[kictanet] Yu acquisition proposal to regulator

[Kamotho Njenga]

Public dialogue on the proposal is absolutely necessary even at this stage.
At the moment the matter may sound like just a small conversation between a
few entrepreneurs, yet this is a matter that potentially has huge
ramifications for the subsequent trend and outlook of the industry at
large. Of course the situation in which YuMobile has found itself in
arouses genuine sympathy. No one in this world would be impressed to
helplessly watch as their investment perpetually sheds off its glory.

The debate about the impending acquisition of Yu Mobile by Safcom and
Airtel must be subjected to a rigorous public discourse. As a priority it
is important to clarify what assets and titles can legitimately be passed
on by YuMobile to a prospective buyer. Various aspects come to mind at this
stage 1. YuMobiles Assets including infrastructure 2. YuMobiles liabilities
including customer mobile money balances (YuCash deposits) and unspent
airtime 3. YuMobile license- This belongs to CCK who hold it in trust for
Kenyans 4. YuMobile subscribers. 5. Owners Equity-This is the unmutilated
part of the investment that owners are probably seeking to salvage within
the next few seconds before further depreciation occurs

So what are the implications of this reality?

1. That YuMobile is a multi-stakeholder entity- Hence no single stakeholder
can singularly purport to drag the rest into any deal that alters their
bonafide interests without seeking consent.
2. YuMobile can dispose off its assets as it wishes on condition that it
first offsets its all its liabilities particularly those owed to subscribers
3. Once it has been deemed clear that YuMobile's existence in the market is
no longer sustainable, the license granted to YuMobile must be returned for
safe custody to CCK pending the next step.
4. Upon receiving the license CCK must subject the license to a fresh
bidding process so that any investor willing to inject new market
methodologies gets an opportunity. For the avoidance of doubt, only the
regulator can grant or cancel an existent license. Therefore, in the event
that YuMobile folds up or is bought off, the license will remain intact. It
cannot simply be "swallowed" through a business deal.
5. The suggestion that YuMobile can transfer subscribers to Airtel is a
hoax. Airtel is about to be conned. Those subscribers went for YuMobile
knowingly and fully aware of the existence of Airtel. I plead with Airtel
not pay a single cent in the name of buying subscribers. If they truly love
you, they will voluntarily surrender themselves into your tender arms once
YuMobile has vacated. There is no way you will subject them to a forced
marriage when they can easily purchase another SIM card from a service
Provider of their choice for only 20 bob. Please avoid buying "quails"
6. If YuMobile key owners have fully made up their mind to call it quits,
lets offer them a flexible exit plan as long as all sides are properly
balanced. There is no point watching a victim bleed to death simply by
subjecting him to unnecessary ceremonies. CCK should facilitate a tenable
exit plan while ensuring that public interest is not compromised

Kamotho Njenga


On Mon, Mar 3, 2014 at 9:07 PM, ICT Researcher <ict.researcher at yahoo.com>wrote:

> 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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