[kictanet] Consumer protection a means of cutting Safaricom’s dominance

Wed Feb 22 06:38:10 EAT 2017

Nurture:-

In English:-
Care for and encourage the growth or development of..

In Kiswahili:-
Kulea, kubembeleza kwa miajili ya kukuza na kufanisha

In Mogotio, Kenya 
Someone who speaks Tugen, Pokot or Njemps please help translate the above.. :-) I'm at my wits end.. :-)

Have a lovely day

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 22 Feb 2017, at 6:24 AM, Barrack Otieno via kictanet <kictanet at lists.kictanet.or.ke> wrote:
> 
> Hi Ali,
> 
> Kindly define nurture as you would to a District Commissioner in Mogotio.
> 
> Regards
> 
>> On 2/22/17, Ali Hussein <ali at hussein.me.ke> wrote:
>> Barrack
>> 
>> Im one of those old enough to remember. :-)
>> 
>> However my take is this:-
>> 
>> The markets have evolved so much and the dynamics of innovation, the market
>> place and the consumer changed so much that the the Heavy Hand of Regulation
>> must now be tampered by the light touch of nurturing and encouraging
>> innovation and the market players to act and behave in a responsible manner.
>> Failure to which the Market will deal with them in a most ruthless manner.
>> The market won't break you up. It will decimate you and leave you for the
>> dead. Just ask Telkom Kenya, Posta, Nokia and other once 'Dominant' global
>> players.
>> 
>> I think we are focusing on the wrong things. By all means, keep a leash on
>> the lean, mean fighting machine that is Safaricom. But also nurture home
>> grown players -The PesaPals, the Cellulant, the WayaWayas, the Anganis, the
>> Zuku's and Jamiis to ensure that we build such a deep bench of players that
>> this Dominance conversation will be placed where it belongs - in the
>> dustbins of history.
>> 
>> Ali Hussein
>> Principal
>> Hussein & Associates
>> +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
>> 
>> 
>> Sent from my iPad
>> 
>>> On 22 Feb 2017, at 5:27 AM, Barrack Otieno <otieno.barrack at gmail.com>
>>> wrote:
>>> 
>>> Hi colleagues,
>>> 
>>> I need an explanation like a two year old on this whole dominance
>>> debate. Maybe Walu can help me here. Safaricom was a subsidiary of
>>> Telkom Kenya focused on the mobile phone (GSM) Segment. Looking back
>>> into the past and as a result of Liberization, the then giant Kenya
>>> Posts and Telecommunications Corporation was split into , Telkom
>>> Kenya, Communications Authority of Kenya (CCK then as the regulator
>>> and Posta to handle the post office. We need to step back and
>>> interrogate the real reasons as to why Progress of Telkom Kenya and
>>> Posta has backfired in a maximum of ten bullet points. On the other
>>> hand, we also need to figure out how Safaricom (a subsidiary of Telkom
>>> Kenya which is now a public company bolted out of the stable and
>>> became a success). My simple questions:
>>> 
>>> 1. Will a split of Safaricom yield the desired effect?
>>> 2. Is it in the interest of Safaricom (the company or organization
>>> that is a legally recognized person by the laws of the land to split
>>> so as to suit the competition.
>>> 3. Can someone share case  studies of where this has worked before?
>>> 
>>> Walu or anyone as old as Kenya Posts and Telecommunication Corporation
>>> please help.
>>> 
>>> Following...
>>> 
>>>> On 2/22/17, Ali Hussein via kictanet <kictanet at lists.kictanet.or.ke>
>>>> wrote:
>>>> @Mwendwa and all
>>>> 
>>>> it looks like that's what the consultant is suggesting.
>>>> 
>>>> Here are two other excerpts from the report that I find interesting:-
>>>> 
>>>> The most draconian of the prescriptions is the proposal to functionally
>>>> separate M-Pesa from Safaricom. This is tantamount to proposing a
>>>> break-up
>>>> of Safaricom because in terms of growth revenues, M-Pesa is on track to
