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<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>Eric:<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>I am for genuine arbitration where parties
cannot resolve issues but not for misusing the CCK when a parties cannot agree
on a commercial arrangement. This is not a regulatory issue but a commercial
one.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>Regards,<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<div>
<p class=MsoNormal><font size=2 color=navy face="Times New Roman"><span
style='font-size:10.0pt;color:navy'>Michael<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=navy face="Times New Roman"><span
style='font-size:12.0pt;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><i><font size=2 color=navy face="Times New Roman"><span
style='font-size:10.0pt;color:navy;font-style:italic'>CEO<o:p></o:p></span></font></i></p>
<p class=MsoNormal><i><font size=2 color=navy face="Times New Roman"><span
style='font-size:10.0pt;color:navy;font-style:italic'>Safaricom Limited</span></font></i><font
color=navy><span style='color:navy'><o:p></o:p></span></font></p>
</div>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<div>
<div class=MsoNormal align=center style='text-align:center'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>
<hr size=2 width="100%" align=center tabindex=-1>
</span></font></div>
<p class=MsoNormal><b><font size=2 face=Tahoma><span style='font-size:10.0pt;
font-family:Tahoma;font-weight:bold'>From:</span></font></b><font size=2
face=Tahoma><span style='font-size:10.0pt;font-family:Tahoma'>
kictanet-bounces+mjoseph=safaricom.co.ke@lists.kictanet.or.ke
[mailto:kictanet-bounces+mjoseph=safaricom.co.ke@lists.kictanet.or.ke] <b><span
style='font-weight:bold'>On Behalf Of </span></b>Eric Osiakwan<br>
<b><span style='font-weight:bold'>Sent:</span></b> Monday, October 22, 2007
2:40 PM<br>
<b><span style='font-weight:bold'>To:</span></b> Michael Joseph<br>
<b><span style='font-weight:bold'>Cc:</span></b> APC - Private list for use by
EASSY Workshop Participants; KICTAnet ICT Policy Discussions<br>
<b><span style='font-weight:bold'>Subject:</span></b> Re: [kictanet] The tables
are turned</span></font><o:p></o:p></p>
</div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>Micheal,<o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>The intent of my submission is also not on the media one sidedness or
if we got the full story or not.<o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>Am alluding to the trend that our regulators are becoming a good
mediation point when commercial elements do not work like what you allude to
and thats a good development for the general commercial enterprise except you
not for that?<o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>Eric here<o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
</div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>On 22 Oct 2007, at 16:53, Michael Joseph wrote:<o:p></o:p></span></font></p>
</div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><br>
<br>
<o:p></o:p></span></font></p>
<div>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span
class=apple-style-span><O:SMARTTAGTYPE namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="Street"><O:SMARTTAGTYPE namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="address"><O:SMARTTAGTYPE namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="country-region"><O:SMARTTAGTYPE namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="place"><font
size=2 color=navy face=Arial><span style='font-size:10.0pt;font-family:Arial;
color:navy'><span style='border-spacing: 0px 0px;text-align:auto;-khtml-text-decorations-in-effect: none;
-apple-text-size-adjust: auto;orphans: 2;widows: 2;word-spacing:0px'>What you
have not mentioned whether the complaint had any merit and whether the Parties
could not have resolved it between themselves rather than relying on the CCK to
mediate every commercial dispute. There is much more to this than just the
one-sided view quoted by the media but we have chosen not to try to resolve our
disputes through the media.<O:P style="color: rgb(0, 0, 128); font-family: Arial; font-size: 13.3333px; "></O:P></span></font></span><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span
class=apple-style-span><O:P style="color: rgb(0, 0, 128); font-family: Arial; font-size: 13.3333px; "><font
