[kictanet] KICA Amendments: Control of anti-competitive practices by telecommunication operators

Fri Oct 25 11:39:27 EAT 2019

Reminds me of Nairobi County Government. They stopped issuing unified
licenses since they felt they were losing potential income from multiple
streams. I suspect this is the thinking around separation of products and
services offered by Telcos.

Best Regards

On Fri, 25 Oct 2019, 11:14 am Adam Lane via kictanet, <
kictanet at lists.kictanet.or.ke> wrote:

> It is impossible to split telecommunications businesses in the digital
> economy. If a telco sells connectivity to a farm or a farmer, is it an
> agricultural company? Sells to a bank, is it a finance company? Maybe not.
> Then what if it adds some services to that connectivity… what service
> counts as additional businesses? And what if it is a partner’s service?
> Telcos’ have the unique capability to reach every single person in this
> country, they should be encouraged to do that rather than hindered. Right
> now e-health, e-agri etc are still really under-developed in this country.
> They need more support and stronger players to push in that space… leaving
> it to start-ups on their own will not succeed.
>
>
>
> Besides, what if the telco just creates a separate company 100% owned (and
> controlled and managed) by itself, then what is the point of that – it is
> just a department of the telco.
>
>
>
> Surely if there is already a framework in place for licenses in any
> industry, and if a telco gets into that business it would need to apply for
> that license anyway; for example if the telco started selling medicines
> online, then it (or its partner) would need the relevant license, and I
> don’t think anyone would argue with that.
>
>
>
>
>
> *From:* kictanet [mailto:kictanet-bounces+adam.lane=
> huawei.com at lists.kictanet.or.ke] *On Behalf Of *Ali Hussein via kictanet
> *Sent:* Friday, October 25, 2019 6:29 AM
> *To:* Adam Lane <adam.lane at huawei.com>
> *Cc:* Ali Hussein <ali at hussein.me.ke>; KICTAnet ICT Policy Discussions <
> kictanet at lists.kictanet.or.ke>
> *Subject:* Re: [kictanet] KICA Amendments: Control of anti-competitive
> practices by telecommunication operators
>
>
>
> Exactly!
>
> *Ali Hussein*
>
>
>
> +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 25 Oct 2019, at 6:22 AM, Barrack Otieno <otieno.barrack at gmail.com>
> wrote:
>
> 
>
> Dear Ali,
>
>
>
> Many thanks for your insightfull responses. This is where we need expert
> guidance, what i know is that you don't start taxing a baby at birth, you
> nurture them until they start boasting of their own balance sheet then you
> strike. I think we are trying to solve the wrong problem with the wrong
> approach. I use mpesa to buy airtime for my Telkom line. Not sure if that
> is competition or coopetition. I bet what makes the later tick is
> responsibility, reliability and resilience. Basically what the Customer
> wants. The other players should first up their game and then talk about
> dominance. Secondly do we really have a digital market worth breaking up or
> are we walking in imagination. Do we even have a local definition of the
> digital economy? Every sector that is taxed needs budgetary facilitation
> and support from government. I bet that would be a good starting point.
>
>
>
> On Fri, 25 Oct 2019, 6:06 am Ali Hussein, <ali at hussein.me.ke> wrote:
>
> @Barrack
>
>
>
> To quote your mosquito and hammer analogy.
>
>
>
> Most people don’t know that from a technological perspective Mpesa was
> actually inferior to the other players in the ecosystem. Airtel Money and
> now T-Kash. What Safaricom did and continue to do is simple:-
>
>
>
> They executed and continue to execute better than everyone else. Including
> the banks.
>
>
>
> Let me give you some examples.
>
>
>
> 1. There will be no Fintech to speak of today in Kenya without Mpesa.
> Fact.
>
> 2. Mobile Banking is almost 100% based on Mpesa.
>
> 3. The Banks that have the lion’s share of mobile lending (Not Tala, not
> Branch), but KCB and NCBA have that pivotal position because of their
> partnership with Safaricom.
>
> 4. Yet still more than 80% of transactions in this country is still in
> cash. Instead of everyone and his grandmother crying foul that Safaricom is
> dominant why not go for the 80% that still operate cash? We have a scarcity
> mentality, is what we have.
>
>
>
> Let me go back to the issue of breaking up Mpesa.
>
>
>
> I ask, is that really the best option? Us Africans have one serious
> problem. We think too small. In terms of our little countries and villages.
> My humble remedy to this ‘false’ dominance:-
>
>
>
> 1. Assist Safaricom to become globally dominant. The remittance market
> worldwide moves $600 billion every year. Peer to peer. The kind of business
> that Mpesa has excelled in. What is Mpesa’s global market share in
> remittances? Less than 1%!  What really are we talking about??
>
>
>
