I think there are several interesting points here: <br><ul><li>Yes, a regulator should keep an eye on monopolistic and oligopolistic developments. But, as Michael Joseph said, dominance should only be penalised if abused, and in order to do so, this abuse needs to be defined in the regulations - which has not been done, he says, despite repeat reassurances given to him by both the Ministry of Information and the CCK (see <a href="http://www.ratio-magazine.com/201005052971/Kenya/Kenya-Safaricom-Willing-to-Sue-Against-New-Tariff-Regulations.html">http://www.ratio-magazine.com/201005052971/Kenya/Kenya-Safaricom-Willing-to-Sue-Against-New-Tariff-Regulations.html</a>)</li>
<li>Celtel/Zain clearly didn't start out to be a 'feeble player', nor were they a late entrant, as the figures I cited show. So is it fair to penalise Safaricom for Celtel's inability to retain market share and capitalise on having been in the market for more than a decade? <br>
</li><li>Orange: France Telecom bid around USD100m more for Telkom Kenya than their nearest competitor in the privatisation. Was that price justified? Nobody else seems to think so, not even France Telecom anymore, since they are now reportedly trying to get some or all of that money back. <br>
</li><li>Yu: Econet couldn't get going for ages because their local partner could raise their financial contribution. Was that a sensibly chosen local partner? <br></li></ul>Obviously it's not ideal for the market and customers to have such limited competition, but then a) the regulation lacks a crucial element, and b) the competition seem to have been quite adept at shooting themselves in the foot. Is it fair to punish Safaricom for that? <br>
<br>Andrea <br><br><div class="gmail_quote">On 7 May 2010 18:04, Pius Walela <span dir="ltr"><<a href="mailto:PWalela@strathmore.edu">PWalela@strathmore.edu</a>></span> wrote:<br><blockquote class="gmail_quote" style="border-left: 1px solid rgb(204, 204, 204); margin: 0pt 0pt 0pt 0.8ex; padding-left: 1ex;">
<div link="blue" vlink="purple" lang="EN-US">
<div>
<p class="MsoNormal">Recent� developments� in the mobile telephony� sector are� of concern�� . I� opine� that for a true� capitalist society to manifest the market� should be subject� to� forces� of demand and� supply to create conducive conditions�� for� the�
market to� thrive� and in extension to ensure its longevity. However� Oligopolistic �and monopolistic� tendencies �in the� market �ought� to be� constrained� to� cushion feeble �players and� potential� new entrants from eventual� or outright� failure, as�
such� regulation� is� essential� however�these regulations� have� to� be� moderated.</p>
<p class="MsoNormal"><span style="font-size: 11pt; color: rgb(31, 73, 125);">�</span></p>
<p class="MsoNormal"><span style="font-size: 11pt; color: rgb(31, 73, 125);">�</span></p>
<div style="border-style: solid none none; border-color: rgb(181, 196, 223) -moz-use-text-color -moz-use-text-color; border-width: 1pt medium medium; padding: 3pt 0in 0in;">
<p class="MsoNormal"><b><span style="font-size: 10pt;">From:</span></b><span style="font-size: 10pt;"> kictanet-bounces+pwalela=<a href="http://strathmore.edu" target="_blank">strathmore.edu</a>@<a href="http://lists.kictanet.or.ke" target="_blank">lists.kictanet.or.ke</a> [mailto:<a href="mailto:kictanet-bounces%2Bpwalela" target="_blank">kictanet-bounces+pwalela</a>=<a href="http://strathmore.edu" target="_blank">strathmore.edu</a>@<a href="http://lists.kictanet.or.ke" target="_blank">lists.kictanet.or.ke</a>]
<b>On Behalf Of </b>Andrea Bohnstedt<br>
<b>Sent:</b> Friday, May 07, 2010 5:57 PM<br>
<b>To:</b> Pius Walela<br>
<b>Cc:</b> KICTAnet ICT Policy Discussions<br>
<b>Subject:</b> {Disarmed} Re: [kictanet] Call for opinions - CCK vs Safaricom</span></p>
</div>
<p class="MsoNormal">�</p>
<p class="MsoNormal" style="margin-bottom: 12pt;">Amusing little factoid: <br>
<br>
In 2004, when Celtel acquired Kencell: <span style="color: black;" lang="EN-GB"><br>
'Kencell, with about 1.2 million subscribers, has recently lost market share to rival Safaricom, a joint venture of Kenya's state-owned Telkom Kenya and Britain's Vodafone. Safaricom's subscribers have grown to 1.8 million, increasing its share to 60% from
about 50%.</span><br>
<br>
So Celtel/Zain managed to work their way down from 50% to 14% or so over the past six years. Must have been quite a slippery playing field.
