[kictanet] Yu acquisition proposal to regulator

Tue Mar 4 14:36:59 EAT 2014

Caveat Emptor? I'm quite sure the players involved (CCK, Airtel, Safaricom)
have considered various options - if Airtel feels it has money to waste,
good for them. YU was on the open market for a while, any of the players
who would bid for a new license considered buying an established business
(with customers and some revenues, lack of profits notwithstanding).

Equity Bank never intended to buy YU. It applied to be an MVNO, meaning
that it did not want to run it's own infrastructure so buying Essar must
have been off the table for them.

On Tue, Mar 4, 2014 at 2:11 PM, Kamotho Njenga <kamothonjenga at gmail.com>wrote:

> 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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> 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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-- 
Warm Regards,

Phares Kariuki

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