> 2. Put in place policies to ensure that Safaricom contributes a percentage
> into a Sovereign Fund to fund and activate a FinTech Ecosystem that is
> second to none in the world - Open Banking, APIs ecosystem, seed funding
> etc. instead of cutting off the goose that lays the golden eggs nurture her
> and let her produce more geese that lay golden eggs.
>
>
>
> 3.  Mpesa is a defacto NeoBank (a bank that is a 100% digital and reaches
> customers using mobile and computer networks only and don’t require
> physical branches). Mpesa is forced to partner with banks because of
> outdated financial policies and regulations that need to be kicked in the
> butt and brought into the 22nd Century, kicking and screaming!
>
>
>
> 4.  Create an Open Banking/Open Mobile environment where players are
> literally forced to share their networks via APIs so that players can
> compete on an even playing field. Let players charge for their rails if
> they must. Within reasonable parameters. In fact, Safaricom’s *Daraja
> Platform *already does this well.
>
>
>
> This, in my humble opinion, will be the best way to ‘tame’ dominance.
> Market Failures and breaking up companies is an excuse for lazy policy
> makers and regulators to correct a ‘mistake’ that customers want. Abuse of
> ‘dominance’ won’t have happened int the first place if policy makers and
> regulators didn’t suffer from a disease I call #StateCapture. A malaise
> that is brought about by not seeing the bigger picture.
>
>
>
> We don’t have a problem of dominance. We have a problem of laziness. Let’s
> cure that!
>
>
>
> *Ali Hussein*
>
>
>
> +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 24 Oct 2019, at 11:55 PM, Barrack Otieno via kictanet <
> kictanet at lists.kictanet.or.ke> wrote:
>
> 
>
> I think as the business and the sector matures separation will be key.
> Convergence also makes it hard to measure the digital economy from a
> product or service perspective.
>
>
>
> Regards
>
>
>
> On Thu, 24 Oct 2019, 11:51 pm Mwendwa Kivuva, <Kivuva at transworldafrica.com>
> wrote:
>
> Thanks Barrack.
>
>
>
> To your question, the main aim of this bill as indicated in the document
> is to "aid in the control of anti-competitive practices by large
> telecommunication industries in the sector."
>
>
>
> Just for context, I saw the acting CEO of Safaricom in the news today
> challenging the dominance and competition issue.
>
>
>
> He said that Safaricom's other main non-telecommunication business,
> M-pesa, could never have been successful without being bundled with voice
> and data. He said that the first 5 years of M-pesa was never successful. It
> was subsidized by voice and data. He also said he does not see the point of
> separating M-pesa to punish Safaricom for investing heavily to make the
> business successful.
>
> On Thursday, 24 October 2019, Barrack Otieno <otieno.barrack at gmail.com>
> wrote:
>
> Dear Kivuva,
>
>
>
> I am confused on this one though it makes sense to distill the components
> of converged networks. In a way, it will provide better premises for
> measuring the digital economy. I am ok with this clause. It needs further
> clarity and meat.
>
>
>
> Regards
>
>
>
> Regards
>
>
>
> On Thu, 24 Oct 2019, 9:32 am Mwendwa Kivuva via kictanet, <
> kictanet at lists.kictanet.or.ke> wrote:
>
> This is a continuation of the debate to amend the Kenya Information and
> Communications Act (KICA).
>
>
>
> Comments and thoughts are welcomed for yesterday's debate moderated by
> Mercy Mutemi on the regulation of social media and blogging. We can
> continue contributing through that thread.
>
>
>
> Today, we discuss the amendments to KCIA published on March 15th, 2019,
> recommended by Hon Elisha Odhiambo, MP, seeking to add a new section 25A on
> splitting telecommunications businesses, and section 34A on the
> compensation of telecommunications consumers on call drops, and section 84J
> prescribing how the Universal Service Fund (USF) should be used.
>
>
>
> *The new Section 25A requires telecommunications operators to*
>
> - Obtain a license for additional business.
>
> - Legally split the telecommunications business from additional business.
>
> - Provide separate accounts and reports in respect of all business carried
> out.
>
> - Require Communications Authority to report compliance annually to
> Parliament.
>
>
>
> The reasons given for this bill are to allow telecommunications companies
> to engage in other businesses, and also aid in the control of
> anti-competitive practices by large industries in the sector.
>
>
>
> What are your thoughts on this amendment? Do we have any specific
> recommendations we can pass to Parliament through the public participation
> process?
>
>
>
> Warm Regard
>
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> 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
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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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