[kictanet] Safaricom may face sanctions over network outage-of market shares and competition

Tue Apr 25 20:32:27 EAT 2017

		@Ngigi
I will concede the point on ITU... :-)
As for being a Safaricom Hardliner...All I can say is that my contributions on this list speaks for itself. I'm an equal opportunity offender. :-)
Mine is to declare my deep commitment to free markets and to eschew the 'Market Failure' conversation that leads to a declaration of dominance and 'dishing' out of market share to undeserving entities who will do nothing with it but proceed to lose it as quickly as they were given it.
So let's say for arguments sake we declare Safaricom dominant. What are the remedies? What tools does the regulator have to ensure we don't punish well run companies for being winners while rewarding failure. Let's have this conversation on 'correcting' 'dominance' as opposed to simply bashing. I'm on record severally disagreeing with something Safaricom has done. 
The other issue is of Regulators who are ill equipped to deal with a fast paced tech landscape. Read my blog on this issue:-
https://www.linkedin.com/pulse/pitfalls-runaway-innovation-regulators-who-slow-catch-kassim
 Bottom line is this:-
This is a mixed conversation - Market Dynamics and a 22nd century Regulatory Toolbox will do the trick. This is a surgeon's scalpel not an executioner's axe conversation.

		Ali Hussein
+254 0713 601113 

Twitter: @AliHKassim
Skype: abu-jomo
LinkedIn: http://ke.linkedin.com/in/alihkassim

"We are what we repeatedly do. Excellence, therefore, is not an act but a habit."  ~ Aristotle

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_____________________________
From: Ngigi Waithaka <ngigi at at.co.ke>
Sent: Tuesday, April 25, 2017 8:13 PM
Subject: Re: [kictanet] Safaricom may face sanctions over network outage-of market shares and competition
To: KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke>
Cc: Admin CampusCiti <info at campusciti.com>

@Ali,

Mr, you can shoot the messenger, just not the message!

ITU is not *irrelevant*. They have their study/studies on these issues, before you dismiss them in total, how about you look indepth at what they have to say, then counter that, point by point.

Otherwise I will label thee a *Safaricom hardliner* and ask you to declare any interests (Do they owe you any Bonga Points?) ; past, current, future :-)

Rgds

On Tue, Apr 25, 2017 at 8:00 PM, Admin CampusCiti via kictanet
<kictanet at lists.kictanet.or.ke> wrote:

@Walu

I'm hard pressed to take anything from ITU seriously.. :-)

I'm sorry but those guys still think we live in the Telegram era... 

The dynamics of the Telco market are simply too fluid to label dominant any player st this point. 

Ali Hussein
Hussein & Associates
+254 0713 601113 / 0770906375

Twitter: @AliHKassim

Skype: abu-jomo

LinkedIn: 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 25 Apr 2017, at 7:44 PM, Walubengo J <jwalu at yahoo.com> wrote:

@Ali,

ITU has a simplified way of calculating degree of competition in a specific market segment e.g mobile money
 market. It has a strange name,  the Herfindahl-Hirschman Index (HHI), but it seeks to determine market concentration beyond - 'how many players exists in a market?'.

It attempts to measure 'effective competition' by delving into the market share each of the players controls. In other words, a market of 4 players could actually be LESS competitive
 than a market of just TWO players -depending on their market shares. 

As an example, If two players exist in a market and split it equally on a 50:50 basis, that market is more competitive than one with 4 players where the share ratio is say 70:15:10:5.

Tafakari hayo :-)

walu

From: Admin CampusCiti via kictanet <kictanet at lists.kictanet.or.ke>

To: 
jwalu at yahoo.com 

Cc: Admin CampusCiti <info at campusciti.com>; KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke>

Sent: Tuesday, April 25, 2017 6:13 PM

Subject: Re: [kictanet] Safaricom may face sanctions over network outage

@Ngigi 

We have ourselves to blame. Or competitors for being 'weak' 

I'm simply not for the idea of 'rectifying' so called 'Market Failure' with the heavy hand of regulation. 

