[kictanet] Yu acquisition proposal to regulator

Mon Mar 10 14:58:23 EAT 2014

In 2012 CCK made a bold announcement about reinstating the glide path for
MTR and shared the following figures, to what extent has this been achieved?

*1.      **Call Mobile Termination Prices*

*Nominal KES.*

*1st July 2010*

*1st July 2011*

*1st July 2012*

*1st July 2013*

*1st July 2014*

Mobile Termination

2.21

2.21

1.44

1.15

0.99

On Mon, Mar 10, 2014 at 10:00 AM, Brian Munyao Longwe <blongwe at gmail.com>wrote:

> Interesting thread, my view however is that given Safaricoms portion of
> the addressable market we have an effective monopoly. CCK have not been
> tough enough on controlling the significant market power that big green
> yields and this has led to the demise and poor health of their so called
> competitors.
>
> Why should we be discussing MVNOs now, when this is a lifeline that could
> have been thrown to the ailing telcos several years ago? IMHO we should
> have had MVNOS licensing introduced 10+ years ago.
>
> Now we have too little, too late...
>
>
> On Thursday, March 6, 2014, John Kariuki <ngethe.kariuki2007 at yahoo.co.uk>
> wrote:
>
>> Walu,Listers,
>>
>> The primary  issue here is one of "merger" which is well defined in the
>> Competition Act,Cap504,Laws of Kenya whose primary role is to promote and
>> safeguard competition...etc etc.
>> .It is a telecommunications issue on secondary basis and CAK will have
>> some role to play.
>> In some countries, they call it "concurrent jurisdiction" and clearly
>> define the relationship between the regulators.It does not seem so in Kenya
>> and the real  legal muscle may  well lie with the Competition Authority .
>>
>> John Kariuki
>>
>>
>>
>>   On Tuesday, 4 March 2014, 14:52, Walubengo J <jwalu at yahoo.com> wrote:
>>  @Ali,
>>
>> I think you are refusing to see  the efficacy of MPESA in the Safaricom
>> ecosystem. Whereas Voice still contributes their largest profit
>> percentages, this voice market is glued  together around the MPESA product.
>>
>> Think Microsoft of the last decade.  Why was their applications so
>> successful (MS-Word, MS-Excel, MS-Exchange, etc)?  Because they were build
>> around their fairly universal and monopolistic Operating System
>> (MS-Windows).  In todays world of tablets and Smartphones and
>> CloudComputing,  the Operating system of choice has changed (from Microsoft
>> to Android,  iOS and CloudServices i.e. TCP/IP).
>>
>> Suddenly Microsoft finds itself exposed on their product lines (Word,
>> Excel, etc) because they have lost the monopoly of the Operating System.
>> Same thing with Safcom.  You expose MPESA to real competition, you break
>> their stronghold on the Voice and other data services.  That is what  I
>> blogged about @http://tiny.cc/3o36bx (thnx GG for sharing :-)
>>
>> Safaricom is clever (that is why they are no. 1)  and one can see from
>> their recent industry moves that they are reacting appropriately.  What I
>> dont know is if CCK can also their overall game plan and what it means for
>> the industry. Sorry, let me rephrase that - I think CCK can also see the
>> Safaricom game plan, but I am still not sure they have the "oomph" to
>> intervene one way or the other.
>>
>> At this point in time, the game has moved from being "technical", gone
>> through being "economical" and we are now at the stage where the big
>> boys(where are the girls :-() in politics are receiving calls from
>> interested parties on which way the game should end. I dont have moles way
>> up there but ladies and gentlemen this discussion (Yu acquisition) must now
>> at a the Politcal layer.
>>
>> You and I can only wait and see - and run to court if we feel aggrieved
>> by the final decisions taken.
>>
>> walu.
>> --------------------------------------------
>> On Tue, 3/4/14, Ali Hussein <ali at hussein.me.ke> wrote:
>>
>> Subject: Re: [kictanet] Yu acquisition proposal to regulator
>> To: jwalu at yahoo.com
>> Cc: "KICTAnet ICT Policy Discussions" <kictanet at lists.kictanet.or.ke>
>> Date: Tuesday, March 4, 2014, 1:42 PM
>>
>> Edith
>> +1.
>> Mark, sometimes regulatory action is used as a
>> weapon when one has been unable to compete. My take is that
>> Mpesa isn't yet the bread and butter of Safaricom. The
>> greatest value it has is in its network effect. I suspect
>> that Safaricom is already on the hunt for the next big
>> thing. They are building out WiMAX networks, engaging
>> businesses for computing needs etc. This boring stuff is
>> where the money is.
>> My take? CAK (CCK) needs to stand down on this
>> one and let the market take its course. After all what else
>> does the competition need to be done for them to compete
>> with Safaricom? Share out subscribers through legislation? I
>> think this isn't a perfect market but the regulator here
>> is doing an ok job..
>>
>> 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 12:12 PM, Edith Adera <eadera at idrc.ca>
>> wrote:
>>
>> Mark and
>> Listers,
>>
>> If I were Safaricom, I would do exactly what they are
>> doing and MORE! That is the nature of competition!
>> But if the consumer behaved differently.....aka
>> "rational consumer behaviour"......would the
>> competition hold? ....I dont think for long!
>>
>> Edith
>> ________________________________________
>> From: Mark Mwangi [
>>
>>
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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.
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