[kictanet] Safaricom battling pricing power with CA

Tue Feb 1 09:19:25 EAT 2022

I doubt you will get any Kenyans arguing against cheaper calling rates.
That is where public interest lies...

JG

On Tue, 1 Feb 2022, 06:54 Ali Hussein via KICTANet, <
kictanet at lists.kictanet.or.ke> wrote:

> @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.
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>>> KICTANet - The Power of Communities, is Kenya's premier ICT policy
>>> engagement platform.
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>>
>>
>> --
>> Barrack O. Otieno
>> +254721325277
>> +254733206359
>> Skype: barrack.otieno
>> PGP ID: 0x2611D86A
>>
>>
>>
>>
>> _______________________________________________
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>> Unsubscribe or change your options at
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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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>
> 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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