[kictanet] [isoc_ke] Should Safaricom be broken up as 'recommended' by Airtel?

[Josphat Karanja]

>From a birds eye view, capitalism/markets are not perfect and thus the need
for regulations to keep the market in check. Extreme case being to breakup
a dominant player.

Its is this same argument that has been used to support firms which are
deemed to be "too big to fail".

Once in a while factors (some which have nothing to do with the company's
innovativeness) will conspire to make one company dominant and the
regulators have to step in and break it up otherwise we are all help
hostage as @Walu pointed out earlier.

I remember a few years back when KDN (currently liquid) was dominant in the
infrastructure market and the panic it caused when it was nearly
collapsing....

Josphat
On Feb 21, 2015 9:39 AM, "Odhiambo Washington via kictanet" <
kictanet at lists.kictanet.or.ke> wrote:

>
>
> On 21 February 2015 at 09:20, Ngigi Waithaka via kictanet <
> kictanet at lists.kictanet.or.ke> wrote:
>
>> Phares,
>>
>> The difference is, they compete against each other in the market and
>> hence push the market and innovations forward.
>>
>> Think of it this way, what if Telkom Kenya hadn't been broken up? There
>> would not have been a Safaricom.
>>
>> IMO, Safaricom should not be curtailed, but broken into two:
>> 1. Safaricom Telcom: Mobile Voice, Data etc Services
>> 2. Safaricom Money: Mpesa, Mshwari etc
>>
>> Safaricom Money as an independent entity should then be a BFF to every
>> Telcom local and International in Money Transfer.
>>
>> Following Ali's argument, this is the company to promote and it could
>> easily be the first Kenyan Company in Fortune 100.
>>
>> But as long as its inside Safaricom where its used as a competetive tool
>> against local competition, it will always remain a small operation
>> internationally and with
>>
>
> ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
>
>> time it will stifle local creativity in Mobile Money.
>>
>>
>> Ngigi,
>
> So, with the argument that M-Pesa and it's siblings M-Name-it is used as a
> competitive tool against local competition, does it not go without saying
> that the competition should also get their Mobile Money services outside
> the wings of the Telco to compete with M-Pesa on level playing field?
> I still think Dennis got this right. These other entities are just not
> being competitive.
>
> --
> Best regards,
> Odhiambo WASHINGTON,
> Nairobi,KE
> +254733744121/+254722743223
> "I can't hear you -- I'm using the scrambler."
>
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