<div dir="ltr"><div><div><div><div><div><div><div>This is an excerpt from the CGAP blog <a href="http://www.cgap.org/blog/10-myths-about-m-pesa-2014-update">http://www.cgap.org/blog/10-myths-about-m-pesa-2014-update</a>.<br><br>'More interesting still, Safaricom recently slashed P2P prices on
low-value transfers, while raising them at the high end. This was likely
a response to Equity’s planned launch of the FinServe MVNO, and <a href="http://www.cgap.org/blog/price-sensitivity-and-new-m-pesa-tariffs">may be based in part on evidence that consumers sending large values will be willing to pay more for the service</a>
than those sending low values. It also raises the question of how high
Safaricom’s margins are, if they were able to reduce prices by as much
as 67% overnight.'<br><br></div>Two points:<br>1. Safaricom was able to slash prices by up to 67% 'maybe' and 'allegedly' to forestall successful market entry by competition.<br></div>This is detrimental to consumers by denying them a chance at a maybe better service and opportunity to compare and make an informed decision. (Safaricom is perceived as the main stumbling block to finserve Africa's entry.<br><br></div>2. According to the same article in 2014, <br><br>' According to the Central Bank, <a target="_blank" href="http://www.gsma.com/mobilefordevelopment/new-infographic-mobile-money-and-the-digitisation-of-kenyas-retail-payments-systems">mobile money contributes to 6.59% of the total national payments throughput value</a>
(including both gross and retail) but a staggering 66.56% of the total
NPS throughput volume. This means that M-PESA is important, but does not
necessarily pose a systemic risk.'<br><br></div>If one player controls over two thirds of national payment, that may be an issue for concern, no? you all notice the hullabaloo when M-pesa is or Safaricom service is down as was the case recently in Karen and Lang'ata areas.<br><br></div>when the same behemoth controls police security communication apparatus, no matter how good and secure it may be, that IS putting all your eggs in one basket.<br><br></div>Safaricom runs mostly on Huawei infrastructure (I think) so if all those horror stories about the Chinese espionage and recent escapades by chinese in parts of Nairobi ( the 76 facing cyber crime charges) then there is a real case for concern.<br><br></div>and tehn there is the issue of mobile termination rates...<br></div><div class="gmail_extra"><br clear="all"><div><div class="gmail_signature"><div dir="ltr"><div><div dir="ltr"><div><div dir="ltr"><div><div><span style="border-collapse:collapse;font-family:arial,sans-serif;font-size:13px"><i><span style="font-family:'comic sans ms',sans-serif"><br></span></i></span></div><div dir="ltr"><span style="border-collapse:collapse;font-family:arial,sans-serif;font-size:13px"><i><span style="font-family:'comic sans ms',sans-serif"><div><b><i><span style="font-size:10.0pt;font-family:"Comic Sans MS";color:#888888">Every
morning in Africa, a gazelle wakes up, It knows it must run faster than
the fastest lion or
it will be killed. Every morning a lion wakes up, it knows it must
outrun the slowest gazelle or it will starve to death. It doesn't matter
whether you are a gazelle or a lion. When the sun comes up, you better
start running.</span></i></b><i><span style="font-size:10.0pt;font-family:"Comic Sans MS";color:#888888"><br>
<b>- In "The World is Flat" by Thomas L. Friedman.</b></span></i></div></span><span style="font-family:'comic sans ms',sans-serif;font-weight:bold"></span></i></span><div></div><div></div></div></div></div></div></div></div></div></div></div>
<br><div class="gmail_quote">On Fri, Feb 20, 2015 at 9:15 PM, Ali Hussein via kictanet <span dir="ltr"><<a href="mailto:kictanet@lists.kictanet.or.ke" target="_blank">kictanet@lists.kictanet.or.ke</a>></span> wrote:<br><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex"><div dir="auto"><div>Walu</div><div><br></div><div>I thought so too. Unfortunately can't disclose the author..But you can read between the lines...:)</div><div><br></div><div>And add 2+2 and come up with 5. :)<br><br><div><span><b>Ali Hussein</b></span></div><div><br></div><div style="font-family:Helvetica;font-size:medium">+254 770 906375 / 0713 601113</div><div style="font-family:Helvetica;font-size:medium"><br></div><div><p