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

[Victor Kapiyo]

I would be interested to understand from CA, the role of the Competition
Authority in this discussion vis its mandate under the Competition
Act,2010, and why the Communications Authority continues to have a role on
matters competition. IMO, I think it would be prudent to have the
Competition Authority take the lead on this question given its mandate
under the law.

*Victor Kapiyo*

Advocate of the High Court of Kenya & Commissioner for Oaths
*Suite No. 8, Centro House, Westlands, Nairobi*
*Office Tel: 020 440 4410; Cell: 0721 847 178 *
====================================================
*“Your attitude, not your aptitude, will determine your altitude” Zig
Ziglar*

On 23 February 2017 at 23:55, Gabriel via kictanet <
kictanet at lists.kictanet.or.ke> wrote:

> Guys,
> Competition Authority refused to be involved in matters between Safcom and
> the regulator.
> Back in 2015, CAK, wrote to CA and and asked if Safcom had abused their
> position.
> From DG of CA, to CS Matiang'i and the then PS Tiampati, no one was able
> to reply to that question.
> Read below;
> http://www.businessdailyafrica.com/Corporate-News/Reprieve-
> Safaricom-CAK-refutes-dominant-player-tag/539550-2650002-un4mtj/index.html
>
> So if you look at the grand scheme of things splitting Safcom is going to
> be done so as to create room to expedite growth room for another player who
> I will NOT name now. But look very closely. I mean very closely ....
>
> Get Outlook for iOS <https://aka.ms/o0ukef>
>
> ------------------------------
> *From:* kictanet <kictanet-bounces+gwarigi=msn.com at lists.kictanet.or.ke>
> on behalf of Grace Githaiga via kictanet <kictanet at lists.kictanet.or.ke>
> *Sent:* Thursday, February 23, 2017 5:01:44 PM
> *To:* gwarigi at msn.com
> *Cc:* Grace Githaiga
> *Subject:* Re: [kictanet] Safaricom faces M-Pesa break up in market
> dominance war
>
> 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
>
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>
>
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>
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>
> 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-P
> esa-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
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> www.kictanet.or.ke
>
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> Co-Convenor
> Kenya ICT Action Network (KICTANet)
> Twitter:@ggithaiga
> Tel: 254722701495
> Skype: gracegithaiga
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> Linkedin: https://www.linkedin.com/in/gracegithaiga
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> "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 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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