<html><body><div style="color:; background-color:; font-family:arial, helvetica, sans-serif;font-size:13px">thnx Eng. Kariuki for confirming that I am not being too academic...or esoteric as Makali would say.<br><br>Looks like CS Dr. Matiangi & PS Tiampati are either missing or ignoring your input :-) <br><br>No offense meant at the able team at the National Communication Secretariate but maybe they need to ocassionally recall you from retirement to help set the record straight :-)<br><br>walu.<br><div><span><br></span></div><div><br></div> <div style="font-family: times new roman, new york, times, serif; font-size: 12pt;"> <div style="font-family: times new roman, new york, times, serif; font-size: 12pt;"> <div dir="ltr"> <hr size="1"> <font face="Arial" size="2"> <b><span style="font-weight:bold;">From:</span></b> John Kariuki <ngethe.kariuki2007@yahoo.co.uk><br> <b><span style="font-weight: bold;">To:</span></b> Walubengo J
<jwalu@yahoo.com> <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> Friday, July 12, 2013 5:54 PM<br> <b><span style="font-weight: bold;">Subject:</span></b> Re: [kictanet] Regulator allows telcos to join fund after 3-year tussle<br> </font> </div> <div class="y_msg_container"><br><div id="yiv6787867031"><div><div style="color:#000;background-color:#fff;font-family:times new roman, new york, times, serif;font-size:12pt;"><div style="font-family:'times new roman', 'new york', times, serif;"><span>Walu,Listers,</span></div><div style="font-family:'times new roman', 'new york', times, serif;color:rgb(0, 0, 0);font-size:16px;background-color:transparent;font-style:normal;"><span>If the report is correct and if the fund will be managed by CCK then fundamental governance issues will arise.</span></div><div
style="font-family:'times new roman', 'new york', times, serif;color:rgb(0, 0, 0);font-size:16px;background-color:transparent;font-style:normal;"><span>The fundamental reference here is World Trade Organization and I quote some excerpts below:</span></div><div style="font-family:'times new roman', 'new york', times, serif;color:rgb(0, 0, 0);font-size:16px;background-color:transparent;
font-style:normal;"><span><br></span></div><div class="yiv6787867031MsoBodyTextIndent" style="font-family:'times new roman', 'new york', times, serif;text-align:justify;text-indent:18pt;"><span style="" lang="EN-US">The WTO, GATS
Reference Paper defines “Independent Regulator” as</span></div><div class="yiv6787867031MsoBodyTextIndent" style="font-family:'Bookman Old Style', serif;text-align:justify;text-indent:18pt;color:rgb(0, 0, 0);font-size:16px;background-color:transparent;font-style:normal;"><span style="" lang="EN-US"><br></span></div><div style="font-family:'times new roman', 'new york', times, serif;background-color:transparent;"><span>
</span></div><div class="yiv6787867031MsoBodyText" style="font-family:'times new roman', 'new york', times, serif;margin-left:36pt;text-align:justify;"><span style="" lang="EN-US">‘separate from, and
not accountable to, any supplier of basic telecommunications services. The
decision of and the procedures used by regulators shall be impartial with
respect to all market participants’.</span></div><div style="font-family:'times new roman', 'new york', times, serif;"><br></div><div style="font-family:'times new roman', 'new york', times, serif;color:rgb(0, 0, 0);font-size:16px;background-color:transparent;font-style:normal;">Further EU puts it as below:</div><div style="font-family:'times new roman', 'new york', times, serif;color:rgb(0, 0, 0);font-size:16px;background-color:transparent;font-style:normal;"><span class="yiv6787867031Apple-tab-span" style="white-space:pre;"> </span>"<span style="font-family:'Bookman Old Style', serif;text-align:justify;font-size:12pt;">EU directive 97/51 requires
the establishment of national regulatory agencies and puts the condition that
these:</span></div>
<div class="yiv6787867031MsoBodyText" style="font-family:'times new roman', 'new york', times, serif;margin-left:18pt;text-align:justify;"><span style="" lang="EN-US">‘shall be distinct
from and functionally independent of all organizations providing telecommunications
networks, equipments and services’.</span></div><div class="yiv6787867031MsoBodyText" style="font-family:'Bookman Old Style', serif;margin-left:18pt;text-align:justify;color:rgb(0, 0, 0);font-size:16px;background-color:transparent;font-style:normal;"><span style="" lang="EN-US"><br></span></div><div class="yiv6787867031MsoBodyText" style="margin-left:18pt;text-align:justify;color:rgb(0, 0, 0);font-size:16px;background-color:transparent;font-style:normal;"><span style="font-family:'Bookman Old Style', serif;">So without going into a long debate,I wonder how, in the above circumstances, operators can sit in a committee of a regulator?</span></div><div class="yiv6787867031MsoBodyText" style="margin-left:18pt;text-align:justify;color:rgb(0, 0, 0);font-size:16px;background-color:transparent;font-style:normal;font-family:'Bookman Old Style', serif;"><span style="font-family:'Bookman Old
Style', serif;"><br></span></div><div class="yiv6787867031MsoBodyText" style="margin-left:18pt;text-align:justify;color:rgb(0, 0, 0);font-size:16px;background-color:transparent;font-style:normal;font-family:'Bookman Old Style', serif;"><span style="font-family:'Bookman Old Style', serif;">John Kariuki.</span></div> <div style="font-family:'times new roman', 'new york', times, serif;font-size:12pt;"> <div style="font-family:'times new roman', 'new york', times, serif;font-size:12pt;"> <div dir="ltr"> <hr size="1"> <font face="Arial" size="2"> <b><span style="font-weight:bold;">From:</span></b> Walubengo J <jwalu@yahoo.com><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> Thursday, 11 July 2013, 17:27<br> <b><span