style="margin:0in 0in 0pt"><span style="background-color:rgba(255,255,255,0)">Twitter: @AliHKassim</span></p><span style="background-color:rgba(255,255,255,0)"><font></font></span><p style="margin:0in 0in 0pt"><span style="background-color:rgba(255,255,255,0)">Skype: abu-jomo</span></p><p style="margin:0in 0in 0pt"><span style="background-color:rgba(255,255,255,0)">LinkedIn: <a href="http://ke.linkedin.com/in/alihkassim" target="_blank">http://ke.linkedin.com/in/alihkassim</a><a href="http://ke.linkedin.com/in/alihkassim" target="_blank"><span style="text-decoration:none"></span></a></span></p><span style="background-color:rgba(255,255,255,0)"><font></font></span><p style="margin:0in 0in 0pt"></p><font><span style="background-color:rgba(255,255,255,0)">Blog: <a href="http://www.alyhussein.com/" target="_blank">www.alyhussein.com</a></span><br></font></div><div><span><br></span></div><div>"I fear the day technology will surpass human interaction. The world will have a generation of idiots". ~ Albert Einstein</div><div><span><br></span></div>Sent from my iPad</div><div><br>On Feb 20, 2015, at 6:37 PM, Walubengo J <<a href="mailto:jwalu@yahoo.com" target="_blank">jwalu@yahoo.com</a>> wrote:<br><br></div><blockquote type="cite"><div><div style="color:#000;background-color:#fff;font-family:HelveticaNeue,Helvetica Neue,Helvetica,Arial,Lucida Grande,sans-serif;font-size:16px"><div>Ali,</div><div><br></div><div dir="ltr">this is a great report. Who is the Publisher, Date published and might you have the PDF copy?</div><div dir="ltr">Market Failure is the central thrust here. Competition has failed to bring the market into equilibrium. <br></div><div dir="ltr"><br></div><div dir="ltr">Indeed the regulator has to strike. But when (Timming), how (Regulations or Competition Authority) and where (Application level (e.g MPESA)/Infrastructure level (e.g MVNO) or Corporate Level (e.g create mini-Safcoms) is a very delicate issue that can go horribly wrong.</div><div dir="ltr"><br></div><div dir="ltr">walu.<br></div><div><span></span></div><br> <div style="font-family:HelveticaNeue,Helvetica Neue,Helvetica,Arial,Lucida Grande,sans-serif;font-size:16px"> <div style="font-family:HelveticaNeue,Helvetica Neue,Helvetica,Arial,Lucida Grande,sans-serif;font-size:16px"> <div dir="ltr"> <hr size="1"> <font face="Arial"> <b><span style="font-weight:bold">From:</span></b> Ali Hussein via isoc <<a href="mailto:isoc@lists.my.co.ke" target="_blank">isoc@lists.my.co.ke</a>><br> <b><span style="font-weight:bold">To:</span></b> KICTAnet ICT Policy Discussions <<a href="mailto:kictanet@lists.kictanet.or.ke" target="_blank">kictanet@lists.kictanet.or.ke</a>>; ISOC Kenya Chapter <<a href="mailto:ISOC@lists.my.co.ke" target="_blank">ISOC@lists.my.co.ke</a>> <br> <b><span style="font-weight:bold">Sent:</span></b> Friday, February 20, 2015 6:17 PM<br> <b><span style="font-weight:bold">Subject:</span></b> [isoc_ke] Dominance issue in the Telco sector<br> </font> </div> <div><br><div><div><div><h1 style="text-indent:0px;margin:12pt 0in 3pt 0.3in"><span style="font-size:medium"><span style="font-weight:normal">Listers</span> </span></h1><h1 style="text-indent:0px;margin:12pt 0in 3pt 0.3in"><span style="font-size:medium">An analysis on the dominance issue with case studies across the world. </span></h1><h1 style="text-indent:0px;margin:12pt 0in 3pt 0.3in"><font size="3"><span><span lang="EN-GB"><br></span></span></font></h1><h1 style="text-indent:0px;margin:12pt 0in 3pt 0.3in"><font size="3"><span><span lang="EN-GB">1<span style="font-weight:normal"> </span></span><span lang="EN-GB">The Kenya Information and Communications (Amendment) Act 2013</span><span lang="EN-GB"></span></span></font></h1><div style="margin:3pt 0in"><span>The Kenya Information and Communications (Amendment) Act 2013 (the Act) states In Section 84W (3) that Communications Authority of Kenya (the Authority) may, by notice in the Gazette, declare a person or institution to be a “dominant telecommunications service provider” for the purposes of this Act.