<br>
<br>
(<a href="http://www.regulateonline.org/2003/intelecon/2004/May/A-Kenya-040525.htm" target="_blank">http://www.regulateonline.org/2003/intelecon/2004/May/A-Kenya-040525.htm</a>)</p>
<div>
<p class="MsoNormal">On 7 May 2010 17:38, Walubengo J <<a href="mailto:jwalu@yahoo.com" target="_blank">jwalu@yahoo.com</a>> wrote:</p>
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<tbody>
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<td style="padding: 0in; font-style: inherit; font-variant: inherit; font-weight: inherit; font-size: inherit; line-height: inherit; font-size-adjust: inherit; font-stretch: inherit;" valign="top">
<p class="MsoNormal"><span style="font-family: "inherit","serif";">MM,<br>
<br>
this Kwame guy is an interesting read!. One amusing message I picked says that the regulator should be protecting consumers - not competitors ;-)<br>
<br>
..and from the "streets" some analyst said that Safcom may have exploited its dominance position; but that was in the beginning (ref: interconnection tariff wars with Kencell 6-8yrs ago). Currently, it will be a tall order to get evidence of the yet to be defined
"exploiting" dominance postion"<br>
<br>
walu.<br>
<br>
--- On <b>Fri, 5/7/10, muriuki mureithi <i><<a href="mailto:mureithi@summitstrategies.co.ke" target="_blank">mureithi@summitstrategies.co.ke</a>></i></b> wrote:</span></p>
<p class="MsoNormal" style="margin-bottom: 12pt;"><span style="font-family: "inherit","serif";"><br>
From: muriuki mureithi <<a href="mailto:mureithi@summitstrategies.co.ke" target="_blank">mureithi@summitstrategies.co.ke</a>><br>
Subject: Re: [kictanet] [ke-internetusers] {HIJACK} Call for opinions - CCK vs Safaricom<br>
To: <a href="mailto:jwalu@yahoo.com" target="_blank">jwalu@yahoo.com</a><br>
Cc: "'KICTAnet ICT Policy Discussions'" <<a href="mailto:kictanet@lists.kictanet.or.ke" target="_blank">kictanet@lists.kictanet.or.ke</a>>, "'ke-users'" <<a href="mailto:ke-internetusers@bdix.net" target="_blank">ke-internetusers@bdix.net</a>><br>
Date: Friday, May 7, 2010, 3:32 PM</span></p>
<div>
<div>
<p class="MsoNormal"><span style="font-size: 9pt; color: rgb(31, 73, 125);">Kui</span></p>
<p class="MsoNormal"><span style="font-size: 9pt; color: rgb(31, 73, 125);">For� a local context �from an economic perspective , read the attached
</span></p>
<p class="MsoNormal"><span style="font-size: 9pt; color: rgb(31, 73, 125);">Regards
</span></p>
<p class="MsoNormal"><span style="font-size: 9pt; color: rgb(31, 73, 125);">Muriuki Mureithi
</span></p>
<p class="MsoNormal"><span style="font-size: 9pt; color: rgb(31, 73, 125);">�</span></p>
<div style="border-style: solid none none; border-color: -moz-use-text-color; border-width: 1pt medium medium; padding: 3pt 0in 0in;">
<p class="MsoNormal"><b><span style="font-size: 10pt;">From:</span></b><span style="font-size: 10pt;"> kictanet-bounces+mureithi=<a href="http://summitstrategies.co.ke" target="_blank">summitstrategies.co.ke</a>@<a href="http://lists.kictanet.or.ke" target="_blank">lists.kictanet.or.ke</a>
[mailto:<a href="mailto:kictanet-bounces%2Bmureithi" target="_blank">kictanet-bounces+mureithi</a>=<a href="http://summitstrategies.co.ke" target="_blank">summitstrategies.co.ke</a>@<a href="http://lists.kictanet.or.ke" target="_blank">lists.kictanet.or.ke</a>]
<b>On Behalf Of </b>John Kariuki<br>
<b>Sent:</b> 07 May 2010 08:09<br>
<b>To:</b> <a href="mailto:mureithi@summitstrategies.co.ke" target="_blank">mureithi@summitstrategies.co.ke</a><br>
<b>Cc:</b> KICTAnet ICT Policy Discussions; ke-users<br>