>>>> reach 50 per cent of the company’s net revenues. The consultants have
>>>> also
>>>> proposed what they call “mandatory wallet-to wallet interoperability”, a
>>>> system where a consumer can keep cloud accounts across the platforms of
>>>> different mobile companies, making it possible to move and shift money
>>>> between accounts as one chooses.
>>>> 
>>>> I have said before and I'm happy to repeat this again. Separating M-Pesa
>>>> from Safaricom should not be forced on Safaricom. In my humble opinion
>>>> Safaricom should by now have done this voluntarily as a strategic
>>>> imperative
>>>> to transform itself into the De-Facto National (Regional) Mobile Payment
>>>> System. I think the lost opportunity here can be seen by the KBA
>>>> launching a
>>>> rival Mobile Platform called PesaLink.
>>>> 
>>>> The mandatory 'Wallet to Wallet' interoperability is an interesting
>>>> angle
>>>> and needs to seriously be considered. This sort of compliments my point
>>>> above.
>>>> 
>>>> They have also recommended a system that they call “agent to agent
>>>> interoperability”, where agents will be able to support multiple mobile
>>>> money platforms using what is described in technical language as “a
>>>> single
>>>> float”.
>>>> 
>>>> This is certainly interesting. In as much as this supports the notion of
>>>> 'User or Customer Experience'  I think the Regulator and the Telcos
>>>> should
>>>> work towards ensuring this becomes a reality. In essence this could be a
>>>> solution to the allegations that Safaricom discourages its agent network
>>>> from dealing with rival Telcos.
>>>> 
>>>> Lastly, I would largely concur with Jaindi Ksero's conclusion (sort of)
>>>> that
>>>> the Consultant has displayed a lack of knowledge in the functioning of
>>>> our
>>>> national payments system. I would however like to add one for the road:-
>>>> 
>>>> Are our Regulators (CA, CAK and CBK)  prepared to empower, grow and
>>>> regulate
>>>> with a light touch the seemingly fluid Telco, Banking, Payments and
>>>> Fintech
>>>> Spaces while ensuring that:-
>>>> 
>>>> a) They embrace innovation and new thinking while protecting National
>>>> Interests and consumers at the same time?
>>>> 
>>>> b) They work together without resorting to Turf Wars as evidenced in the
>>>> tiff between the CA and the CAK in 2015.
>>>> http://www.businessdailyafrica.com/Corporate-News/Competition--telecoms-watchdogs-to-seek-truce-over-Safaricom-/539550-2707286-lqu5sez/index.html
>>>> 
>>>> c) They consider creating a Joint Task Force to monitor, encourage and
>>>> empower players in the spaces mentioned to become Regional and Global
>>>> Players? I have often wondered aloud about the CBK's core mandate of
>>>> protecting Depositors' funds and wondered (again aloud) whether this
>>>> mandate
>>>> is outdated and that it should be expanded to that of becoming an
>>>> empowering
>>>> public entity that encourages research, innovation and entrepreneurship
>>>> in
>>>> the burgeoning convergence of Banking, Telcos, Payments and Fintech
>>>> Spaces.
>>>> d) Regulatory tools need to be rebooted and upgraded to reflect the
>>>> times.
>>>> The current scenarios are such that one doesn't even know anymore which
>>>> industry one operates in.
>>>> 
>>>> This is a plea for the Regulation Mandates to drastically change and
>>>> embrace
>>>> the now and the future.
>>>> 
>>>> Can the Future Czars step up?
>>>> 
>>>> 
>>>> Ali Hussein
>>>> Principal
>>>> Hussein & Associates
>>>> +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
>>>> 
>>>> 
>>>> Sent from my iPad
>>>> 
>>>>> On 21 Feb 2017, at 11:12 PM, Mwendwa Kivuva via kictanet
>>>>> <kictanet at lists.kictanet.or.ke> wrote:
>>>>> 
>>>>> So technically, we want to break up Safaricom so that these companies
>>>>> can gain some traction  "Airtel, has made cumulative debt to date of
