMusings: twitter.com/varud
>> 
>>   About
>> 
>>   Adam: www.linkedin.com/in/adamcnelson
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>>   On Thu, Jan 9, 2014 at
>> 
>>   11:26 AM, James Mbugua <jgmbugua at gmail.com>
>> 
>>   wrote:
>> 
>> 
>> 
>>   Adam,
>> 
>>   It might help if you read the CCK report itself
>> 
>>   on their website.
>> 
>>   James
>> 
>> 
>> 
>> 
>> 
>>   On Thu, Jan 9, 2014 at
>> 
>>   11:23 AM, Adam Nelson <adam at varud.com>
>> 
>>   wrote:
>> 
>> 
>> 
>> 
>> 
>>   I guess the US regulators would step in about
>> 
>>   voice quality if it was bad in certain areas that the
>>  market
>> 
>>   wouldn't want to serve.  The theory would be that
>>  the
>> 
>>   spectrum is a public asset licensed to the vendor in
>>  order
>> 
>>   to further the public good - and that part of the license
>> 
>>   terms are to satisfy the public good.
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>>   This is why the US landline regulators force
>> 
>>   telephone companies to service very rural areas at the
>>  same
>> 
>>   price as more economically efficient urban
>> 
>>   areas.
>> 
>>   If CCK was saying that all of the operators
>> 
>>   needed to put masts in Turkana as part of a public good,
>> 
>>   that would be one thing.  But just saying that voice
>> 
>>   quality is low in general and not backing it up with how
>> 
>>   that compares to international standards (they surely
>>  exist
>> 
>>   and the article discusses that Safaricom passed such
>> 
>>   international tests) seems like a pretty weak argument to
>> 
>>   me.  
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>>   Of course, the writing in the Business Daily
>> 
>>   article is so muddled that it's hard to tell
>>  what's
>> 
>>   actually going on.
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>>   --Kili.io - OpenStack for Africa:
>>  kili.ioMusings: twitter.com/varud
>> 
>> 
>> 
>> 
>> 
>>   About
>> 
>>   Adam: www.linkedin.com/in/adamcnelson
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>>   On Thu,
>> 
>>   Jan 9, 2014 at 11:14 AM, James Mbugua <jgmbugua at gmail.com>
>> 
>>   wrote:
>> 
>> 
>> 
>> 
>> 
>>   Adam,
>> 
>>   Is it standard in other countries or is the QoS a
>> 
>>   Kenyan/CCK feature? Then it might be a
>> 
>>   shakedown.
>> 
>>   James
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>>   On Thu, Jan 9, 2014 at 11:11 AM, Adam Nelson <adam at varud.com>
>> 
>>   wrote:
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>>   This seems like a shakedown to me.  
>> 
>>   Everybody I know gets Safaricom if they can
>> 
>>   afford it (otherwise Airtel).  The market can handle
>> 
>>   quality problems and the CCK can help by educating the
>>  local
>> 
>>   markets (i.e. local radio spots discussing carrier
>>  quality
>> 
>>   in each market).
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>>   --Kili.io -
>> 
>>   OpenStack for Africa: kili.ioMusings: twitter.com/varud
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>>   About
>> 
>>   Adam: www.linkedin.com/in/adamcnelson
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>>   On Thu, Jan 9,
>> 
>>   2014 at 11:07 AM, Walubengo J <jwalu at yahoo.com>
>> 
>>   wrote:
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>>   ICT secretary Fred Matiang’i has vowed to tie the
>>  renewal
>> 
>>   of Safaricom’s licence to the voice quality checks that
>> 
>>   show the mobile phone operator is non-compliant.
>> 
>> 
>> 
>>   Dr Matiang’i said the government and the Communications
>> 
>>   Commission of Kenya (CCK) will not negotiate on the voice
>> 
>>   quality standards.
>> 
>> 
>> 
>>   ....
>> 
>> 
>> 
>>   “I don’t understand why an operator would like to
>> 
>>   negotiate a licence condition. There are only two options
>> 
>>   here, either comply or step out of the business,” Dr
>> 
>>   Matiang’i told the Business Daily on the sidelines of
>>  the
>> 
>>   launch of the electronic filling of returns by insurers
>>  to
>> 
>>   the Insurance Regulatory Authority.
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>>   Check more @ http://www.businessdailyafrica.com/Corporate-News/Safaricom-licence-terms/-/539550/2139198/-/uvyr23/-/index.html
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>> 
>>   ---
>> 
>> 
>> 
>>   my comment? - Safaricom "ina weneyewe"
>> 
>>    translation for the international viewers
>>  "Safaricom
>> 
>>   has its owners" :-)
>> 
>> 
>> 
>> 
>> 
>> 
>> 
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> 
> 
> -- 
> James Kariuki Njenga/@karitz
> (C)+27.72.037.3284
> E: jkariuki at gmail.com
> Skype: carice2
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