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

Wed Feb 22 07:12:25 EAT 2017

Barrack

The free milk is part of nurturing. We now just need to translate what I posted into relevant use cases across the country.. :-)

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 6:50 AM, Barrack Otieno via kictanet <kictanet at lists.kictanet.or.ke> wrote:
> 
> 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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>>>>>>> 
>>>>>>> _______________________________________________
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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.
>> 
> 
> 
> -- 
> 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.
> 
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