[kictanet] Safaricom faces M-Pesa break up in market dominance war

Thu Feb 23 16:21:44 EAT 2017

GG and all

I'm really curious:-

1. 
This document seemed very loaded. And it seems that it has gone beyond its
mandate? Were the Consultants asked to provide recommendations to remedy a
'Dominant' position? it would be good if we could have seen the TOR for
this assignment.

To quote the article:-

2. 
Safaricom chief executive Bob Collymore said he had not seen the report,
but bristled at the prospect of an external party ordering the company to
break up its business.

“I am pretty hostile to the idea. We can’t have other people dictating
whether we break up our company or not,” he said.

Absolutely. I can't blame him for that.

It also seems like the Regulator is Regulating Safaricom for the
competition not for the consumer
 - if of course the leaked report is to be believed.

Then the leaked document talks about the possibility of splitting M-Pesa
from Safaricom but stopping shot of making the split permanent - as in
split them but let them remain under one legal entity. In commercial terms
this is known as creating 'Chinese Walls'. We all know how that works.

IT NEVER WORKS!!

Besides which. Breaking up companies is simply a Regulatory tool fit for
the AT&Ts, Standard Oils (which by the way is back as one huge conglomerate
after being split into more than 50 companies) of this world.

3. This is the information age. The Networked Age, The Millenial Age. The
core potential customers don't care about Nationality, colour, creed or
whatever else. All they care about is What have you done for me lately? or
better still - What can you do for me now?

Its clear Safaricom has earned its strips. Remedying market power abuse
cannot be to split up the company. The idea that you punish a successful
company by cutting it into pieces is preposterous in 2017.

4. CA, we would like to see the report before 'internal' review. We would
like to see it before it is edited. This is the age of transparency. We
would hope that the report we finally see as the community will look the
same as the one Jaindi Kisero seems to be privy to.

Share the report already...

*Ali Hussein*

*Principal*

*Hussein & Associates*

Tel: +254 713 601113

Twitter: @AliHKassim

Skype: abu-jomo

LinkedIn: http://ke.linkedin.com/in/alihkassim
<http://ke.linkedin.com/in/alihkassim>

13th Floor , Delta Towers, Oracle Wing,

Chiromo Road, Westlands,

Nairobi, Kenya.

Any information of a personal nature expressed in this email are purely
mine and do not necessarily reflect the official positions of the
organizations that I work with.

On Thu, Feb 23, 2017 at 1:32 PM, Grace Githaiga via kictanet <
kictanet at lists.kictanet.or.ke> wrote:

> As the draft Dominance report undergoes internal review at CA, Jaindi
> Kisero continues to provide some snapshots.
>
>
> "Telecoms operator Safaricom could be forced to hive off its popular
> mobile money service M-Pesa if sector regulator, the CA, moves to implement
> recommendations of a market dominance report.
>
> Separating the highly profitable mobile money service from Safaricom’s
> core telecoms business – commonly referred to as functional separation - is
> the gist of a raft of recommendations that international consultants
> - Analysys Mason - have made in a yet-to be published reportseen by the
> Business Daily."
>
>
> More details: http://www.nation.co.ke/business/Safaricom-faces-M-
> Pesa-break-up-in-market-dominance-war-/996-3824618-vdv5gw/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
>
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