[kictanet] Yu acquisition proposal to regulator

[Dennis Kioko]

I thought Kenya was a liberal country, what's with everyone wanting to
place regulatory hurdles on Yu's exit.

Biggest issue is Safaricom's acquisition of spectrum belonging to YU and
thus putting more spectrum under them - which they badly need to improve
network quality in urban areas which suffer from congestion.

Industry analysts have long predicted consolidation of MNOs in African
countries to 3 or 4 per country (see an interview I did with Coleago in
December
http://www.cio.co.ke/news/main-stories/coleago's-chris-gives-insights-on-lte-network-sharing,-spectrum,-future-and-regulation-of-africa-telecoms#)

The buy out paves the way for licensing of MVNOs, which have an advantage
of sharing existing capacity and unutilised resources rather than building
out whole networks again.
On 4 Mar 2014 05:32, "Ali Hussein" <ali at hussein.me.ke> wrote:

> Listers
>
> Yu has been bleeding red ink since it launched. It was inevitable. No
> public review will change that. The Network Effect is clearly at play here
> with Safaricom. None of the other players are profitable. Orange is being
> kept afloat by GoK and the mother company in France. Airtel considers Kenya
> a loss leader because of its 'strategic' nature in Africa and hence cannot
> abandon it. Not sure how long that will continue.
>
> The interesting bit here is that Orange may eventually buy Safaricom
> because of some actions in far off cities that we have no control
> over...that for me is the real risk..
>
> 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 Mar 3, 2014, at 11:20 PM, ICT Researcher <ict.researcher at yahoo.com>
> wrote:
>
> For starters, the company's assets true worth need to be independently
> established and its outstanding liabilities audited. Mere reported "spend a
> combined $100 million" inflated with 'sweatheart deal' exit premium does
> not in any way reflect the much lower true worth of the exiting business
> persons which no doubt a consortium of Kenyans investors can raise and
> potentially enable consumers to migrate enmasse to 100 p.c. "MKenya
> Network":-)
>
>
>
>   On Monday, March 3, 2014 9:44 PM, "Wambua, Christopher" <
> Wambua at cck.go.ke> wrote:
>   The regulator has just received the application. We are in the process
> of reviewing the application with a view to deciding the way forward.  It
> is therefore too early to subject the application to public consultation.
>
>  Wambua
>  Sent from my BlackBerry 10 smartphone.
>  *From: *ICT Researcher
> *Sent: *Monday, 3 March 2014 21:11 PM
> *To: *Wambua, Christopher
> *Reply To: *ICT Researcher
> *Cc: *KICTAnet ICT Policy Discussions
> *Subject: *[kictanet] Yu acquisition proposal to regulator
>
>   Airtel, Safaricom seek to buy Essar's Yu in Kenya - Safaricom will get
> Yu's infrastructure, while Airtel is expected to acquire Yu's subscriber
> base <
> http://www.livemint.com/Industry/BZZuR21BJsoJf6jksBhnVN/Airtel-Safaricom-seek-to-buy-Kenyan-rival-Essars-Yu.html
> >
>
>  Considering the profoundly adverse *Triopoly *consumer choice
> consequences,
>  Should the regulator not initiate a public consultation before decision
> making?
>
>
>
>
>
>
>
>
>
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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.
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