<html><body><div style="color:#000; background-color:#fff; font-family:times new roman, new york, times, serif;font-size:12pt">Walu, Edith,<br><br>Just to quote my lecturer in the subject of regulation. He said.<br>"There is no career in Regulation.If you are a good Regulator,you will,sooner than later,loose your job because,at any one time, at least one party will be unhappy with your decision and will fight you tooth and nail,whatever they say to the contrary"<br><br>That unfortunately is the fate of those in that field.<br>John Kariuki<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> Edith Adera <eadera@idrc.ca><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> Consumer and Public Affairs <CPA@cck.go.ke>; KICTAnet ICT Policy Discussions <kictanet@lists.kictanet.or.ke> <br> <b><span style="font-weight: bold;">Sent:</span></b> Tuesday, 30 July 2013, 14:44<br> <b><span style="font-weight: bold;">Subject:</span></b> Re: [kictanet] CCK to renew Safaricom's licence<br> </font> </div> <div class="y_msg_container"><br><div id="yiv1321403335">
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<div class="yiv1321403335MsoNormal"><span style="font-size:11.0pt;color:#1F497D;">Walu,</span></div>
<div class="yiv1321403335MsoNormal"><span style="font-size:11.0pt;color:#1F497D;"> </span></div>
<div class="yiv1321403335MsoNormal"><span style="font-size:11.0pt;color:#1F497D;">Well presented!</span></div>
<div class="yiv1321403335MsoNormal"><span style="font-size:11.0pt;color:#1F497D;"> </span></div>
<div class="yiv1321403335MsoNormal"><span style="font-size:11.0pt;color:#1F497D;">We should be worried, VERY worried, when the “referee” begins to fear the “player”!!
</span></div>
<div class="yiv1321403335MsoNormal"><span style="font-size:11.0pt;color:#1F497D;"> </span></div>
<div class="yiv1321403335MsoNormal"><span style="font-size:11.0pt;color:#1F497D;">Poor QoS is acknowledged, but NO tangible action!</span></div>
<div class="yiv1321403335MsoNormal"><span style="font-size:11.0pt;color:#1F497D;"> </span></div>
<div class="yiv1321403335MsoNormal"><span style="font-size:11.0pt;color:#1F497D;">I feel that CCK is “skirting around the problem”!!
</span></div>
<div class="yiv1321403335MsoNormal"><span style="font-size:11.0pt;color:#1F497D;"> </span></div>
<div class="yiv1321403335MsoNormal"><span style="font-size:11.0pt;color:#1F497D;">Edith</span></div>
<div class="yiv1321403335MsoNormal"><span style="font-size:11.0pt;color:#1F497D;"> </span></div>
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<div class="yiv1321403335MsoNormal"><b><span style="font-size:10.0pt;" lang="EN-US">From:</span></b><span style="font-size:10.0pt;" lang="EN-US"> Walubengo J [mailto:jwalu@yahoo.com]
<br>
<b>Sent:</b> July 30, 2013 2:37 PM<br>
<b>To:</b> Edith Adera<br>
<b>Cc:</b> Consumer and Public Affairs; KICTAnet ICT Policy Discussions<br>
<b>Subject:</b> Re: [kictanet] CCK to renew Safaricom's licence</span></div>
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<div class="yiv1321403335MsoNormal"> </div>
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<div class="yiv1321403335MsoNormal" style="margin-bottom:12.0pt;background:white;"><span style="color:black;">@Edith,<br>
<br>
I am not a regulator and neither do I intend to shield Wambua/CCK from your question. But I can tell you one way to deal with poor service is to provide competition which I believe CCK has done very well.<br>
<br>
(Un?)Fortunately through sheer hard work (or otherwise?) Safcom has managed to get 78% market share in the data market. So they are for all purposes and intent a monopoly in that space. Monopolies by nature tend to be dictate alot of things - including how
to make more money within the shortest time and using the lowest effort (squeezed resources). Capitalist call this efficiency, but Users reflect it as poor quality :-)<br>
<br>
Monopolies as you know are a hard nut to crack (ask Microsoft, Google, AT&T and others). With all due respect, I highly doubt that CCK can crack Safaricom in its own..it might have to explore legal avenues available in the Competition laws. Sponsor one Mutoro,
Omutatah et. al. to fundamentally break up the giant that Safaricom has become.<br>
<br>
And I say this with a heavy heart since I am both a (not-so-big) Safaricom shareholder and 12year old subscriber/customer and I have no clue what or how such a break-up would play out. Choices have consequences....<br>
<br>
walu.</span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:black;"> </span></div>
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<div class="yiv1321403335MsoNormal" style="text-align:center;background:white;" align="center">
<span style="color:black;">
<hr align="center" size="1" width="100%">
