[kictanet] Safaricom battling pricing power with CA

Tue Feb 1 05:48:33 EAT 2022

@Barrack Otieno <otieno.barrack at gmail.com>

The fact that the CA is a government entity doesn't necessarily mean they
have the public interest at heart. What empirical evidence can you share
with us that can confirm this? For example this message below that I keep
on getting from Safaricom every month, despite the fact that I know I'm in
compliance with this regulation. If you ask as the Safaricom peeps they say
it's a regulatory requirement to send us repeat messages despite the fact
that they (Safaricom) already have the details of my compliance in
their database.

Dear Customer, urgently visit an M-PESA Agent, Dealer, or Safaricom Shop
with original ID to update your SIM registration.
Dial *106# for lines registered to you

I get this message like clockwork every month. There are other examples but
this is one of them.

*Ali Hussein*

Fintech | Digital Transformation

Tel: +254 713 601113

Twitter: @AliHKassim

Skype: abu-jomo

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

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 Mon, Jan 31, 2022 at 1:18 PM Barrack Otieno via KICTANet <
kictanet at lists.kictanet.or.ke> wrote:

> @Ali Hussein <ahussein at kictanet.or.ke>
> on this matter, I will cast my lot with the Communications Authority. My
> thoughts are CA has public interest at heart whereas Telcos have commercial
> interest. I also think it is good the matter is being handled out of court.
> We must explore alternative dispute resolution mechanisms as a country that
> upholds multistakeholder principles. Spectrum as a resource should be
> availed for all citizens affordably, the Citizen must come first after
> which financial considerations can follow.
>
> Thank you
>
> Best Regards
>
> On Tue, Jan 25, 2022 at 9:22 AM Hezron Gikanga via KICTANet <
> kictanet at lists.kictanet.or.ke> wrote:
>
>> Ali & everyone else, thanks for the insights, and illuminating questions.
>>
>> My perspective below (+disclosures).
>>
>> Hez Gikang’a
>>
>>
>>
>> *From: *KICTANet <kictanet-bounces+hezron.gikanga=
>> thearcrayon.com at lists.kictanet.or.ke> on behalf of Ali Hussein via
>> KICTANet <kictanet at lists.kictanet.or.ke>
>> *Reply to: *Kenya's premier ICT Policy engagement platform <
>> kictanet at lists.kictanet.or.ke>
>> *Date: *Tuesday, 25 January 2022 at 08:11
>> *To: *Hezron Gikanga <Hezron.Gikanga at thearcrayon.com>
>> *Cc: *Ali Hussein <ali at hussein.me.ke>
>> *Subject: *Re: [kictanet] Safaricom battling pricing power with CA
>>
>>
>>
>> Kivuva and listers
>>
>>
>>
>> This is a very interesting case and could probably serve as a case study
>> worldwide. At this point in time I have more questions than answers:-
>>
>>
>>
>> 1. The Telco sector is an interesting one. Where do we draw the line
>> between Market Power, abuse of Market Power, Free Markets, centralized
>> control of power by Regulators? I can go on and on. *(there are several
>> studiesconducted  on the state of competitiveness in the industry over the
>> last decade plus, across different market segments, and when I was at
>> Airtel Africa a decade ago, this is one of the ‘internecine wars’ we fought
>> – both against the Regulator CA (whom I firmly believe isn’t fair), and
>> against the dominant player then. A groundbreaking Analysys Mason  report
>> back then was edited to soften some of the findings, and so nothing was
>> (effectively done) to rein some of the predatory and abusive practices (in
>> the name of GoK-ownership and ‘free/fair competition). There are also
>> comparative studies from other markets, tests, and models to go by..…I
>> doubt that there was goodwill/political willpower to effect some of the
>> changes..case in point is that several draft pieces of
>> legislation/amendments have been brought by individual legislators for a
>> ‘market-correction’..they haven’t gone far..will Ezra Chiloba et al succeed
>> now? Time wll tell..*
>>
>>
>>
>> 2. I can't help but wonder whether the current regulatory environment is
>> fit for purpose and whether the Telcos themselves are stuck in the '80s and
>> the regulator with them? Good question. *Refer to above. And the
>> question of independence of the Regulators (not just CA and CAK) from undue
>> political influence & fatalistic nationalistic tendencies….*Isn't it