>>>>> Sh51 billion, according to latest audited accounts for the financial
>>>>> year 2015. Indeed, in the league of loss makers, only Kenya Airways,
>>>>> with their Sh54 billion lost in the most recent years, compares to
>>>>> Airtel. As a matter of fact, the numbers in the company’s annual
>>>>> accounts show that Airtel is insolvent and only surviving on life
>>>>> support from the parent company in India. Safaricom’s only other
>>>>> rival, Orange Telkom, has gone through exceedingly difficult trading
>>>>> and financial conditions over the past decade. This a firm that is
>>>>> technically insolvent. It has gone through several episodes of
>>>>> restructuring that have not materially changed its circumstances."
>>>>> ______________________
>>>>> Mwendwa Kivuva, Nairobi, Kenya
>>>>> twitter.com/lordmwesh
>>>>> 
>>>>> 
>>>>> 
>>>>> 
>>>>> On 21 February 2017 at 23:48, Grace Githaiga via kictanet
>>>>> <kictanet at lists.kictanet.or.ke> wrote:
>>>>>> 
>>>>>> Jaindi Kisero gives us a glimpse of the competition study in the
>>>>>> telecommunication sub-sector undertaken by Ms Analysys Mason on behalf
>>>>>> of
>>>>>> CA. See full article:
>>>>>> 
>>>>>> "I recently came across a report by the consulting group Analysys
>>>>>> Mason
>>>>>> entitled "A telecommunication competition market study in Kenya".
>>>>>> Readers
>>>>>> will recall that these consultants were retained by the market
>>>>>> regulator
>>>>>> –
>>>>>> the Communications Authority of Kenya – to conduct a study whose
>>>>>> results
>>>>>> were to inform the crafting of a new framework for regulating abuse of
>>>>>> market dominance by the big players.
>>>>>> 
>>>>>> 
>>>>>> As expected, one of the key findings of this study is that Safaricom’s
>>>>>> market share in both the mobile communications and mobile money
>>>>>> segments
>>>>>> far
>>>>>> exceed the thresholds where firms are typically presumed to be
>>>>>> dominant."
>>>>>> 
>>>>>> 
>>>>>> http://www.nation.co.ke/oped/Opinion/consumer-protection-a-means-of-cutting-safaricom-dominance/440808-3822560-jsmlpbz/index.html
>>>>>> 
>>>>>> 
>>>>>> 
>>>>>> Best regards
>>>>>> 
>>>>>> 
>>>>>> Githaiga, Grace
>>>>>> 
>>>>>> 
>>>>>> Co-Convenor
>>>>>> Kenya ICT Action Network (KICTANet)
>>>>>> Twitter:@ggithaiga
>>>>>> Tel: 254722701495
>>>>>> Skype: gracegithaiga
>>>>>> Alternate email: ggithaiga at hotmail.com
>>>>>> Linkedin: https://www.linkedin.com/in/gracegithaiga
>>>>>> www.kictanet.or.ke
>>>>>> 
>>>>>> "Change only happens when ordinary people get involved, get engaged
>>>>>> and
>>>>>> come
>>>>>> together to demand it. I am asking you to believe. Not in my ability
>>>>>> to
>>>>>> bring about change – but in yours"---Barrack Obama.
>>>>>> 
>>>>>> 
>>>>>> 
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>>>>>> 
>>>>>> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder
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>>>>>> for
>>>>>> people and institutions interested and involved in ICT policy and
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>>>>> 
>>>>> _______________________________________________
>>>>> kictanet mailing list
>>>>> kictanet at lists.kictanet.or.ke
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>>>>> 
>>>>> Unsubscribe or change your options at
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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.
>>>> 
>>> 
>>> 
>>> --
>>> Barrack O. Otieno
>>> +254721325277
>>> +254733206359
>>> Skype: barrack.otieno
>>> PGP ID: 0x2611D86A
>> 
> 
> 
> -- 
> Barrack O. Otieno
> +254721325277
> +254733206359
> Skype: barrack.otieno
> PGP ID: 0x2611D86A
> 
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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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