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

[Dennis Kioko]

The Regulator sometimes fails to do their job - for example, YU should not
have been merged into competitors, it should have been forced to seek a
buyer elsewhere if it wanted to sell.

An article on The Economist finds four mobile operators are good for a
country, and three or less are bad for customers
http://www.economist.com/news/britain/21641267-merger-o2-and-three-would-suit-investors-maybe-not-customers-mobile-marriages

On Sat, 21 Feb 2015 09:51 Josphat Karanja via kictanet <
kictanet at lists.kictanet.or.ke> wrote:

> 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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> 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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