Dominance/Monopolies are a thing of the past. It maybe simplifying an issue but let's face it. Even with Mpesa being so dominant 90+% of our transactions in this country are still cash based. So
 where's the Dominance? :-)

Ali Hussein
Hussein & Associates
+254 0713 601113 / 0770906375

Twitter: @AliHKassim

Skype: abu-jomo
LinkedIn: 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 25 Apr 2017, at 5:39 PM, Ngigi Waithaka <ngigi at at.co.ke> wrote:

@Ali,

My concern is between now and when the so called 'market' takes care of this issue.

As we have seen yesterday, We are one hack away from the entire country being taken down almost completely by the failure of a single firm.

Twendeleeni vivyo hivyo!

On 25 Apr 2017 5:24 p.m., "Admin CampusCiti" <info at campusciti.com> wrote:

@Ngigi

I'm with Tom on this one. I actually don't see how the Dominance conversation has crept  into this discussion :-) 

We have a choice. 

For Mpesa 
1. Airtel Money.
2. PesaLink
3. MULA -  I actually now use Mula for all my bill payments. It's just super useful. Even the Safaricom App that's been launched doesn't hold a candle to Mula. 
4. Orange money.

For Connectivity 
1. Orange
2. Liquid
3. Airtel (by the way there are other parts of this country like Kilifi for example that Airtel has a far better network..
4. Surf by Facebook 😜
5. Zuku
6. JTL 

As Kenyans we simply cannot go back to having this Dominance conversation since we are in a free market and there is choice.

Vote with your wallet, like I have. Safaricom will continue to improve or it will become irrelevant. Think Microsoft, Think Compac, Think Kodak , Think Nokia.

C'mon guys..The market will take care of this issue. And guess what? 

YOU ARE THE MARKET (Chukua control wewe mwenyewe!!) 

Don't punish Safaricom for weakness in competitors and your own 'laziness' :-) to choose a different service provider if you are unhappy with current services. 

Ali Hussein
Hussein & Associates
+254 0713 601113 / 0770906375

Twitter: @AliHKassim

Skype: abu-jomo
LinkedIn: 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 25 Apr 2017, at 10:43 AM, Ngigi Waithaka via kictanet <kictanet at lists.kictanet.or.ke > wrote:

Ali,

Do you now see the wisdom of declaring Safaricom dominant and at least getting 2-3 other players with a sizeable market share to spread the risk?

When Safcom goes down and it will inevitably will at times, the following happens:
1. 80% of the country citizens are without communication
2. 80% of the country's citizens are without access to money & banking services.
3. 100% of the police security & communication system is offline.

We put all our country's eggs in that one basket... and the basket is bound to drop once in awhile....

On 25 Apr 2017 9:35 a.m., "Admin CampusCiti via kictanet" <kictanet at lists.kictanet.or.ke > wrote:

Listers

This issue continues to have serious ramifications. Yesterday Bob, the CEO, made a very impassioned statement on the downtime. I liked the fact that he said there's no excuse for such a thing to happen and that they are working on restoring full services. 

However, I think Bob's statement simply didn't go far enough. We are seeing a different Safaricom - one that seems attuned to the customer and more open that's why I'm disappointed that Mpesa is still down today morning and we have had nothing from Safaricom.
 A simple use of SMS to update us on an hourly basis is not too much to ask. 

It's clear that Safaricom is now so embedded in our lives that total openness is not only a must it's a Business Continuity Conversation. 

Ali Hussein
Hussein & Associates
+254 0713 601113 / 0770906375

Twitter: @AliHKassim

Skype: abu-jomo
LinkedIn: http://ke.linkedin.c om/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 24 Apr 2017, at 11:18 PM, Sidney Ochieng via kictanet <kictanet at lists.kictanet.or.ke > wrote:

Safaricom may face sanctions over network outage 

http://www.businessdailyafrica .com/news/Safaricom-may-face-s anctions-over-network-outage/5
 39546-3902518-15d86gnz/index.h tml

That one network has this much power over economy is frightening and must be addressed. Today has proven that it's not enough that Safaricom says they won't misuse their dominance, it's enough that if they fail the country slows to a crawl. 

Sent on the move, kindly excuse any typos. 

Sidney 

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-- 

Regards,

Waithaka Ngigi

Chief Executive Officer
 | Alliance Technologies | MCK
 Nairobi Synod Building

T +254 20 525 0750
|Office Mobile: +254 716 201061
| M +254 737 811 000

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