<b>Subject:</b> Re: [kictanet] [ke-internetusers] {HIJACK} Call for opinions - CCK vs Safaricom</span></p>
</div>
<p class="MsoNormal">�</p>
<table border="0" cellpadding="0" cellspacing="0">
<tbody>
<tr>
<td style="padding: 0in;" valign="top">
<p class="MsoNormal">
Kui,<br>
<br>
For some background information� on Competition, Dominance,etc you could check on the following information resources which should be available on-line:<br>
<br>
1.Oftel, January 2000- The application of the Competition Act in Telecommunications Sector.<br>
<br>
2. INTUG - Anti-Competitive Conduct and Competition Policy in Telecommunications,ITU,Geneva 22 Nov.2002<br>
<br>
<a href="http://3.EU" target="_blank">3.EU</a> Directive 2002/19/EC 0f 7/3/2002 (Access Directive)<br>
<br>
4. European Court of Justice in " United Brands v. Commission(1978) ECR. 207<br>
<br>
5.Telecommunication Regulation Handbook(Module 5 - Competition Policy) by INFODEV,
<br>
<br>
<br>
Good� Luck,<br>
<br>
John Kariuki<br>
<br>
--- On <b>Thu, 6/5/10, Marie-Anne Kinyanjui <i><<a href="mailto:mkinyanjui@nation.co.ke" target="_blank">mkinyanjui@nation.co.ke</a>></i></b> wrote:</p>
<p class="MsoNormal" style="margin-bottom: 12pt;"><br>
From: Marie-Anne Kinyanjui <<a href="mailto:mkinyanjui@nation.co.ke" target="_blank">mkinyanjui@nation.co.ke</a>><br>
Subject: [ke-internetusers] {HIJACK} Call for opinions - CCK vs Safaricom<br>
To: "McTim" <<a href="mailto:dogwallah@gmail.com" target="_blank">dogwallah@gmail.com</a>><br>
Cc: "KICTAnet ICT Policy Discussions" <<a href="mailto:kictanet@lists.kictanet.or.ke" target="_blank">kictanet@lists.kictanet.or.ke</a>>, "ke-users" <<a href="mailto:ke-internetusers@bdix.net" target="_blank">ke-internetusers@bdix.net</a>><br>
Date: Thursday, 6 May, 2010, 8:47</p>
<div>
<p class="MsoNormal">
Is there anyone on the list with a firm grasp of the industry (and who is not directly involved :-) who is wiling to offer their objective views on this subject for publication in Business Daily?<br>
400-600 words please.<br>
<br>
Thanks.<br>
<br>
Kui Kinyanjui<br>
Business Daily<br>
<br>
-----Original Message-----<br>
From: kictanet-bounces+mkinyanjui=<a href="http://nation.co.ke" target="_blank">nation.co.ke</a>@<a href="http://lists.kictanet.or.ke" target="_blank">lists.kictanet.or.ke</a> [mailto:<a href="mailto:kictanet-bounces%2Bmkinyanjui" target="_blank">kictanet-bounces+mkinyanjui</a>=<a href="http://nation.co.ke" target="_blank">nation.co.ke</a>@<a href="http://lists.kictanet.or.ke" target="_blank">lists.kictanet.or.ke</a>] On Behalf Of McTim<br>
Sent: Thursday, May 06, 2010 8:15 AM<br>
To: Marie-Anne Kinyanjui<br>
Cc: KICTAnet ICT Policy Discussions; ke-users; Angela Nganga- Mumo<br>
Subject: Re: [kictanet] [ke-internetusers] Re: {Disarmed} Re: CCK vs Safaricom?- and now Safcom vs the Rest?<br>
<br>
On Thu, May 6, 2010 at 7:35 AM, Solomon Mburu Kamau<br>
<<a href="mailto:solo.mburu@gmail.com" target="_blank">solo.mburu@gmail.com</a>> wrote:<br>
> This is great Angela.<br>
> I really need to know why the 'big boy' is suddenly crying foul.<br>
<br>
<br>
Let's re-examine our assumptions of who the "Big Boy" in the Kenyan<br>
Telecommunications market is.<br>
<br>
The GoK owns a huge minority shareholding in Telkom.Orange (and may in<br>
future own a majority share).� When Orange makes a profit, so do its<br>
owners.<br>
<br>
The GoK owns a huge minority shareholding in Safaricom.� When SafCom<br>
makes a profit, so do its owners.<br>
<br>
The GoK collects a tremendous amount of VAT and other taxes from the<br>
telecoms market players.<br>
<br>
The GoK collects a tremendous amount of license fees and frequencies<br>
