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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Walu,<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">Well presented!<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 should be worried, VERY worried, when the “referee” begins to fear the “player”!!
<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">Poor QoS is acknowledged, but NO tangible action!<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">I feel that CCK is “skirting around the problem”!!
<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">Edith<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"><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""> 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<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" 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.<o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span style="color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal" style="background:white"><b><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:black">From:</span></b><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:black"> Edith Adera <<a href="mailto:eadera@idrc.ca">eadera@idrc.ca</a>><br>
<b>To:</b> <a href="mailto:jwalu@yahoo.com">jwalu@yahoo.com</a> <br>
<b>Cc:</b> Consumer and Public Affairs <<a href="mailto:CPA@cck.go.ke">CPA@cck.go.ke</a>>; KICTAnet ICT Policy Discussions <<a 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"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span style="color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal" style="background:white"><span style="color:#1F497D">Wambua,</span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span style="color:#1F497D"> </span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span style="color:#1F497D">This is a very “generic” response!</span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span style="color:#1F497D"> </span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" 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"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span style="color:#1F497D"> </span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span style="color:#1F497D">OR are we dealing with a case of “regulatory capture”?</span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span style="color:#1F497D"> </span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span style="color:#1F497D">Edith</span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span style="color:#1F497D"> </span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><b><span lang="EN-US" style="font-size:10.0pt;color:black">From:</span></b><span lang="EN-US" style="font-size:10.0pt;color:black"> Wambua, Christopher
<a 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"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span style="color:black"> <o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span lang="EN-US" style="color:#1F497D">Edith/Listers</span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span lang="EN-US" style="color:#1F497D"> </span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span lang="EN-US" style="color:#1F497D">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"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span lang="EN-US" style="color:#1F497D"> </span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span lang="EN-US" style="color:#1F497D">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"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span lang="EN-US" style="color:#1F497D"> </span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span lang="EN-US" style="color:#1F497D">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"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span lang="EN-US" style="color:#1F497D"> </span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span lang="EN-US" style="color:#1F497D">Best regards,</span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span lang="EN-US" style="color:#1F497D"> </span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><b><span lang="EN-US" style="color:#1F497D">Christopher Wambua</span></b><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><b><span lang="EN-US" style="color:#1F497D">Manager – Communications</span></b><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><b><span lang="EN-US" style="color:#1F497D">Consumer and Public Affairs Department</span></b><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><b><span lang="EN-US" style="color:#1F497D">Communications Commission of Kenya</span></b><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><b><span lang="EN-US" style="color:#1F497D">P.O. Box 14448 NAIROBI 00800</span></b><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><b><span lang="EN-US" style="color:#1F497D">Tel: +254 20 4242209</span></b><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><b><span lang="EN-US" style="color:#1F497D"><a href="mailto:info@cck.go.ke" target="_blank"><span style="color:#1F497D">info@cck.go.ke</span></a></span></b><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><b><span lang="EN-US" style="color:#1F497D"><a href="http://www.cck.go.ke/" target="_blank"><span style="color:#1F497D">www.cck.go.ke</span></a></span></b><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><b><span lang="EN-US" style="color:#1F497D"> </span></b><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span lang="EN-US" style="color:#1F497D"> </span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><b><span lang="EN-US" style="font-size:10.0pt;color:black">From:</span></b><span lang="EN-US" style="font-size:10.0pt;color:black"> Edith Adera
<a href="mailto:[mailto:eadera@idrc.ca]" target="_blank">[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"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span lang="EN-US" style="color:black"> </span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span style="color:black">Dear Wambua,<o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span style="color:black"> <o:p></o:p></span></p>
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<p class="MsoNormal" 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!<o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span style="color:black"> <o:p></o:p></span></p>
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<p class="MsoNormal" 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"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span style="color:black"> <o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span style="color:black">I see you have suggested that renewal of license is subject to “ …..meeting
</span><span lang="EN-US" style="color:black">set minimum quality of service standards by June 2014.”</span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span lang="EN-US" style="color:black"> </span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span lang="EN-US" style="color:black">Why by June 2014?</span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span lang="EN-US" style="color:black"> </span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span lang="EN-US" style="color:black">We want good service NOW!</span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span lang="EN-US" style="color:black"> </span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span lang="EN-US" style="color:black">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"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span lang="EN-US" style="color:black"> </span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span lang="EN-US" style="color:black">Concerned Edith</span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span style="color:#1F497D"> </span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span style="color:#1F497D"> </span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><b><span lang="EN-US" style="font-size:10.0pt;color:black">From:</span></b><span lang="EN-US" style="font-size:10.0pt;color:black"> kictanet
<a href="mailto:[mailto:kictanet-bounces+eadera=idrc.ca@lists.kictanet.or.ke]" target="_blank">
[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"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span style="color:black"> <o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span lang="EN-US" style="color:black">Listers,
</span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span lang="EN-US" style="color:black"> </span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="text-align:justify;background:white"><b><u><span lang="EN-US" style="color:black">CCK to renew Safaricom’s licence
</span></u></b><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify;background:white"><span lang="EN-US" style="color:#002060"> </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify;background:white"><span lang="EN-US" style="color:black">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"><o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify;background:white"><span lang="EN-US" style="font-size:7.0pt;color:black"> </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify;background:white"><span lang="EN-US" style="color:black">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.
</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify;background:white"><span lang="EN-US" style="font-size:7.0pt;color:black"> </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify;background:white"><span lang="EN-US" style="color:black">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>
<span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify;background:white"><span lang="EN-US" style="font-size:7.0pt;color:black"> </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify;background:white"><span lang="EN-US" style="color:black">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>
<span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify;background:white"><span lang="EN-US" style="font-size:7.0pt;color:black"> </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify;background:white"><span lang="EN-US" style="color:black">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.
</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify;background:white"><span lang="EN-US" style="font-size:7.0pt;color:black"> </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify;background:white"><span lang="EN-US" style="color:black">‘‘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"><o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify;background:white"><span lang="EN-US" style="font-size:7.0pt;color:black"> </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify;background:white"><span lang="EN-US" style="color:black">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>
<span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify;background:white"><span lang="EN-US" style="font-size:7.0pt;color:black"> </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify;background:white"><span lang="EN-US" style="color:black">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"><o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify;background:white"><span lang="EN-US" style="color:black">The full statement of the Director General is available on the CCK website at
<a href="http://www.cck.go.ke/news/speeches/2013/Press_statement__Safaricom_licence.pdf" target="_blank">
http://www.cck.go.ke/news/speeches/2013/Press_statement__Safaricom_licence.pdf</a> </span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span lang="EN-US" style="color:black"> </span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><b><span lang="EN-US" style="color:black">Wambua</span></b><span style="color:black"><o:p></o:p></span></p>
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