size=2 color=navy face=Arial><span style='font-size:10.0pt;font-family:Arial;
color:navy'> </O:P></span></font></span><font color=black><span
style='color:black'><o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span
class=apple-style-span><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:navy'>Regards<O:P style="color: rgb(0, 0, 128); font-family: Arial; font-size: 13.3333px; "></O:P></span></font></span><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span
class=apple-style-span><O:P style="color: rgb(0, 0, 128); font-family: Arial; font-size: 13.3333px; "><font
size=2 color=navy face=Arial><span style='font-size:10.0pt;font-family:Arial;
color:navy'> </O:P></span></font></span><font color=black><span
style='color:black'><o:p></o:p></span></font></p>
<div>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span
class=apple-style-span><font size=2 color=navy face="Times New Roman"><span
style='font-size:10.0pt;color:navy'>Michael<O:P style="color: rgb(0, 0, 128); font-family: Times New Roman; font-size: 13.3333px; "></O:P></span></font></span><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span
class=apple-style-span><O:P style="color: rgb(0, 0, 128); font-family: Times New Roman; font-size: 16px; "><font
size=3 color=navy face="Times New Roman"><span style='font-size:12.0pt;
color:navy'> </O:P></span></font></span><font color=black><span
style='color:black'><o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span
class=apple-style-span><i><font size=2 color=navy face="Times New Roman"><span
style='font-size:10.0pt;color:navy;font-style:italic'>CEO<O:P style="color: rgb(0, 0, 128); font-family: Times New Roman; font-size: 13.3333px; font-style: italic; "></O:P></span></font></i></span><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span
class=apple-style-span><i><font size=2 color=navy face="Times New Roman"><span
style='font-size:10.0pt;color:navy;font-style:italic'>Safaricom Limited</span></font></i></span><font
color=black><span style='color:black'><O:P style="color: rgb(0, 0, 128); font-family: Times New Roman; font-size: 16px; "></O:P><o:p></o:p></span></font></p>
</div>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span
class=apple-style-span><O:P style="color: rgb(0, 0, 128); font-family: Arial; font-size: 13.3333px; "><font
size=2 color=navy face=Arial><span style='font-size:10.0pt;font-family:Arial;
color:navy'> </O:P></span></font></span><font color=black><span
style='color:black'><o:p></o:p></span></font></p>
<div>
<div class=MsoNormal align=center style='text-align:center'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt;color:black'>
<hr size=2 width="100%" align=center tabindex=-1>
</span></font></div>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span
class=apple-style-span><b><font size=2 color=black face=Tahoma><span
style='font-size:10.0pt;font-family:Tahoma;color:black;font-weight:bold'>From:</span></font></b></span><span
class=apple-style-span><font size=2 color=black face=Tahoma><span
style='font-size:10.0pt;font-family:Tahoma;color:black'>
kictanet-bounces+mjoseph=safaricom.co.ke@lists.kictanet.or.ke [<a
href="mailto:kictanet-bounces">mailto:kictanet-bounces</a>+mjoseph=<a
href="mailto:safaricom.co.ke@lists.kictanet.or.ke">safaricom.co.ke@lists.kictanet.or.ke</a>]
<b><span style='font-weight:bold'>On Behalf Of </span></b>Eric Osiakwan</span></font></span><font
size=2 color=black face=Tahoma><span style='font-size:10.0pt;font-family:Tahoma;
color:black'><br>
<span class=apple-style-span><b><span style='font-weight:bold'>Sent:</span></b>
Sunday, October 21, 2007 12:27 AM</span><br>
<span class=apple-style-span><b><span style='font-weight:bold'>To:</span></b>
Michael Joseph</span><br>
<span class=apple-style-span><b><span style='font-weight:bold'>Cc:</span></b>
APC - Private list for use by EASSY Workshop Participants; KICTAnet ICT Policy
Discussions</span><br>
<span class=apple-style-span><b><span style='font-weight:bold'>Subject:</span></b>
[kictanet] The tables are turned</span></span></font><O:P style="font-family: Times New Roman; font-size: 16px; "></O:P><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
</div>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span
class=apple-style-span><O:P style="font-family: Times New Roman; font-size: 16px; "><font
size=3 color=black face="Times New Roman"><span style='font-size:12.0pt;
color:black'> </O:P></span></font></span><font color=black><span
