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<div dir="ltr"><font color="#000000">True, regulations would be to guard against anti-competitive behaviour more so for an operator with dominant market power....but not to curtail their lead. </font></div>
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<div dir="ltr"><font color="#000000">If my memory serves, Telkom South Africa was slapped with a huge fine (USD 500 million!!!) when they lost a case in which a research group provided empirical evidence to the supreme court that their prices were prohibitively
high (over exploiting consumers) and that they exhibited anti-competitive behaviour. Would this happen in Kenya? Read more about the judgment<br>
<a href="http://www.supremecourtofappeal.gov.za/judgments/judgem_sca_2009.html" target="_blank">http://www.supremecourtofappeal.gov.za/judgments/judgem_sca_2009.html</a><br>
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A short synopsis can be found on LIRNE Asia's blog: <br>
<a href="http://lirneasia.net/2009/11/south-african-appeal-court-affirms-role-of-independent-think-tanks/" target="_blank">http://lirneasia.net/2009/11/south-african-appeal-court-affirms-role-of-independent-think-tanks/</a><br>
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<div dir="ltr">For the case of Kenya, prices remain artificially high!. While there is semblance of competition (i.e. 4 players in the market), the reality is that there's no real competitition as subscribers are stuck with their provider of choice for social
reasons (most of your friends and associates are on the same network) so irrespective of the prices charged, the quality of service etc...you're "imprisoned' within that network. This therefore does not push the boundaries of "Quality of service"; "competitive
prices"; consumer choice etc.</div>
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<div dir="ltr">We have market failure - how do we unlock this?</div>
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<div dir="ltr">There was a recent debate on KICTANT about number portability as a possible way out...we however need to learn from those who have tried it to implement it in ways that it will make a difference, but I think it might possibly be one of the practical
solutions to consider coupled with educating the masses and taking into consideration social practices and preferences etc. We must try something to get out of this regime of incredibly high prices!</div>
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<div dir="ltr">Can we hear from the regulator what they have in mind to deal with high prices, poor quality of service in this country!</div>
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<div dir="ltr">Edith</div>
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<p class="MsoNormal" style="MARGIN: 0cm 0cm 0pt" align="left"><span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Arial','sans-serif'">_________________</span></p>
<p class="MsoNormal" style="MARGIN: 0cm 0cm 0pt" align="left"><span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Arial','sans-serif'">Edith Ofwona Adera</span></p>
<p class="MsoNormal" style="MARGIN: 0cm 0cm 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Arial','sans-serif'">Senior Program Specilaist</span></p>
<p class="MsoNormal" style="MARGIN: 0cm 0cm 0pt"><span lang="FR-CA" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Arial','sans-serif'">International Development Research Centre | Centre de recherches pour le d�veloppement international</span></p>
<p class="MsoNormal" style="MARGIN: 0cm 0cm 0pt"><span lang="FR-CA" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Arial','sans-serif'">+254- 20- 2713160 ext 3406 or +1-613-696-3406 |
</span><span lang="FR-CA" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Arial','sans-serif'"><a href="mailto:+1-613-696-3406eadera@idrc.or.ke">eadera@idrc.or.ke</a> | </span><span lang="FR-CA" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Arial','sans-serif'"><a href="http://www.idrc.ca/" target="_blank">www.idrc.ca</a>
| <a href="http://www.crdi.ca/" target="_blank">www.crdi.ca</a></span></p>
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<font face="Tahoma" size="2"><b>From:</b> Wamuyu Gatheru [wamuyulearn@yahoo.co.uk]<br>
<b>Sent:</b> 05 May 2010 10:39<br>
<b>To:</b> Edith Adera<br>
<b>Cc:</b> KICTAnet ICT Policy Discussions; ke-users<br>
<b>Subject:</b> Re: [kictanet] CCK vs Safaricom?- and now Safcom vs the Rest?<br>
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<p>This morning I learnt a few things from M Joseph while interviewing with KISS FM. a) that Safaricom was not the first in the mobilie phone market b) according to many subscribers who called into the show, Safaricom is also an expensive service.</p>
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<p>For those who didnt listen in, M Joseph claimed that the monopoly regulations should be about abuse of monopoly rather than holding the market leader back just because they lead.</p>
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<p>If Safaricom is expensive and still leads, then the price management mechanism proposed in the regulations should not matter. Unless ofcourse their competition can lower their prices significantly while Safaricom is stuck negotiating similar prices with
the CCK for three months (as the regulations propose).</p>
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<p>Personally, if Safaricom can keep us talking even in peak times, get the Customer Care service trully accessible, improve the 3G service to match its high cost, I would prefer that they work in an unfettered manner. Like many, am a shareholder too. I also
learnt that one of their competitors once said that introducing the Blackberry would be unworthwhile in a developing country! We need companies who respect the country and this market.</p>
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<p>regards, Wamuyu</p>
<p>P/S Is the govt being inconsistent on monopoly? Why are the EA Breweries allowed to get away with monopoly decade after decade?
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