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<div class="yiv1321403335MsoNormal" style="background:white;"><b><span style="font-size:10.0pt;color:black;">From:</span></b><span style="font-size:10.0pt;color:black;"> Edith Adera <<a rel="nofollow" ymailto="mailto:eadera@idrc.ca" target="_blank" href="mailto:eadera@idrc.ca">eadera@idrc.ca</a>><br>
<b>To:</b> <a rel="nofollow" ymailto="mailto:jwalu@yahoo.com" target="_blank" href="mailto:jwalu@yahoo.com">jwalu@yahoo.com</a> <br>
<b>Cc:</b> Consumer and Public Affairs <<a rel="nofollow" ymailto="mailto:CPA@cck.go.ke" target="_blank" href="mailto:CPA@cck.go.ke">CPA@cck.go.ke</a>>; KICTAnet ICT Policy Discussions <<a rel="nofollow" ymailto="mailto:kictanet@lists.kictanet.or.ke" target="_blank" href="mailto:kictanet@lists.kictanet.or.ke">kictanet@lists.kictanet.or.ke</a>>
<br>
<b>Sent:</b> Tuesday, July 30, 2013 11:28 AM<br>
<b>Subject:</b> Re: [kictanet] CCK to renew Safaricom's licence</span><span style="color:black;"></span></div>
</div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:black;"> </span></div>
<div id="yiv1321403335">
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:#1F497D;">Wambua,</span><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:#1F497D;"> </span><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:#1F497D;">This is a very “generic” response!</span><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:#1F497D;"> </span><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:#1F497D;">Am I right in reading from your email that NOTHING much is done for poor QoS until licenses are up for renewal? What SPECIFIC actions have been taken to-date? When should we expect better
QoS before June 2014?</span><span style="color:black;"></span></div>
</div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:#1F497D;"> </span><span style="color:black;"></span></div>
</div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:#1F497D;">OR are we dealing with a case of “regulatory capture”?</span><span style="color:black;"></span></div>
</div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:#1F497D;"> </span><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:#1F497D;">Edith</span><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:#1F497D;"> </span><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><b><span style="font-size:10.0pt;color:black;" lang="EN-US">From:</span></b><span style="font-size:10.0pt;color:black;" lang="EN-US"> Wambua, Christopher
<a rel="nofollow" ymailto="mailto:[mailto:Wambua@cck.go.ke]" target="_blank" href="mailto:[mailto:Wambua@cck.go.ke]">[mailto:Wambua@cck.go.ke]</a> <br>
<b>Sent:</b> July 29, 2013 5:39 PM<br>
<b>To:</b> Edith Adera<br>
<b>Cc:</b> Consumer and Public Affairs; KICTAnet ICT Policy Discussions<br>
<b>Subject:</b> RE: [kictanet] CCK to renew Safaricom's licence<br>
<b>Importance:</b> High</span><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:black;"> </span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:#1F497D;" lang="EN-US">Edith/Listers</span><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:#1F497D;" lang="EN-US"> </span><span style="color:black;"></span></div>
</div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:#1F497D;" lang="EN-US">One of the responsibilities of CCK is to protect the interests of consumers, including against poor quality of service. To this end, CCK independently monitors the QoS on
annual basis to determine whether licensees meet the minimum set parameters or standards. Each year, we publish the performance of the four mobile operators in respect to QoS to empower consumers make informed choices in the market. We also levy penalties
on non-compliant licensees (i.e. those that do not meet the set standards). The penalties stipulated in the Kenya Information and Communications Act, CAP 411A of Kshs500,000, are however too low and do not serve as an adequate deterrent. To address this,
the penalties have been enhanced in the proposed Kenya Information and Communications (Amendment) Bill. CCK is also enhancing its monitoring capabilities to be able to process and publish the performance results more frequently for public information and
as a way of encouraging service providers to provide quality services. </span><span style="color:black;"></span></div>
</div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:#1F497D;" lang="EN-US"> </span><span style="color:black;"></span></div>
</div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:#1F497D;" lang="EN-US">The monitoring results also assist licensees to identify areas of non-compliance for purposes of improvement. Arising from our concern over QoS performance, CCK has requested
non-compliant licensees to submit action plans on how they intend to improve on QoS.
