[kictanet] KENIC Board Statement on dot.KE

Fri Jan 31 18:05:34 EAT 2014

Dear Mr Hussein,

Thank you sir for the insights. Clearly, the answer to your question can be found in Wikipedia’s definition you have generously availed. What you didn’t address yourself to, however, is the quality of service levels, pricing, among other aspects in the case of a single-seller of an essential service. They are certainly uncompetitive and anti-consumer. Ask yourself, for instance, must KENIC’s customers in this day and age pay through a registrar who gobbles up some commission adding to the consumers’ woes? Can those security fears, if real, be addressed in a different way? Why can’t people pay online for instance: http://www.101domain.com/domain_registration_joburg.htm 

Fair trade and competition policy may not necessarily be universal but it is about making principles of fairness and decency mean something in the marketplace especially for the goods/services we buy. Essentially, it offers a way for all of us to identify products that meet our values – principally so we can make choices that have a positive impact to the world around us. 

Retaining KENIC as a single-seller where multiple-sellers can compete favourably and profitably won’t be in the consumer/KENIC’s own interest. Just imagine, for a second, that a company like Safaricom, Airtel or AccessKenya ISP has a Yahoo/Gmail address. Or put this way, which Kenyan company or individual wouldn’t die for a Dot Ke address for his or her business if they can afford? These domains uniquely define “Kenyan-ness” and a sense of patriotism – why must they be made expensive and a preserve of Ali Hussein (sorry and others) who can afford a “me.ke”? And how can they be made cheaper would be the salient question – open up the space to other sellers. 

Sound macro-economists will tell you, for free, that you don’t protect KENIC market share by locking competitors out especially knowing that they have been there for a while. They possibly are only exploiting less than 5% of their market potential. Imagine if all Kenya “emailers” could dump the insecure Yahoo/Gmails for a Dot Ke … that would be big business for KENIC and her competitors! As you rightly put it, the captains at KENIC must know the market thus : “3. In today's hyper competitive world there are few monopolies left.”

Kind regards,

Japheth Ogutu

www.cofek.co.ke 

From: Ali Hussein [mailto:ali at hussein.me.ke] 
Sent: Friday, January 31, 2014 5:28 PM
To: Consumers Federation of Kenya (COFEK)
Cc: KICTAnet ICT Policy Discussions
Subject: [***SPAM*** Score/Req: 07.40/5.0] Re: [kictanet] KENIC Board Statement on dot.KE

Japheth

How do you define a monopoly? In my opinion KeNIC is far from a monopoly. 

Let me just refresh ourselves here.

According to Wikipedia:-

 <http://en.wikipedia.org/wiki/Monopoly#cite_note-2> [Monopolies are characterized by a lack of economic  <http://en.wikipedia.org/wiki/Competition> competition to produce the  <http://en.wikipedia.org/wiki/Good_(economics)> good or  <http://en.wikipedia.org/wiki/Service_(economics)> service and a lack of viable  <http://en.wikipedia.org/wiki/Substitute_good> substitute goods. <http://en.wikipedia.org/wiki/Monopoly#cite_note-3> [3] The verb "monopolize" refers to the process by which a company gains the ability to raise prices or exclude competitors. In economics, a monopoly is a single seller. In law, a monopoly is a business entity that has significant market power, that is, the power to charge high prices. <http://en.wikipedia.org/wiki/Monopoly#cite_note-Orbach.26Campbell-4> [4] Although monopolies may be big businesses, size is not a characteristic of a monopoly. A small business may still have the power to raise prices in a small industry (or market). <http://en.wikipedia.org/wiki/Monopoly#cite_note-Orbach.26Campbell-4> [4]

So to put this in context. 

1. If I'm unable to buy a .ke does it mean that I will not be able to have an email address, access the Internet, have a domain name? 

2. Kenya Power is a monopoly that basically doesn't have a substitute here in Kenya.

3. In today's hyper competitive world there are few monopolies left.

As the consumer watchdog it would auger well for COFEK to deeply understand the regulatory and competitive framework that informs the domain space in general and the ccTLD space in particular.

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 31, 2014, at 1:37 PM, "Consumers Federation of Kenya \(COFEK\)" <hotline at cofek.co.ke> wrote:

Dear Sir/Madam,

Thanks for sharing. On what basis does the Chairman of KENIC claim that "KENIC is the best suited entity to continue operating and managing ...."? Who was this consultant and how was he or she sourced? Was he or she paid and if yes by whom? When KENIC says it is the "best" who are the lesser ones that were being compared to it? KENIC is a monopoly under Cap 504, Competition Act and must be declared as such. It is also single-sourced in an opaque manner. KENIC should opened to a regulated competition. CAK and Government must get out of KENIC fast and swift in the consumer interest. 

Kind regards,

Japheth

Japheth Ogutu

Program Officer

Consumers Federation of Kenya (COFEK)

Meky Place, Block F-45

Ngong Road/Ring Rd Kilimani Junction

P.O Box 28053-00200, City Square, NAIROBI, Kenya 

Tel. 254-20-2615496, 2300859 Fax. 254-20-3861719; Cell phones: 0715555550, 0770700007

E-mail: hotline at cofek.co.ke

Website: www.cofek.co.ke

Facebook: "Consumers Federation of Kenya (Cofek)" 

Twitter: @ConsumersKenya YouTube: "ConsumersKenya"

13th December 2012 -  President Kibaki assents to the Consumer Protection Act, 2012 Read it here: http://www.cofek.co.ke/Consumers%20Protection%20Act%202012.pdf 

-----Original Message-----
From: kictanet [mailto:kictanet-bounces+hotline=cofek.co.ke at lists.kictanet.or.ke] On Behalf Of Walubengo J
Sent: Friday, January 31, 2014 12:23 PM
To: The Consumers Federation of Kenya (Cofek)
Cc: KICTAnet ICT Policy Discussions
Subject: [kictanet] KENIC Board Statement on dot.KE

Find attached. 

Ofcourse I am just being a messenger here, not necessarily the owner of the message since I do not have the privilege to sit on the KENIC board :-)

walu.

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