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

Wed Feb 22 06:50:04 EAT 2017

Unfortunately that definition is still too complicated :-), which is
why we encounter challenges some people equate nurture to free milk
given during the Nyayo era which had a corresponding effect on school
attendance , some removal of VAT on computers and ICT equipment like
it was during the Kibaki era which had a corresponding effect on the
ICT Sector.

Kongoi as we we say in Mogotio

On 2/22/17, Admin CampusCiti <info at campusciti.com> wrote:
> 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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>>>>>>> people and institutions interested and involved in ICT policy and
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>>>>>>>
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>>>>>>
>>>>>> _______________________________________________
>>>>>> kictanet mailing list
>>>>>> kictanet at lists.kictanet.or.ke
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>>>>>>
>>>>>> Unsubscribe or change your options at
>>>>>> https://lists.kictanet.or.ke/mailman/options/kictanet/info%40alyhussein.com
>>>>>>
>>>>>> 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.
>

-- 
Barrack O. Otieno
+254721325277
+254733206359
Skype: barrack.otieno
PGP ID: 0x2611D86A