<html><head><style type="text/css"><!-- DIV {margin:0px;} --></style></head><body><div style="font-family:times new roman,new york,times,serif;font-size:12pt">Lest we forget, I am informed that a new Kenya Competition Act 2011? has now become effective.The subject under debate now is best informed by such ''Competition Law". It is that law which would define acceptable conduct between competitors ( who have the greatest self interest in the matter) and also would take care of consumer interests.<br>Again the words of Proverbs 18,17-18 may assist and I quote<br>"The first man to speak in court always seems right until his opponent begins to question him"<br><br><br>John Kariuki<br><div><br></div><div style="font-family: times new roman,new york,times,serif; font-size: 12pt;"><br><div style="font-family: arial,helvetica,sans-serif; font-size: 13px;"><font face="Tahoma" size="2"><hr size="1"><b><span style="font-weight: bold;">From:</span></b>
Edith Adera <eadera@idrc.or.ke><br><b><span style="font-weight: bold;">To:</span></b> ngethe.kariuki2007@yahoo.co.uk<br><b><span style="font-weight: bold;">Cc:</span></b> KICTAnet ICT Policy Discussions <kictanet@lists.kictanet.or.ke><br><b><span style="font-weight: bold;">Sent:</span></b> Wed, 16 February, 2011 11:28:12<br><b><span style="font-weight: bold;">Subject:</span></b> Re: [kictanet] Price Control in the Telecom Market in Kenya?<br></font><br>Bwana Ndemo,<br><br>While I agree with most of your analysis (not all), could you please be SPECIFIC on what your "conservative stand" is?<br><br>That would allow appropriate response.<br><br>In the meantime, we need to keep in mind what drives innovation - the insatiable desire to survive (NOT TO DIE) rather than "protection"!!<br><br>Lets support innovation rather than protection!<br><br>Edith<br><br>PS: who should be the "objective" arbitatrator given Government's stake in Safaricom? or was
it all sold?<br><br>_______________<br>Edith Ofwona Adera<br>Senior Program Specialist<br>ICT4D Program and Climate Change & Water Program<br>International Development Research Centre | Centre de recherches pour le développement international<br>Regional Office for Eastern and Southern Africa<br>Tel: +254202713160 | Fax/Téléc: +254202711063 | Skype: edithadera<br><a ymailto="mailto:eadera@idrc.or.ke" href="mailto:eadera@idrc.or.ke">eadera@idrc.or.ke</a><span> | <a target="_blank" href="http://www.idrc.ca">www.idrc.ca</a> | <a target="_blank" href="http://www.crdi.ca">www.crdi.ca</a></span><br>________________________________________<br>From: <a ymailto="mailto:bitange@jambo.co.ke" href="mailto:bitange@jambo.co.ke">bitange@jambo.co.ke</a> [<a ymailto="mailto:bitange@jambo.co.ke" href="mailto:bitange@jambo.co.ke">bitange@jambo.co.ke</a>]<br>Sent: 16 February 2011 11:58<br>To: Edith Adera<br>Cc: <a ymailto="mailto:bitange@jambo.co.ke"
href="mailto:bitange@jambo.co.ke">bitange@jambo.co.ke</a>; KICTAnet ICT Policy Discussions<br>Subject: Re: [kictanet] Price Control in the Telecom Market in Kenya?<br><br>Edith,<br>Prices will eventually come down even below one shilling especially when<br>Subscriber base begins to exceed 100%. It is selfish for us now to<br>celebrate lower tarrifs when coverage is at 40%. We need to improve<br>coverage to at least 90%. There are pockets even in Nairobi where none of<br>the operators has covered. The quality of service is still wanting as new<br>technologies that put pressure on capex keep on emerging. We are not<br>seeing aggresive rollout of 3G which all of you agree that it is critical<br>to our last mile broadband.<br><br>For many years, Kenya's development has largely been minimalist,<br>depressing and expensive. In the past few years, we started moving from<br>such experiments and made serious interventions in
the Telcoms and Road<br>sectors. Serious investors are now considering Kenya as a good investment<br>destination. Other consideration include return on investment not only<br>for foreign investors but local investors too. Margins therefore become a<br>critical factor.<br><br>There is no where in the world where lower margins have kept pace with<br>technology. Any analyst will tell you that at the pace which prices are<br>coming down in Kenya, one operator is bound to die. Unfortunately, most<br>of the celebrating crowd will train their spears on government asking what<br>it was doing. Whichever way the government gets the flak. That is why I<br>make no apologies for taking a conservative stand.<br><br><br>Regards<br><br><br>Ndemo.<br><br><br><br><br><br>> Listers,<br>><br>> The news I heard today made me wanna shadder!<br>><br>> A player with market power asking for price controls in the
telecom<br>> market? Are we progressing or retrogressing?<br>><br>> Telecom Economics dictates otherwise and this must NOT happen in a free<br>> and competitive market! Our recent discussions on broadband access just<br>> goes to confirm that we are not there yet. We have not yet reached the<br>> most remote and isolated corners of this country....control MUST not be an<br>> option!<br>><br>> The Kenyan consumer continues to be constrained by availability,<br>> accessibility and affordability to fully realize the socio-economic<br>> benefits of telecoms.<br>><br>> As a voice for the common consumer.....among a million other<br>> voices......price control is NOT an option!<br>><br>> Edith<br>><br>> ________________<br>> Edith Ofwona Adera<br>> Senior Program Specialist<br>> ICT4D Program and Climate Change & Water Program<br>> International Development Research Centre | Centre de
recherches pour le<br>> développement international<br>> Regional Office for Eastern and Southern Africa<br>> Tel: +254202713160 | Fax/Téléc: +254202711063 | Skype: edithadera<br>> <a ymailto="mailto:eadera@idrc.or.ke" href="mailto:eadera@idrc.or.ke">eadera@idrc.or.ke</a><mailto:<a ymailto="mailto:eadera@idrc.or.ke" href="mailto:eadera@idrc.or.ke">eadera@idrc.or.ke</a>> |<br><span>> <a target="_blank" href="http://www.idrc.ca">www.idrc.ca</a><</span><a href="http://www.idrc.ca/" target="_blank">http://www.idrc.ca/</a><span>> | <a target="_blank" href="http://www.crdi.ca">www.crdi.ca</a><</span><a href="http://www.crdi.ca/" target="_blank">http://www.crdi.ca/</a>><br>> [<a href="https://email.idrc.or.ke/owa/attachment.ashx?id=RgAAAAANayfd3%2b2VQYZo%2flcEcy23BwBGVjMm%2bu2wT5L%2b09sJnJi7AAACCuteAABGVjMm%2bu2wT5L%2b09sJnJi7AB4xzB0cAAAJ&attcnt=1&attid0=EAAMf1dr1NMFTaXab9x9F4f4"
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