>> time to take into consideration that the cheese is moving or has moved and
>> that VOIP-type services have eaten into the traditional voice market and
>> these guys continue to fight for what's remaining of the market? *Yes,
>> re the market segments looked at, and the inevitable nature of the
>> evolution/march of the tech revolution*…Has a study been done on what
>> percentage of the voice market is going to VOIP? *Do the technocrats in
>> the Regulatory space have requisite skillsets and motivation to grasp the
>> business models, workings of the industry, and import of their
>> determinations? For the sake of argument, revisit the debate on distributed
>> ledgers/block-chain….*
>>
>>
>>
>> 3. Are we fighting the wrong war? *Maybe. Reframe this to focus on the
>> benefits for the consumer, and industry, if we are to truly be the ‘silicon
>> savanna’ that we aspire to*
>>
>>
>>
>> 4. Last but not least how do we as a country reason out without going to
>> court? *Alternative Dispute Resolution (ADR) works, but where all
>> parties have faith in both the dispute resolution process/mechanisms, the
>> competency and ‘agnosticism’ of the adjudicators and in the enforcement of
>> the decisions reached. Without that the courts remain the only viable
>> option for aggrieved parties (at the risk of falling out of favor with the
>> Regulators et al..)*
>>
>>
>>
>> My two cowrie shells.
>>
>>
>>
>> Regards
>>
>>
>>
>> *Ali Hussein*
>>
>> Fintech | Digital Transformation
>>
>>
>>
>> Tel: +254 713 601113
>>
>> Twitter: @AliHKassim
>>
>> Skype: abu-jomo
>>
>> LinkedIn: http://ke.linkedin.com/in/alihkassim
>>
>>
>>
>>
>>
>>
>> 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 Mon, Jan 24, 2022 at 9:20 PM Mwendwa Kivuva via KICTANet <
>> kictanet at lists.kictanet.or.ke> wrote:
>>
>> Safaricom has a huge pricing power in voice services, making it difficult
>> for rivals Airtel Kenya and Telkom Kenya to compete with it, the
>> Communications Authority of Kenya (CA) has said.
>>
>>
>>
>> The regulator made the disclosure in its response to a case filed by
>> Safaricom at the Communications And Multimedia Appeals Tribunal seeking to
>> stop CA from cutting the mobile termination rate (MTR) per minute to Sh0.12
>> from Sh0.99.
>>
>>
>>
>> MTRs are the charges levied by a mobile service provider on other
>> telecommunications service providers for terminating calls on its network.
>>
>>
>>
>> Safaricom argues that the reduction of the charge, which was to take
>> effect at the start of this year, ignores the cost of doing business in the
>> telecommunications industry.
>>
>>
>>
>> The regulator responded by stating that the leading telco has the lowest
>> cost of operations, allowing it to run promotions at prices below the MTR
>> and which its rivals are not in a position to match.
>>
>>
>>
>> Safaricom’s leading market share has seen it charge its rivals more than
>> it pays out to them, leaving it in a net profitable position.
>>
>>
>>
>> More ...
>> https://www.businessdailyafrica.com/bd/corporate/companies/safaricom-pricing-power-revealed-in-tariff-battle-3691550
>>
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>>
>> KICTANet is a multi-stakeholder Think Tank for people and institutions
>> interested and involved in ICT policy and regulation. KICTANet is a
>> catalyst for reform in the Information and Communication Technology sector.
>> Its work is guided by four pillars of Policy Advocacy, Capacity Building,
>> Research, and Stakeholder Engagement.
>>
>> 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.
>>
>> KICTANet - The Power of Communities, is Kenya's premier ICT policy
>> engagement platform.
>>
>
>
> --
> Barrack O. Otieno
> +254721325277
> +254733206359
> Skype: barrack.otieno
> PGP ID: 0x2611D86A
>
>
>
>
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>
>
> KICTANet is a multi-stakeholder Think Tank for people and institutions
> interested and involved in ICT policy and regulation. KICTANet is a
> catalyst for reform in the Information and Communication Technology sector.
> Its work is guided by four pillars of Policy Advocacy, Capacity Building,
> Research, and Stakeholder Engagement.
>
> 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.
>
> KICTANet - The Power of Communities, is Kenya's premier ICT policy
> engagement platform.
>
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