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<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>Hi Edith <o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>Thanks for the data which could give some empirical
data on which to make informed decisions on the cost of mobile services <o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>In doing so we need to interrogate the tool used for the comparison
and see how far it is valid in our situation and therefore the validity
of the comparison <o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>The tool by OECD developed in 2006 assumes common or
nearly common features of the operators i.e. <o:p></o:p></span></p>
<p class=MsoListParagraph style='text-indent:-18.0pt;mso-list:l0 level1 lfo1'><![if !supportLists]><span
style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><span
style='mso-list:Ignore'>-<span style='font:7.0pt "Times New Roman"'>
</span></span></span><![endif]><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>a case in point is coverage . In Kenya , this is not the case,
Safaricom has the largest coverage and therefore a price comparison
must take this into account which the tool cannot . given that low end
users as intended by the tool wish to travel across the country ,
an improved tool would capture signal per km coverage -
Safaricom would come out cheapest . That tool used by the policy makers would
encourage even more investment to expand coverage <o:p></o:p></span></p>
<p class=MsoListParagraph style='text-indent:-18.0pt;mso-list:l0 level1 lfo1'><![if !supportLists]><span
style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><span
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</span></span></span><![endif]><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>Services wrapped around a number – the OECD tool
assumes voice and limited data services – Kenya is in the global
map because of the services it has put around the cellular number . thus
different operators have put different services and which gives a low end user
an advantage . again some of the operators have different spread of MMT coverage
and services around it and one got global recognition and award ( Safaricom was
awarded this week in Barcelona), support for low end user e.g.
Okoa jahazi, data offering e.g. 3G , support for the number –
access to customer care , and psychological image – branding around
it <o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'> This is why many Kenyans have more than one sim
card. While one card may give a cost advantage on voice in and around urban
areas, the same SIM card does not give MMT or data and hence the need
to have another card or even another phone. The cost is eventually is high for
the low end user<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>We can put Kenya in the map again by developing our own tool
that helps Kenya towards vision 2030. OECD tool is not appropriate for a
developing country like Kenya . it fails to capture why Kenya is on
the world map and where we have failed , why we failed <o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
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<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>cheers <o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>Muriuki Mureithi <o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal><i><span style='font-size:9.0pt;font-family:"Verdana","sans-serif";
color:#1F497D'>Those who bring sunshine to the lives of others cannot keep it
from themselves. Sir james m barrie<br>
<br>
</span></i><i><span style='font-size:9.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p></o:p></span></i></p>
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<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
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<div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0cm 0cm 0cm'>
<p class=MsoNormal><b><span lang=EN-US style='font-size:10.0pt;font-family:
"Tahoma","sans-serif"'>From:</span></b><span lang=EN-US style='font-size:10.0pt;
font-family:"Tahoma","sans-serif"'> kictanet-bounces+mureithi=summitstrategies.co.ke@lists.kictanet.or.ke
[mailto:kictanet-bounces+mureithi=summitstrategies.co.ke@lists.kictanet.or.ke] <b>On
Behalf Of </b>Edith Adera<br>
<b>Sent:</b> 18 February 2011 07:39<br>
<b>To:</b> mureithi@summitstrategies.co.ke<br>
<b>Cc:</b> KICTAnet ICT Policy Discussions<br>
<b>Subject:</b> [kictanet] FW: Price Control in the Telecom Market in Kenya?<o:p></o:p></span></p>
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<p class=MsoNormal><o:p> </o:p></p>
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<p class=MsoNormal>Some statistics!<o:p></o:p></p>
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<p class=MsoNormal><o:p> </o:p></p>
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<p class=MsoNormal><o:p> </o:p></p>
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<p class=MsoNormal><img width=640 height=252
id="_x0033_4c1e3f5-e79d-4e53-bab3-fa2a3e6cbb83"
src="cid:image001.png@01CBCF45.94619FB0"><o:p></o:p></p>
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<p class=MsoNormal> <o:p></o:p></p>
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<p class=MsoNormal><span style='font-size:7.5pt;font-family:"Lucida Grande","serif"'>EBITDA
is Earning before interest tax depreciation and amortization and is an
accounting measure that allows comparison across companies since it
neutralizes tax and cost of capital effects as well as depreciation rules.<o:p></o:p></span></p>
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<p class=MsoNormal><span style='font-size:7.5pt;font-family:"Lucida Grande","serif"'><o:p> </o:p></span></p>
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