fees from the telecoms market players.<br>
<br>
The GoK sets policy via the CCK and the Ministry.<br>
<br>
So from my POV, the GoK is the BIG BOY, it seems to me that this is<br>
the "elephant in the room" that no one is talking about.<br>
<br>
In any case on this specific regulation, I applaud the intent of<br>
creating a level playing field.� However, I see no monetary "teeth" or<br>
enforcement measures (read fines) in this single doc (I have yet to<br>
read the others).<br>
<br>
My main objection is the 25% rule.� My reading of this is that there<br>
MUST always be at least one dominant provider.� Let me use a poker<br>
game analogy to make my point.� Before the first hand is dealt, all<br>
players will have an equal amount of chips.� After the first hand (and<br>
subsequent hands) there will (most likely) be a "chip leader" and a<br>
"short stack".� It is not likely that there will ever be equilibrium<br>
in the game (or in the telecoms market).<br>
<br>
I would suggest that this clause is not helpful, at least at the 25%<br>
value at which the trigger is now set.<br>
<br>
No wonder Safaricom is complaining.<br>
<br>
--<br>
Cheers,<br>
<br>
McTim<br>
"A name indicates what we seek. An address indicates where it is. A<br>
route indicates how we get there."� Jon Postel<br>
<br>
<br>
<br>
<br>
<br>
<br>
><br>
> On 06/05/2010, Carole K <<a href="mailto:mhariricarole@gmail.com" target="_blank">mhariricarole@gmail.com</a>> wrote:<br>
>> Thank you Angela, you are a star! The rest of us can now be informed about<br>
>> this new "unfair" regulation.<br>
>><br>
>> CK<br>
>><br>
>> On Wed, May 5, 2010 at 7:51 PM, Angela Nganga- Mumo <<br>
>> <a href="mailto:anganga@orange-tkl.co.ke" target="_blank">anganga@orange-tkl.co.ke</a>> wrote:<br>
>><br>
>>> Dear All,<br>
>>><br>
>>> Please find a PDF copy of the regulations.<br>
>>><br>
>>> Regards,<br>
>>><br>
>>>� logo2<br>
>>><br>
>>><br>
>>><br>
>>> Angela Ng'ang'a - Mumo<br>
>>><br>
>>> Head of Corporate Communications<br>
>>><br>
>>> Landline:� � � � � � � � � � � + 254 20 3232011<br>
>>><br>
>>> Orange Fixed Plus :� � ���+254 20 2454233<br>
>>><br>
>>> Orange Mobile:� � � � � � ���+254 772 548 066<br>
>>><br>
>>> Email :� � � � � � � � � � � ���<a href="mailto:anganga@orange-tkl.co.ke" target="_blank">anganga@orange-tkl.co.ke</a><br>
>>><br>
>>>� cid:image003.jpg@01C9FEEE.6AAFAFA0<br>
>>><br>
>>><br>
>>> -----Original Message-----<br>
>>> From: <a href="mailto:ke-internetusers-bounces@bdix.net" target="_blank">ke-internetusers-bounces@bdix.net</a><br>
>>> [mailto:<a href="mailto:ke-internetusers-bounces@bdix.net" target="_blank">ke-internetusers-bounces@bdix.net</a>] On Behalf Of<br>
>>> <a href="mailto:bitange@jambo.co.ke" target="_blank">bitange@jambo.co.ke</a><br>
>>> Sent: Wednesday, May 05, 2010 7:41 PM<br>
>>> To: Andrea Bohnstedt<br>
>>> Cc: KICTAnet ICT Policy Discussions; ke-users<br>
>>> Subject: [ke-internetusers] Re: {Disarmed} Re: [kictanet] CCK vs<br>
>>> Safaricom?- and now Safcom vs the Rest?<br>
>>><br>
>>> Will send it tomorrow.<br>
>>><br>
>>><br>
>>> Ndemo.<br>
>>><br>
>>><br>
>>> > I'd like to see the text, too. Dr Ndemo, could you or one of your<br>
>>> > colleagues<br>
>>> > email round a pdf with the regulations, please? Easier and a bit nicer<br>
>>> on<br>
>>> > the environment than all of us running downtown to buy paper copies.<br>
>>> ><br>
>>> > Thanks, Andrea<br>
>>> ><br>
>>> > On 4 May 2010 09:32, Walubengo J <<a href="mailto:jwalu@yahoo.com" target="_blank">jwalu@yahoo.com</a>> wrote:<br>
>>> ><br>
>>> >> the drama continues,<br>
>>> >><br>
