[kictanet] Safaricom battling pricing power with CA

Barrack Otieno otieno.barrack at gmail.com
Tue Feb 1 11:45:51 EAT 2022


Many thanks James for saving my skin. @Ali Hussein <ahussein at kictanet.or.ke>
i fully agree with you on the Simcard issue. Another small matter is the
issue of lines being deleted after a few days because they have not been
topped up. Can someone educate me on the rationale behind this issue,
doesn't it contravene consumer rights?


Regards

On Tue, Feb 1, 2022 at 9:22 AM James Mbugua via KICTANet <
kictanet at lists.kictanet.or.ke> wrote:

> 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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>>>>
>>>>
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>>>> interested and involved in ICT policy and regulation. KICTANet is a
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>>>> [image: Image removed by sender.]
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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
>>>
>>>
>>>
>>>
>>> _______________________________________________
>>> KICTANet mailing list
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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.
>>
> _______________________________________________
> KICTANet mailing list
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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.
>


-- 
Barrack O. Otieno
+254721325277
+254733206359
Skype: barrack.otieno
PGP ID: 0x2611D86A
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