style='color:black'><o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span
class=apple-style-span><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>Dear All,<O:P style="font-family: Times New Roman; font-size: 16px; "></O:P></span></font></span><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
<div>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span
class=apple-style-span><O:P style="font-family: Times New Roman; font-size: 16px; "><font
size=3 color=black face="Times New Roman"><span style='font-size:12.0pt;
color:black'> </O:P></span></font></span><font color=black><span
style='color:black'><o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span
class=apple-style-span><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>We are really living in interesting times
especially in the ICT industry because a few years ago, it was the mobile
operators and ISPs who would be knocking on the doors of the regulator
complaining and sometimes weeping at the anti-competitive practices of the
imcumbent PTT towards them.<O:P style="font-family: Times New Roman; font-size: 16px; "></O:P></span></font></span><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span
class=apple-style-span><O:P style="font-family: Times New Roman; font-size: 16px; "><font
size=3 color=black face="Times New Roman"><span style='font-size:12.0pt;
color:black'> </O:P></span></font></span><font color=black><span
style='color:black'><o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span
class=apple-style-span><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>Today the tables have turned and in <ST1:COUNTRY-REGION u1:st="on"><st1:country-region
w:st="on">Kenya</ST1:COUNTRY-REGION></st1:country-region> as per the story
below, Telkom <ST1:COUNTRY-REGION u1:st="on"><ST1:PLACE u1:st="on"><st1:country-region
w:st="on"><st1:place w:st="on">Kenya</ST1:PLACE></ST1:COUNTRY-REGION></st1:place></st1:country-region>
is rather asking CCK to put Safaricom in check because they are acting
anti-competitively on the SMS platform against their CDMA operation. Five years
ago, this would have being an "incorrect prophesy" but it has happen
sooner than all would have expected. <O:P style="font-family: Times New Roman; font-size: 16px; "></O:P></span></font></span><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span
class=apple-style-span><O:P style="font-family: Times New Roman; font-size: 16px; "><font
size=3 color=black face="Times New Roman"><span style='font-size:12.0pt;
color:black'> </O:P></span></font></span><font color=black><span
style='color:black'><o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span
class=apple-style-span><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>What is more interesting is the fact that
Safaricom is 60% owned by Telkom Kenya which is fully owned by government that
means that the mobile operators have become so powerful that the combined years
of PTT operation and their political forces cannot turn the tables except the
mediation of the regulator. This confirms Russell Southwood's recent story of
the emergence of the mobile operators as the new incumbents of our time. <O:P style="font-family: Times New Roman; font-size: 16px; "></O:P></span></font></span><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span
class=apple-style-span><O:P style="font-family: Times New Roman; font-size: 16px; "><font
size=3 color=black face="Times New Roman"><span style='font-size:12.0pt;
color:black'> </O:P></span></font></span><font color=black><span
style='color:black'><o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span
class=apple-style-span><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>May be one good thing is the fact that the
mobile incumbents are so powerful that not a combiantion of PTT operation and
political forces can impact them except the court of the regulator so the
political leadership in some of our countries would now see reason to
strengthen their regulators and make them independent enough to be the pivot to
balance the weight of the mobile operators against their "cash cow"
incumbents. <O:P style="font-family: Times New Roman; font-size: 16px; "></O:P></span></font></span><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span
class=apple-style-span><O:P style="font-family: Times New Roman; font-size: 16px; "><font
size=3 color=black face="Times New Roman"><span style='font-size:12.0pt;
color:black'> </O:P></span></font></span><font color=black><span
