[kictanet] Yu acquisition proposal to regulator

Tue Mar 4 11:01:32 EAT 2014

Coincidence that Equity bank was planning to 'take over' Yu in order to
compete with M-pesa?

Pre-emptive action to kill potential competition?

On Tue, Mar 4, 2014 at 3:02 PM, Dennis Kioko <dmbuvi at gmail.com> wrote:

> The regulator has the option to create choice by either licensing a 4th
> operator or licensing a mobile virtual network operator.
>
> For most of the part, YU wasn't really creating much of a choice.
>
> The market is plagued by poor product differentiation coupled with poor
> marketing to some extent.
>
> Perhaps, what we need is new blood.
>
> Also, MVNO applicants are mostly local players who may have a better
> understanding of our market.
>
> The only argument here is that the buying up of Yu's infrastructure may
> pose a challenge to anyone looking to start an MVNO.
> On 4 Mar 2014 09:34, "Mark Mwangi" <mwangy at gmail.com> wrote:
>
>> @Edith the reason it doesn't work here is because of arrogance or
>> incompetence by the competition. There is no reason as to why the small
>> players have not ganged up and built joint infrastructure like 3G networks
>> to rival Safaricom. I have always said hey should push for twin sim phones
>> to make space on peoples phones but the tend to think selling galaxy phones
>> will translate to profits.
>>
>> Look at Orange. They should have a monopoly on the iPhone game but now
>> Safaricom sell iPhone too.
>>
>> Airtel treat clients like they are doing hem a favour right from the
>> Kencell days. I don't know what Yu's strategy was.
>>
>> @Dennis and @Ali I think this is a bad deal and the regulator shouldn't
>> allow it. It will further constrict choice and thus make a mockery of the
>> license grant in the first place.
>>
>>
>> On Tue, Mar 4, 2014 at 9:08 AM, Edith Adera <eadera at idrc.ca> wrote:
>>
>>> BIG QUESTION
>>> Why can't Kenya sustain a "multi player" environment?  Ive argued for
>>> years that it has to do with peculiar "consumer behaviour" of Kenyans. Open
>>> competition has not worked, number portability has not worked.....what will
>>> sustain a vibrant multi player environment?
>>>
>>> I've just returned from Ghana where the 4+ players have all sorts of
>>> offerings whooing consumers left, right and centre...you have all sorts of
>>> incentives that seems to keep all players afloat....number portability
>>> works etc etc.
>>>
>>> Why not Kenya?
>>>
>>> What's your take?
>>>
>>> Edith
>>> ________________________________________
>>> From: kictanet [kictanet-bounces+eadera=idrc.ca at lists.kictanet.or.ke]
>>> on behalf of Ali Hussein [ali at hussein.me.ke]
>>> Sent: Monday, March 03, 2014 11:47 PM
>>> To: Edith Adera
>>> Cc: KICTAnet ICT Policy Discussions
>>> Subject: Re: [kictanet] Yu acquisition proposal to regulator
>>>
>>> Dennis
>>>
>>> Couldn't agree with you more.
>>>
>>> In this particular case the regulator will do best to stand down and let
>>> market forces play out.
>>>
>>> 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 4, 2014, at 7:18 AM, Dennis Kioko <dmbuvi at gmail.com<mailto:
>>> dmbuvi at gmail.com>> wrote:
>>>
>>>
>>> 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<mailto:
>>> 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<tel:%2B254%200770%20906375> / 0713 601113
>>> <tel:0713%20601113>
>>>
>>> "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
>>> <mailto: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<mailto: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,
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>>
>>
>>
>> --
>> Regards,
>>
>> Mark Mwangi
>>
>> markmwangi.me.ke
>>
>>
>>
>>
>>
>> _______________________________________________
>> kictanet mailing list
>> kictanet at lists.kictanet.or.ke
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>>
>> Unsubscribe or change your options at
>> https://lists.kictanet.or.ke/mailman/options/kictanet/dmbuvi%40gmail.com
>>
>> 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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>
> 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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