>>> >> in a louder paid-up advert in today's press Yu, Orange and Zain<br>
>>> support<br>
>>> >> the<br>
>>> >> CCK regulations and dispute yesterday's Safcom's complaint.� All<br>
>>> these<br>
>>> >> without the public (or is it me?) not having copies of what they are<br>
>>> >> arguing<br>
>>> >> about!<br>
>>> >><br>
>>> >> Someone told me the copies of this regulations are available at the<br>
>>> >> Government Printers at a small fee.� Halloo? Assuming I leave in<br>
>>> >> Lokichoggio, Should i spend two days on the road to come and pickup<br>
>>> some<br>
>>> >> hard-copy regulations that should be downloadable?<br>
>>> >><br>
>>> >> Sergon, can you help me, where does this leave you with your<br>
>>> eGovernment<br>
>>> >> stories?<br>
>>> >><br>
>>> >> walu.<br>
>>> >><br>
>>> >> --- On *Mon, 5/3/10, Walubengo J <<a href="mailto:jwalu@yahoo.com" target="_blank">jwalu@yahoo.com</a>>* wrote:<br>
>>> >><br>
>>> >><br>
>>> >> From: Walubengo J <<a href="mailto:jwalu@yahoo.com" target="_blank">jwalu@yahoo.com</a>><br>
>>> >> Subject: Re: [kictanet] CCK vs Safaricom?<br>
>>> >> To: <a href="mailto:jwalu@yahoo.com" target="_blank">jwalu@yahoo.com</a><br>
>>> >> Cc: "KICTAnet ICT Policy Discussions" <<a href="mailto:kictanet@lists.kictanet.or.ke" target="_blank">kictanet@lists.kictanet.or.ke</a>><br>
>>> >> Date: Monday, May 3, 2010, 10:55 AM<br>
>>> >><br>
>>> >> Just seen a loud complaint from Safcom in today's Daily Nation.� They<br>
>>> >> quoted four regulations that have been gazetted and I have searched<br>
>>> >> <a href="http://www.cck.go.ke" target="_blank">www.cck.go.ke</a> to get a mouse on them but failed.<br>
>>> >><br>
>>> >> Anybody with e-copies on these regulations or specific url can plse<br>
>>> >> update.<br>
>>> >><br>
>>> >> walu.<br>
>>> >><br>
>>> >><br>
>>> >><br>
>>> >><br>
>>> >> -----Inline Attachment Follows-----<br>
>>> >><br>
>>> >> _______________________________________________<br>
>>> >> kictanet mailing list<br>
>>> >><br>
>>> <a href="mailto:kictanet@lists.kictanet.or.ke" target="_blank">kictanet@lists.kictanet.or.ke</a><<a href="http://mc/compose?to=kictanet@lists.kictan" target="_blank">http://mc/compose?to=kictanet@lists.kictan</a><br>
>>> <a href="http://et.or.ke" target="_blank">et.or.ke</a>><br>
>>> >> <a href="http://lists.kictanet.or.ke/mailman/listinfo/kictanet" target="_blank">
http://lists.kictanet.or.ke/mailman/listinfo/kictanet</a><br>
>>> >><br>
>>> >> This message was sent to:<br>
>>> >> <a href="mailto:jwalu@yahoo.com" target="_blank">jwalu@yahoo.com</a><<a href="http://mc/compose?to=jwalu@yahoo.com" target="_blank">http://mc/compose?to=jwalu@yahoo.com</a>><br>
>>> >> Unsubscribe or change your options at<br>
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http://lists.kictanet.or.ke/mailman/options/kictanet/jwalu%40yahoo.com</a><br>
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>>> >><br>
>>> >><br>
>>> >> _______________________________________________<br>
>>> >> kictanet mailing list<br>
>>> >> <a href="mailto:kictanet@lists.kictanet.or.ke" target="_blank">kictanet@lists.kictanet.or.ke</a><br>
>>> >> <a href="http://lists.kictanet.or.ke/mailman/listinfo/kictanet" target="_blank">
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>>> >><br>
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>>> ><br>
>>> ><br>
>>> > --<br>
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>>> > Publisher<br>
>>> > +254 720 960 322<br>
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>>> _______________________________________________<br>
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