style='color:black'><o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span
class=apple-style-span><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>Eric here<O:P style="font-family: Times New Roman; font-size: 16px; "></O:P></span></font></span><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span
class=apple-style-span><O:P style="font-family: Times New Roman; font-size: 16px; "><font
size=3 color=black face="Times New Roman"><span style='font-size:12.0pt;
color:black'> </O:P></span></font></span><font color=black><span
style='color:black'><o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span
class=apple-style-span><O:P style="font-family: Times New Roman; font-size: 16px; "><font
size=3 color=black face="Times New Roman"><span style='font-size:12.0pt;
color:black'> </O:P></span></font></span><font color=black><span
style='color:black'><o:p></o:p></span></font></p>
</div>
<p style='mso-margin-top-alt:0mm;margin-right:0mm;margin-bottom:.75pt;
margin-left:0mm'><span class=apple-style-span><b><font size=2 color="#00072f"
face=Verdana><span style='font-size:10.5pt;font-family:Verdana;color:#00072F;
font-weight:bold'>Telkom Lodges SMS Petition Against Safaricom in <ST1:COUNTRY-REGION u1:st="on"><ST1:PLACE u1:st="on"><st1:country-region
w:st="on"><st1:place w:st="on">Kenya</ST1:PLACE></ST1:COUNTRY-REGION></st1:place></st1:country-region></span></font></b></span><O:P style="font-family: Times New Roman; font-size: 16px; "></O:P><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
<p style='mso-margin-top-alt:0mm;margin-right:0mm;margin-bottom:3.75pt;
margin-left:0mm;line-height:14.25pt'><span class=apple-style-span><font size=3
color="#00072f" face=Verdana><span style='font-size:12.0pt;font-family:Verdana;
color:#00072F'>In the fight for control of <ST1:COUNTRY-REGION u1:st="on"><ST1:PLACE u1:st="on"><st1:country-region
w:st="on"><st1:place w:st="on">Kenya</ST1:PLACE></ST1:COUNTRY-REGION></st1:place></st1:country-region>'s
lucrative telecoms industry, competition is becoming a useful weapon in the
hands of rival firms -especially those that need to play the catch-up game to
remain in the race.</span></font></span><O:P style="font-family: Times New Roman; font-size: 16px; line-height: 19px; "></O:P><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
<p style='mso-margin-top-alt:0mm;margin-right:0mm;margin-bottom:3.75pt;
margin-left:0mm;line-height:14.25pt'><span class=apple-style-span><font size=3
color="#00072f" face=Verdana><span style='font-size:12.0pt;font-family:Verdana;
color:#00072F'>This market share war has become so intense that players are
breaking all boundaries in the corporate rulebook.</span></font></span><O:P style="font-family: Times New Roman; font-size: 16px; line-height: 19px; "></O:P><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
<p style='mso-margin-top-alt:0mm;margin-right:0mm;margin-bottom:3.75pt;
margin-left:0mm;line-height:14.25pt'><span class=apple-style-span><font size=3
color="#00072f" face=Verdana><span style='font-size:12.0pt;font-family:Verdana;
color:#00072F'>Five months ago, mobile phone service provider Celtel took its
bigger and only rival Safaricom before the market regulator, accusing it of
playing unfairly in the market to the disadvantage of the consumer.</span></font></span><O:P style="font-family: Times New Roman; font-size: 16px; line-height: 19px; "></O:P><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
<p style='mso-margin-top-alt:0mm;margin-right:0mm;margin-bottom:3.75pt;
margin-left:0mm;line-height:14.25pt'><span class=apple-style-span><font size=3
color="#00072f" face=Verdana><span style='font-size:12.0pt;font-family:Verdana;
color:#00072F'>Now it is the national operator Telkom's turn to lodge a
landmark complaint against its subsidiary -Safaricom.</span></font></span><O:P style="font-family: Times New Roman; font-size: 16px; line-height: 19px; "></O:P><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
<p style='mso-margin-top-alt:0mm;margin-right:0mm;margin-bottom:3.75pt;
margin-left:0mm;line-height:14.25pt'><span class=apple-style-span><font size=3
color="#00072f" face=Verdana><span style='font-size:12.0pt;font-family:Verdana;
color:#00072F'>In its letter to Mr John Waweru, the Communications Commission
of Kenya director general, Telkom <ST1:COUNTRY-REGION u1:st="on"><ST1:PLACE u1:st="on"><st1:country-region
w:st="on"><st1:place w:st="on">Kenya</ST1:PLACE></ST1:COUNTRY-REGION></st1:place></st1:country-region>