</span><span style="color:black;"></span></div>
</div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:#1F497D;" lang="EN-US"> </span><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:#1F497D;" lang="EN-US">Let me also add that QoS is a major consideration in the renewal of licences for the mobile operators and other service providers. The renewal of the Safaricom licence
is due in June 2014. CCK is looking forward to enhancing the licence conditions in respect to QoS to make ensure that consumers get value for their money.
</span><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:#1F497D;" lang="EN-US"> </span><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:#1F497D;" lang="EN-US">Best regards,</span><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:#1F497D;" lang="EN-US"> </span><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><b><span style="color:#1F497D;" lang="EN-US">Christopher Wambua</span></b><span style="color:black;"></span></div>
</div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><b><span style="color:#1F497D;" lang="EN-US">Manager – Communications</span></b><span style="color:black;"></span></div>
</div>
<div>
<div class="yiv1321403335MsoNormal" style="background:white;"><b><span style="color:#1F497D;" lang="EN-US">Consumer and Public Affairs Department</span></b><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><b><span style="color:#1F497D;" lang="EN-US">Communications Commission of Kenya</span></b><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><b><span style="color:#1F497D;" lang="EN-US">P.O. Box 14448 NAIROBI 00800</span></b><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><b><span style="color:#1F497D;" lang="EN-US">Tel: +254 20 4242209</span></b><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><b><span style="color:#1F497D;" lang="EN-US"><a rel="nofollow" ymailto="mailto:info@cck.go.ke" target="_blank" href="mailto:info@cck.go.ke"><span style="color:#1F497D;">info@cck.go.ke</span></a></span></b><span style="color:black;"></span></div>
</div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><b><span style="color:#1F497D;" lang="EN-US"><a rel="nofollow" target="_blank" href="http://www.cck.go.ke/"><span style="color:#1F497D;">www.cck.go.ke</span></a></span></b><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><b><span style="color:#1F497D;" lang="EN-US"> </span></b><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><b><span style="font-size:10.0pt;color:black;" lang="EN-US">From:</span></b><span style="font-size:10.0pt;color:black;" lang="EN-US"> Edith Adera
<a rel="nofollow" ymailto="mailto:[mailto:eadera@idrc.ca]" target="_blank" href="mailto:[mailto:eadera@idrc.ca]">[mailto:eadera@idrc.ca]</a>
<br>
<b>Sent:</b> Monday, July 29, 2013 4:43 PM<br>
<b>To:</b> Wambua, Christopher<br>
<b>Cc:</b> Consumer and Public Affairs; KICTAnet ICT Policy Discussions<br>
<b>Subject:</b> RE: [kictanet] CCK to renew Safaricom's licence</span><span style="color:black;"></span></div>
</div>
</div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:black;" lang="EN-US"> </span><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:black;">Dear Wambua,</span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:black;"> </span></div>
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<div>
<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:black;">Thanks for bringing this issue to our attention. Actually, 2 weeks ago an email I had composed for the list got deleted before I could deliver it…then I got swamped!</span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:black;"> </span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:black;">The email was about the “poor quality of service” from Safaricom – too many dropped calls, uncompleted calls, undelivered sms”, hanging sms” etc. and asking the
</span><span style="color:red;">BIG QUESTION: “WHAT IS CCK DOING ABOUT THIS UNACCEPTABLY LOW QUALITY OF SERVICE?”</span><span style="color:black;"></span></div>
</div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:black;"> </span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:black;">I see you have suggested that renewal of license is subject to “ …..meeting
</span><span style="color:black;" lang="EN-US">set minimum quality of service standards by June 2014.”</span><span style="color:black;"></span></div>
</div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:black;" lang="EN-US"> </span><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:black;" lang="EN-US">Why by June 2014?</span><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:black;" lang="EN-US"> </span><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:black;" lang="EN-US">We want good service NOW!</span><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:black;" lang="EN-US"> </span><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:black;" lang="EN-US">Can CCK address this
<u>now</u> and get back to us telling us what will be done <u>now</u> and NOT June 2014?</span><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:black;" lang="EN-US">Concerned Edith</span><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><b><span style="font-size:10.0pt;color:black;" lang="EN-US">From:</span></b><span style="font-size:10.0pt;color:black;" lang="EN-US"> kictanet
<a rel="nofollow" ymailto="mailto:[mailto:kictanet-bounces+eadera=idrc.ca@lists.kictanet.or.ke]" target="_blank" href="mailto:[mailto:kictanet-bounces+eadera=idrc.ca@lists.kictanet.or.ke]">
[mailto:kictanet-bounces+eadera=idrc.ca@lists.kictanet.or.ke]</a> <b>On Behalf Of
</b>Wambua, Christopher<br>
<b>Sent:</b> July 26, 2013 4:48 PM<br>
<b>To:</b> Edith Adera<br>
<b>Cc:</b> Consumer and Public Affairs; KICTAnet ICT Policy Discussions<br>
<b>Subject:</b> [kictanet] CCK to renew Safaricom's licence<br>
<b>Importance:</b> High</span><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><span style="color:black;" lang="EN-US">Listers,
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<div class="yiv1321403335MsoNormal" style="text-align:justify;background:white;"><b><u><span style="color:black;" lang="EN-US">CCK to renew Safaricom’s licence
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<div class="yiv1321403335MsoNormal" style="text-align:justify;background:white;"><span style="color:black;" lang="EN-US">Kenya’s largest mobile operator – Safaricom – will pay Kshs2.36billion (US$27million) for renewal of its operating licence for a further term of 10 years.</span><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="text-align:justify;background:white;"><span style="color:black;" lang="EN-US">CCK today announced that the renewal of Safaricom’s licence would depend on the operator paying the renewal fee upfront and meeting the set minimum quality
of service standards by June 2014. Safaricom’s initial licence term of 15 years is set to expire on 30th June 2014 but has a provision for a possible renewal for a further term of 10 years.