style="font-weight:bold;">Subject:</span></b> Re: [kictanet] Regulator allows telcos to join fund after 3-year
tussle<br> </font> </div> <div class="yiv6787867031y_msg_container"><br><div id="yiv6787867031"><div><div style="font-family:arial, helvetica, sans-serif;font-size:13px;"><div><span>@GG,</span></div><div style="color:rgb(0, 0, 0);font-size:13px;font-family:arial, helvetica, sans-serif;background-color:transparent;font-style:normal;"><br><span></span></div><div style="color:rgb(0, 0, 0);font-size:13px;font-family:arial, helvetica, sans-serif;background-color:transparent;font-style:normal;"><span>not sure if this is true -that Telco Operators will now sit on the Universal Service Adv Council. Also not sure if this follows the input Stakeholders gave at Karen on Tue during the stakeholders meeting.</span></div><div style="color:rgb(0, 0, 0);font-size:13px;font-family:arial, helvetica, sans-serif;background-color:transparent;font-style:normal;"><br><span></span></div><div style="color:rgb(0, 0, 0);font-size:13px;
font-family:arial, helvetica, sans-serif;background-color:transparent;font-style:normal;"><span>I do understand why Operators would want to sit on this council - to ensure their financial contribution is not embezzled or misused. However, this may create a governance challenge, given my understanding of what the universal service fund is meant to address. Which is to allow government to raise some funds from Operators and then use the same to move communication services into non-economic areas. <br></span></div><div><br></div><div>So one would expect some "independence" in terms of the Regulator determining which areas is non-economic, which services are needed there and which Operator will be selected to deliver the same. Am not sure how Operators sitting on this council will offer objective and independent counsel on such a matter where they will obviously be an interested party.</div><div><br></div><div>What is likely to play out in this
Universal Advisory Council is the big-man syndrome - that is, I see
for example, Safaricom as an Operator may want to remind other that their 0.5% contribution is the highest, so their comments on which area is non-economic, which services are needed and which operator will provide the same may take precedence.</div><div><br></div><div style="color:rgb(0, 0, 0);font-size:13px;font-family:arial, helvetica, sans-serif;background-color:transparent;font-style:normal;">Maybe am being too academic? What is the practice in other jurisdictions for members of this council?<br></div><div><br></div><div style="color:rgb(0, 0, 0);font-size:13px;font-family:arial, helvetica, sans-serif;background-color:transparent;font-style:normal;">walu.</div><div style="color:rgb(0, 0, 0);font-size:13px;font-family:arial, helvetica, sans-serif;background-color:transparent;font-style:normal;"><br></div> <div style="font-family:'times new roman', 'new york', times, serif;font-size:12pt;"> <div style="font-family:'times new roman', 'new
york', times, serif;font-size:12pt;"> <div dir="ltr"> <hr size="1"> <font face="Arial" size="2"> <b><span style="font-weight:bold;">From:</span></b> Grace Githaiga <ggithaiga@hotmail.com><br> <b><span style="font-weight:bold;">To:</span></b> jwalu@yahoo.com <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> Wednesday, July 10, 2013 10:49 PM<br> <b><span style="font-weight:bold;">Subject:</span></b> [kictanet] Regulator allows telcos to join fund after 3-year tussle<br> </font> </div> <div class="yiv6787867031y_msg_container"><br><div id="yiv6787867031">
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<div><div dir="ltr"><div class="yiv6787867031newstype" style="margin-bottom:5px;padding-left:13px;line-height:1.5em;text-transform:uppercase;font-weight:bold;color:rgb(51, 51, 51);background-image:url(http://www.businessdailyafrica.com/image/view/-/539614/data/85/-/10r7mmuz/-/ico_file.png);background-position:0px 2px;background-repeat:no-repeat no-repeat;"><font face="Tahoma" size="2">IN SUMMARY</font></div><div style="margin:0px;padding:0px;color:rgb(68, 68, 68);"><ul style="margin-right:0px;margin-left:0px;padding-right:0px;padding-left:0px;line-height:1.5em;"><li style="margin:0px 0px 0px 1.5em;padding:0px;line-height:1.5em;"><font face="Tahoma" size="2">Communications Commission of Kenya (CCK) said it had expanded the membership of the Universal Service Advisory Council (USAC) to nine from six to include representatives of the telcos, broadcasters and postal operators.</font></li><li style="margin:0px 0px 0px
1.5em;padding:0px;line-height:1.5em;"><font face="Tahoma" size="2">The move ends a three-year standoff that had stalled the fund, which was to receive 0.5 per cent of revenues from firms regulated by the CCK like Nation Media, Safaricom and Postal Corporation of Kenya.</font></li></ul></div><div><br></div><font face="Tahoma" size="2"><a rel="nofollow" target="_blank" href="http://www.businessdailyafrica.com/Corporate-News/Regulator-allows-telcos-to-join-fund-after-3-year-tussle-/-/539550/1911224/-/item/1/-/74b9ja/-/index.html">http://www.businessdailyafrica.com/Corporate-News/Regulator-allows-telcos-to-join-fund-after-3-year-tussle-/-/539550/1911224/-/item/1/-/74b9ja/-/index.html</a></font> </div></div>
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