is accusing Safaricom of practising anti-competitive behaviour in the market
-especially in the Short Messages Services (SMS) segment of the business.</span></font></span><O:P style="font-family: Times New Roman; font-size: 16px; line-height: 19px; "></O:P><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
<p style='mso-margin-top-alt:0mm;margin-right:0mm;margin-bottom:3.75pt;
margin-left:0mm;line-height:14.25pt'><span class=apple-style-span><font size=3
color="#00072f" face=Verdana><span style='font-size:12.0pt;font-family:Verdana;
color:#00072F'>Telkom says Safaricom has been blocking the exchange of SMSs
between the two networks, thereby denying its customers access to key services
that the national operator is offering such as the one that enables them to
check their voter registration details with the Electoral Commission of Kenya
(ECK).</span></font></span><O:P style="font-family: Times New Roman; font-size: 16px; line-height: 19px; "></O:P><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
<p style='mso-margin-top-alt:0mm;margin-right:0mm;margin-bottom:3.75pt;
margin-left:0mm;line-height:14.25pt'><span class=apple-style-span><font size=3
color="#00072f" face=Verdana><span style='font-size:12.0pt;font-family:Verdana;
color:#00072F'>"Telkom <ST1:COUNTRY-REGION u1:st="on"><ST1:PLACE u1:st="on"><st1:country-region
w:st="on"><st1:place w:st="on">Kenya</ST1:PLACE></ST1:COUNTRY-REGION></st1:place></st1:country-region>
is concerned that Safaricom is engaging in anti-competitive behaviour and in
essence abusing its dominant market position by introducing barriers to new
entrants targeting SMS market segment," Telkom says.</span></font></span><O:P style="font-family: Times New Roman; font-size: 16px; line-height: 19px; "></O:P><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
<p style='mso-margin-top-alt:0mm;margin-right:0mm;margin-bottom:3.75pt;
margin-left:0mm;line-height:14.25pt'><span class=apple-style-span><font size=3
color="#00072f" face=Verdana><span style='font-size:12.0pt;font-family:Verdana;
color:#00072F'>Public attention was first drawn to the matter after some
Safaricom subscribers complained that Safaricom was charging them for
undelivered SMSs to Telkom <ST1:COUNTRY-REGION u1:st="on"><ST1:PLACE u1:st="on"><st1:country-region
w:st="on"><st1:place w:st="on">Kenya</ST1:PLACE></ST1:COUNTRY-REGION></st1:place></st1:country-region>'s
Wireless network. SMSs to Telkom network got an automatic reply indicating that
delivery had failed yet the consumers were being billed.</span></font></span><O:P style="font-family: Times New Roman; font-size: 16px; line-height: 19px; "></O:P><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
<p style='mso-margin-top-alt:0mm;margin-right:0mm;margin-bottom:3.75pt;
margin-left:0mm;line-height:14.25pt'><span class=apple-style-span><font size=3
color="#00072f" face=Verdana><span style='font-size:12.0pt;font-family:Verdana;
color:#00072F'>Safaricom CEO Michael Joseph acknowledged that some of its
subscribers had sent messages to Telkom <ST1:COUNTRY-REGION u1:st="on"><ST1:PLACE u1:st="on"><st1:country-region
w:st="on"><st1:place w:st="on">Kenya</ST1:PLACE></ST1:COUNTRY-REGION></st1:place></st1:country-region>
during the test period and may have been charged erroneously.</span></font></span><O:P style="font-family: Times New Roman; font-size: 16px; line-height: 19px; "></O:P><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
<p style='mso-margin-top-alt:0mm;margin-right:0mm;margin-bottom:3.75pt;
margin-left:0mm;line-height:14.25pt'><span class=apple-style-span><font size=3
color="#00072f" face=Verdana><span style='font-size:12.0pt;font-family:Verdana;
color:#00072F'>He said that although the company was not billing SMSs to Telkom
Wireless network between August 13 and August 27, some of its customers may
have been billed. Safaricom later agreed to refund the affected subscribers.</span></font></span><O:P style="font-family: Times New Roman; font-size: 16px; line-height: 19px; "></O:P><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
<p style='mso-margin-top-alt:0mm;margin-right:0mm;margin-bottom:3.75pt;
margin-left:0mm;line-height:14.25pt'><span class=apple-style-span><font size=3
color="#00072f" face=Verdana><span style='font-size:12.0pt;font-family:Verdana;
color:#00072F'>Telkom says that on August 16, the two interconnectivity
