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

Thu Feb 23 17:01:44 EAT 2017

    The thing is that report is already 'leaked' or how else would
Jaindi be chambuaring it for us. So it will be interesting to see the
final report that is 'undergoing internal review'. And I guess we can
interpret this 'reviewing' in different ways. But you also raise a
good point. What were the TORs? Was Safaricom already declared
dominant and therefore these specific recommendations? Did the
Consultant draw these recommendations based on opinions from some
quarters? 

Look at this from the article:"_The report has also recommended
‘replicability of retail tariffs’ meaning that whenever Safaricom
is deciding a promotion or a loyalty scheme - for instance ‘Bonga
points’ or ‘Storo’ - the regulator must check and ensure that
the offer is being profitably replicated by a reasonably efficient
competitor". _Really? So Companies have no independence in deciding on
their promotional products to attract more customers? 

In addition,  I thought we have a Competition Authority that should
deal with competition matters? Yes?

Wacha tungonjee hiyo ripoti after it has been 'reviewed'. 

Best regards

Githaiga, Grace

On Thursday, 23-02-2017 at 16:21 Ali Hussein wrote:

GG and all

I'm really curious:-

1. 

This document seemedvery loaded. And it seems that it has gone beyond
its mandate? Were theConsultants 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 seenthereport,
but bristled at the prospect of an external party ordering thecompany
to break up its business.

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

Absolutely. I can't blame him for that.

It also seems like the Regulator is Regulating Safaricom for
thecompetition 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...

AliHussein

Principal

Hussein & Associates

Tel: +254 713 601113

Twitter: @AliHKassim

Skype: abu-jomo

LinkedIn: 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  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

"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.

_______________________________________________
kictanet mailing list
kictanet at lists.kictanet.or.ke
https://lists.kictanet.or.ke/mailman/listinfo/kictanet
Twitter: http://twitter.com/kictanet
Facebook: https://www.facebook.com/KICTANet/

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.

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.

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <https://lists.kictanet.or.ke/pipermail/kictanet/attachments/20170223/9d498197/attachment.htm>