[kictanet] Equitel - M-Pesa battle heats up as Safaricom hikes termination fees

Fri Aug 21 16:03:05 EAT 2015

Question

What has been the prevailing rate of sending money from Airtel or Orange
Money to MPESA?

What of the reverse, sending money from MPESA to a bank account or to other
carriers?

This I think is what should inform the regulator's decision because unless
there is significant cost differential of terminating Equitel on MPESA
compared to Airtel Money or Orange, then price discrimination shouldn't
occur.

But having gone through the year 2008, we know how this one will play out.
CAK will commission of a long term cost blah blah study, and then impose a
common termination fee like they did with voice.

Regards,

J

On Fri, Aug 21, 2015 at 3:49 PM, Ben Akoh via kictanet <
kictanet at lists.kictanet.or.ke> wrote:

> There's nothing wrong for the regulator to regulate anti competitive
> practices. It just has to ensure it does not cripple innovation in doing
> so.
>
> Sent from my iPhone
>
> On Aug 21, 2015, at 4:03 AM, Ali Hussein via kictanet <
> kictanet at lists.kictanet.or.ke> wrote:
>
> Walu
>
> The day regulation is allowed to move ahead of innovation is the day we
> write it's epitaph...
>
> *Ali Hussein*
> *Hussein & Associates*
> +254 770 906375 / 0713 601113
>
> Twitter: @AliHKassim
>
> Skype: abu-jomo
>
> LinkedIn: http://ke.linkedin.com/in/alihkassim
> <http://ke.linkedin.com/in/alihkassim>
>
> Blog: www.alyhussein.com
>
> "Discovery consists in seeing what everyone else has seen and thinking
> what no one else has thought".  ~ Albert Szent-Györgyi
>
> Sent from my iPad
>
> On Aug 21, 2015, at 11:50 AM, simiyu mse via kictanet <
> kictanet at lists.kictanet.or.ke> wrote:
>
> Prof. Ndemo's work in the liberation of the sector was a necessary move to
> reduce the barrier to entry for innovative services at the time.
>
> We have had a poster child of good behavior in Safaricom in my personal
> opinion and they have thrived on innovation and forward thinking to cover
> this much ground in so little time.
>
> There is a time for everything and I believe the regulatory framework has
> been given a fairly easy situation that can be railed back in without
> causing too much friction or that may show some semblance of some
> partisanship.
>
> This needs careful review and calculated steps to secure future players
> and ultimately the consumer rights and freedoms.
>
> I laud Kictanet for watching keenly.
>
> Ahsanteni.
> On Aug 21, 2015 8:40 AM, "Walubengo J via kictanet" <
> kictanet at lists.kictanet.or.ke> wrote:
>
>> +1,
>>
>> Safcom has played its card exactly as expected.
>>
>> And this is where it gets very interesting.  How to regulate a service
>> whose total value does not sit in one entity but cuts across multiple
>> players (banks, merchants, agents, application providers, competitors etc).
>>  Very interesting scenario since Kenya is once again staring at an
>> opportunity to show the rest of the world the best regulatory move in the
>> prevailing circumstances.
>>
>> Perhaps this time around, the risk of a wrong regulatory intervention
>> (regulatory error) may have a bigger impact than it would have had ten
>> years ago when Prof. Ndemo and the then CBK governor allowed mobile money
>> some liberal breathing space. That is not to say there should be no
>> regulatory intervention.  The question is: which one?
>>
>> Lets wait and see.
>>
>> walu.
>>
>> ------------------------------
>> *From:* ngethe.kariuki2007 via kictanet <kictanet at lists.kictanet.or.ke>
>> *To:* jwalu at yahoo.com
>> *Cc:* ngethe.kariuki2007 <ngethe.kariuki2007 at yahoo.co.uk>
>> *Sent:* Thursday, August 20, 2015 8:30 PM
>> *Subject:* Re: [kictanet] Equitel - M-Pesa battle heats up as Safaricom
>> hikes termination fees
>>
>> Since Safaricom is dominant in the mobile money termination market and in
>> the absence of any regulation, it is in their interest to maximise returns
>> in that "market segment" .So, Safaricom is behaving as expected!
>>
>> John Kariuki
>>
>>
>>
>> Sent from Samsung Mobile
>>
>>
>>
>> -------- Original message --------
>> From: Dennis Kioko via kictanet <kictanet at lists.kictanet.or.ke>
>> Date:
>> To: ngethe.kariuki2007 at yahoo.co.uk
>> Cc: Dennis Kioko <dmbuvi at gmail.com>
>> Subject: [kictanet] Equitel - M-Pesa battle heats up as Safaricom hikes
>> termination fees
>>
>>
>> Good Afternoon Listers,
>> Safaricom has increased termination fee - the amount of money paid to it
>> by Equitel for money to be sent from one network to another.
>>
>> This has left Equitel users with high transaction costs on Equitel to
>> M-Pesa transactions. See story
>> here http://www.infotake.co.ke/2015/08/equitel-users-silently-hit-by-100.html
>> <http://www.infotake.co.ke/2015/08/equitel-users-silently-hit-by-100.html>
>>
>>
>> --
>> with Regards:
>>
>> blog.denniskioko.com <http://www.denniskioko.com/>
>>
>>
>>
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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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> _______________________________________________
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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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> 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
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