negotiating parties met and agreed on interconnection rate and a technical
testing schedule.</span></font></span><O:P style="font-family: Times New Roman; font-size: 16px; line-height: 19px; "></O:P><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
<p style='mso-margin-top-alt:0mm;margin-right:0mm;margin-bottom:3.75pt;
margin-left:0mm;line-height:14.25pt'><span class=apple-style-span><font size=3
color="#00072f" face=Verdana><span style='font-size:12.0pt;font-family:Verdana;
color:#00072F'>During this period the parties also exchanged SMS test templates
to be adopted in the tests. Safaricom has however not cooperated in
facilitating the process, making it unable to commercialise the service.</span></font></span><O:P style="font-family: Times New Roman; font-size: 16px; line-height: 19px; "></O:P><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
<p style='mso-margin-top-alt:0mm;margin-right:0mm;margin-bottom:3.75pt;
margin-left:0mm;line-height:14.25pt'><span class=apple-style-span><font size=3
color="#00072f" face=Verdana><span style='font-size:12.0pt;font-family:Verdana;
color:#00072F'>The matter seems to have reached fever pitch after Safaricom
introduced a voter registry query service similar to the one Telkom <ST1:COUNTRY-REGION u1:st="on"><ST1:PLACE u1:st="on"><st1:country-region
w:st="on"><st1:place w:st="on">Kenya</ST1:PLACE></ST1:COUNTRY-REGION></st1:place></st1:country-region>
had rolled out after it won an ECK tender.</span></font></span><O:P style="font-family: Times New Roman; font-size: 16px; line-height: 19px; "></O:P><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
<p style='mso-margin-top-alt:0mm;margin-right:0mm;margin-bottom:3.75pt;
margin-left:0mm;line-height:14.25pt'><span class=apple-style-span><font size=3
color="#00072f" face=Verdana><span style='font-size:12.0pt;font-family:Verdana;
color:#00072F'>Telkom <ST1:COUNTRY-REGION u1:st="on"><ST1:PLACE u1:st="on"><st1:country-region
w:st="on"><st1:place w:st="on">Kenya</ST1:PLACE></ST1:COUNTRY-REGION></st1:place></st1:country-region>
is complaining that failure by Safaricom to activate the SMS service is
affecting its ability to use an innovative platform that delivers voter
registry query services by utilizing the 460 numeric to access the ECK database.</span></font></span><O:P style="font-family: Times New Roman; font-size: 16px; line-height: 19px; "></O:P><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
<p style='mso-margin-top-alt:0mm;margin-right:0mm;margin-bottom:3.75pt;
margin-left:0mm;line-height:14.25pt'><span class=apple-style-span><font size=3
color="#00072f" face=Verdana><span style='font-size:12.0pt;font-family:Verdana;
color:#00072F'>Telkom <ST1:COUNTRY-REGION u1:st="on"><ST1:PLACE u1:st="on"><st1:country-region
w:st="on"><st1:place w:st="on">Kenya</ST1:PLACE></ST1:COUNTRY-REGION></st1:place></st1:country-region>
says Safaricom acted maliciously in delaying to activate the SMS service only
to launch a similar service.</span></font></span><O:P style="font-family: Times New Roman; font-size: 16px; line-height: 19px; "></O:P><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
<p style='mso-margin-top-alt:0mm;margin-right:0mm;margin-bottom:3.75pt;
margin-left:0mm;line-height:14.25pt'><span class=apple-style-span><font size=3
color="#00072f" face=Verdana><span style='font-size:12.0pt;font-family:Verdana;
color:#00072F'>"We are perturbed that Safaricom, having not been involved
in the initial tender process is currently able to provide a similar services
using the 460 prefix. This is a totally unacceptable anti-competitive
behaviour," Telkom says.</span></font></span><O:P style="font-family: Times New Roman; font-size: 16px; line-height: 19px; "></O:P><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
<p style='mso-margin-top-alt:0mm;margin-right:0mm;margin-bottom:3.75pt;
margin-left:0mm;line-height:14.25pt'><span class=apple-style-span><font size=3
color="#00072f" face=Verdana><span style='font-size:12.0pt;font-family:Verdana;
color:#00072F'>Mr Joseph declined to comment on the matter saying it was
already before an arbiter.</span></font></span><O:P style="font-family: Times New Roman; font-size: 16px; line-height: 19px; "></O:P><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
<p style='mso-margin-top-alt:0mm;margin-right:0mm;margin-bottom:3.75pt;
margin-left:0mm;line-height:14.25pt'><span class=apple-style-span><font size=3
color="#00072f" face=Verdana><span style='font-size:12.0pt;font-family:Verdana;