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<div class="yiv1321403335MsoNormal" style="text-align:justify;background:white;"><span style="color:black;" lang="EN-US">Addressing the media at the CCK offices, CCK Director General Mr. Francis Wangusi said the renewed Safaricom licence would come with a set of new licence
terms and conditions negotiated between the regulator and the mobile operator. </span>
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<div class="yiv1321403335MsoNormal" style="text-align:justify;background:white;"><span style="color:black;" lang="EN-US">The licence renewal fee of US$27 million is based on the bid price offered for the third GSM mobile licence by the latest entrant to the mobile telecoms
market in Kenya -Econet Wireless Kenya Ltd (now Essar Telecom Kenya Ltd). </span>
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<div class="yiv1321403335MsoNormal" style="text-align:justify;background:white;"><span style="color:black;" lang="EN-US">The Director General said that whereas Safaricom has significantly contributed to the economy, developed innovative products and services and met most its
licence obligations, the mobile operator needs to up its game in regard to meeting the set quality of service standards.
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<div class="yiv1321403335MsoNormal" style="text-align:justify;background:white;"><span style="font-size:7.0pt;color:black;" lang="EN-US"> </span><span style="color:black;"></span></div>
<div class="yiv1321403335MsoNormal" style="text-align:justify;background:white;"><span style="color:black;" lang="EN-US">‘‘We have considered the fact that whereas Safaricom has met most of its licence obligations, its continued failure to meet the set Quality of Service standards
remains a concern that needs to be addressed,’’ said Mr. Wangusi.</span><span style="color:black;"></span></div>
<div class="yiv1321403335MsoNormal" style="text-align:justify;background:white;"><span style="font-size:7.0pt;color:black;" lang="EN-US"> </span><span style="color:black;"></span></div>
<div class="yiv1321403335MsoNormal" style="text-align:justify;background:white;"><span style="color:black;" lang="EN-US">Mr. Wangusi further said the three other mobile operators would pay the same amount for renewal of their licences for a further term of 10 year to ensure
parity and a level playing ground for all service providers in the sector. </span>
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<div class="yiv1321403335MsoNormal" style="text-align:justify;background:white;"><span style="font-size:7.0pt;color:black;" lang="EN-US"> </span><span style="color:black;"></span></div>
<div class="yiv1321403335MsoNormal" style="text-align:justify;background:white;"><span style="color:black;" lang="EN-US">At the sametime, the Director General said the spectrum assigned to the four mobile operators will be subjected to an auction after the expiry of the 10-year
renewal term. , </span><span style="color:black;"></span></div>
<div class="yiv1321403335MsoNormal" style="text-align:justify;background:white;"><span style="color:black;" lang="EN-US">The full statement of the Director General is available on the CCK website at
<a rel="nofollow" target="_blank" href="http://www.cck.go.ke/news/speeches/2013/Press_statement__Safaricom_licence.pdf">
http://www.cck.go.ke/news/speeches/2013/Press_statement__Safaricom_licence.pdf</a> </span><span style="color:black;"></span></div>
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<div class="yiv1321403335MsoNormal" style="background:white;"><b><span style="color:black;" lang="EN-US">Wambua</span></b><span style="color:black;"></span></div>
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