color:#00072F'>Telkom <ST1:COUNTRY-REGION u1:st="on"><ST1:PLACE u1:st="on"><st1:country-region
w:st="on"><st1:place w:st="on">Kenya</ST1:PLACE></ST1:COUNTRY-REGION></st1:place></st1:country-region>
is the majority shareholder at Safaricom with a 60 per cent stake. It co-owns
the company with the <ST1:COUNTRY-REGION u1:st="on"><ST1:PLACE u1:st="on"><st1:country-region
w:st="on"><st1:place w:st="on">United Kingdom</ST1:PLACE></ST1:COUNTRY-REGION></st1:place></st1:country-region>'s
Vodafone Plc which has a 40 per cent stake in the firm.</span></font></span><font
color="#00072f" face=Verdana><span style='font-family:Verdana;color:#00072F'><br>
<span class=apple-style-span>(Source: Business Daily)</span></span></font><O:P style="font-family: Times New Roman; font-size: 16px; line-height: 19px; "></O:P><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
<div>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span
class=apple-style-span><O:P style="font-family: Times New Roman; font-size: 16px; "><font
size=3 color=black face="Times New Roman"><span style='font-size:12.0pt;
color:black'> </O:P></span></font></span><font color=black><span
style='color:black'><o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span
class=apple-style-span><O:P style="font-family: Times New Roman; font-size: 16px; "><font
size=3 color=black face="Times New Roman"><span style='font-size:12.0pt;
color:black'> </O:P></span></font></span><font color=black><span
style='color:black'><o:p></o:p></span></font></p>
<div><span style='border-spacing: 0px 0px;text-align:auto;-khtml-text-decorations-in-effect: none;
-apple-text-size-adjust: auto;orphans: 2;widows: 2;word-spacing:0px'><span
style='border-spacing: 0px 0px;text-align:auto;-khtml-text-decorations-in-effect: none;
-apple-text-size-adjust: auto;orphans: 2;widows: 2;word-spacing:0px'>
<div style='margin-left:15.0pt'>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><font
size=1 color=black face=Helvetica><span style='font-size:9.0pt;font-family:
Helvetica;color:black'><span style='border-spacing: 0px 0px;text-align:auto;
-khtml-text-decorations-in-effect: none;-apple-text-size-adjust: auto;
orphans: 2;widows: 2;word-spacing:0px'>Eric M.K Osiakwan<O:P></O:P></span></span></font><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
</div>
<div style='margin-left:15.0pt'>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><font
size=1 color=black face=Helvetica><span style='font-size:9.0pt;font-family:
Helvetica;color:black'>Executive Secretary<O:P></O:P></span></font><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
</div>
<div style='margin-left:15.0pt'>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><font
size=1 color=black face=Helvetica><span style='font-size:9.0pt;font-family:
Helvetica;color:black'>AfrISPA (<a href="http://www.afrispa.org"><span
class=apple-style-span><span style='-khtml-text-decorations-in-effect: underline'>www.afrispa.org</span></span></a>)<O:P></O:P></span></font><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
</div>
<div style='margin-left:15.0pt'>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><font
size=1 color=black face=Helvetica><span style='font-size:9.0pt;font-family:
Helvetica;color:black'>Tel: + 233.21.258800 ext 2031<O:P></O:P></span></font><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
</div>
<div style='margin-left:15.0pt'>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><font
size=1 color=black face=Helvetica><span style='font-size:9.0pt;font-family:
Helvetica;color:black'>Fax: + 233.21.258811<O:P></O:P></span></font><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
</div>
<div style='margin-left:15.0pt'>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><font
size=1 color=black face=Helvetica><span style='font-size:9.0pt;font-family:
Helvetica;color:black'>Cell: + 233.244.386792<O:P></O:P></span></font><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
</div>
<div style='margin-left:15.0pt'>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><font
size=1 color=black face=Helvetica><span style='font-size:9.0pt;font-family:
Helvetica;color:black'>Handle: eosiakwan<O:P></O:P></span></font><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
</div>
<div style='margin-left:15.0pt'>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><font
size=1 color=black face=Helvetica><span style='font-size:9.0pt;font-family:
Helvetica;color:black'>Snail Mail: Pmb 208, Accra-North<O:P></O:P></span></font><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
</div>
<div style='margin-left:15.0pt'>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><font
size=1 color=black face=Helvetica><span style='font-size:9.0pt;font-family:
Helvetica;color:black'>Office: BusyInternet -<span class=apple-converted-space> <ST1:STREET u1:st="on"><ST1:ADDRESS u1:st="on"></span><st1:Street
w:st="on"><st1:address w:st="on">42 Ring Road</ST1:ADDRESS></ST1:STREET></st1:address></st1:Street><span
class=apple-converted-space> </span>Central, Accra-North<O:P></O:P></span></font><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
</div>
<div style='margin-left:15.0pt'>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><font
size=1 color=black face=Helvetica><span style='font-size:9.0pt;font-family:
Helvetica;color:black'>Blog: <a href="http://blogs.law.harvard.edu/eric/"><span
class=apple-style-span><span style='-khtml-text-decorations-in-effect: underline'>http://blogs.law.harvard.edu/eric/</span></span></a><O:P></O:P></span></font><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
</div>
<div style='margin-left:15.0pt'>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><font
size=1 color=black face=Helvetica><span style='font-size:9.0pt;font-family:
Helvetica;color:black'>Slang: "Tomorrow Now"<O:P></O:P></span></font><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
</div>
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<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><font
size=1 color=black face=Helvetica><span style='font-size:9.0pt;font-family:
Helvetica;color:black'><O:P> </O:P></span></font><font color=black><span
style='color:black'><o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><font
size=1 color=black face=Helvetica><span style='font-size:9.0pt;font-family:
Helvetica;color:black'><O:P> </O:P></span></font><font color=black><span
style='color:black'><o:p></o:p></span></font></p>
</div>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><font
size=1 color=black face=Helvetica><span style='font-size:9.0pt;font-family:
Helvetica;color:black'><br>
<br>
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</span></font><font color=black><span style='color:black'><o:p></o:p></span></font></p>
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<O:P style="font-family: Times New Roman; font-size: 16px; "></O:P>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span
class=apple-style-span></span><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'></span><O:P style="font-family: Times New Roman; font-size: 16px; "> </O:P></span></font></span><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
</div>
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<div>
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color=black face=Arial><span lang=EN-GB style='font-size:10.0pt;font-family:
Arial;color:black'>
<hr size=2 width="100%" align=center>
</span></font></div>
<p class=MsoNormal><span class=apple-style-span><font size=2 color=black
face=Arial><span lang=EN-GB style='font-size:10.0pt;font-family:Arial;
color:black'>The information in this email and any attachments is confidential
and may be legally privileged. It is intended only for the use of the named
addressee.<O:P style="font-family: Arial; font-size: 13.3333px; "></O:P></span></font></span><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
</div>
<p class=MsoNormal style='text-align:justify'><span class=apple-style-span><font
size=2 color=black face=Arial><span lang=EN-GB style='font-size:10.0pt;
font-family:Arial;color:black'>Emails are susceptible to alteration and their
integrity cannot be guaranteed. Safaricom Limited does not accept legal
responsibility for the contents of this email if the same is found to have been
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style='border-spacing: 0px 0px;text-align:auto;-khtml-text-decorations-in-effect: none;
-apple-text-size-adjust: auto;orphans: 2;widows: 2;word-spacing:0px'>Eric M.K
Osiakwan<o:p></o:p></span></font></p>
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<p class=MsoNormal><font size=1 color=black face=Helvetica><span
style='font-size:9.0pt;font-family:Helvetica;color:black'>Blog: <a
href="http://blogs.law.harvard.edu/eric/">http://blogs.law.harvard.edu/eric/</a><o:p></o:p></span></font></p>
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