</span></div><div style="margin:3pt 0in"> </div><div style="margin:3pt 0in"><span>Section 84W (4) goes further to clarify what the Authority should consider in declaring an operator or institution dominant in subsection (4) as follow: -</span></div><div style="margin:3pt 0in"><span>(a) the market share of the telecommunications service provider being at least fifty percentum of the relevant gross market segment;</span></div><div style="margin:3pt 0in"><span>(b) the level of control over the communications infrastructure;</span></div><div style="margin:3pt 0in"><span>(c) the level of technological advancement of the telecommunications service provider;</span></div><div style="margin:3pt 0in"><span>(d) the scale of operations of the telecommunications service</span></div><div style="margin:3pt 0in"> </div><div style="margin:0in 0in 0.0001pt"><span>The Authority further developed Supplementary Legislation cited as the Kenya Information and Communications (Fair Competition and Equality of Treatment) Regulations, 2010 “the Regulations”. The Regulations indicate in section 7(1) that the Authority shall from time to time develop and publish, in the Kenya Gazette, guidelines to be followed when determining whether a licensee in a dominant market position in a specific communications market but this is not a precondition to determining an Institution as being dominant and therefore the Authority is mandated to declare an operator dominant under the current available Primary and secondary legislation.</span></div><div style="margin:0in 0in 0.0001pt"><span> </span></div><div style="margin:0in 0in 0.0001pt"><span>In regards to Dominance, the Regulations in Section 7 (2) and (3) further mentions additional criteria for deciding on dominance which include among others—</span></div><div style="margin:0in 0in 6pt"><span>(a) the degree of market concentration or the market share of the licensee, determined by reference to revenues, numbers of subscribers or volumes of sales;</span></div><div style="margin:0in 0in 6pt"><span>(b) the degree to which a licensee’s prices vary over time;</span></div><div style="margin:0in 0in 6pt"><span>(c) the ability of the licensee to maintain or erect barriers to entry to the market, including, by means of control of essential facilities, access to superior technology, privileged access to resources or capital markets or superior buying or negotiating position, amongst others;</span></div><div style="margin:0in 0in 6pt"><span>(d) the ability of the licensee to earn supernormal profits;</span></div><div style="margin:0in 0in 6pt"><span>(e) the global technology and commercial trends affecting market power;</span></div><div style="margin:0in 0in 6pt"><span>(f) the licensee’s power to make independent rate setting decisions;</span></div><div style="margin:0in 0in 6pt"><span>(g) the degree of product or service differentiation and sales promotion in the market; and</span></div><div style="margin:0in 0in 6pt"><span>(h) any other matters which the Commission may consider relevant.</span></div><div style="margin:0in 0in 0.0001pt"><span> </span></div><div style="margin:0in 0in 0.0001pt"><span>Section 7 (3) A licensee shall be in a dominant market position if;</span></div><div style="margin:0in 0in 6pt"><span>(a) it has the ability to materially raise prices without suffering a commensurate loss in service demand to other licensees;</span></div><div style="margin:0in 0in 6pt"><span>(b) it has the ability to erect or benefit from barriers to market entry;</span></div><div style="margin:0in 0in 6pt"><span>(c) the Commission has so determined a dominant market power report, after considering the circumstances and criteria set in these Regulations.</span></div><div style="margin:0in 0in 0.0001pt"><span> </span></div><div style="margin:0in 0in 0.0001pt"><span>In reference to the legal instruments cited above, the Authority has the mandate to declare an Institution dominant and our submission is dependent on these cited instruments to make a case for determining Safaricom as a being dominant in the Mobile Retail Voice, Data, SMS market and also in the Mobile Money Transfer markets.</span></div><div style="margin:3pt 0in"><span> </span></div><h1 style="text-indent:0px;margin:12pt 0in 3pt 0.3in"><font color="#000000" size="3"><span><a rel="nofollow" name="14ba8345cf6aff7b__Toc404930997"><span lang="EN-GB">2<span style="font-weight:normal"> </span></span><span lang="EN-GB">The Relevant Market Segment</span></a><span lang="EN-GB"></span></span></font></h1><div style="margin:3pt 0in 0.0001pt"> </div><div style="margin:3pt 0in 0.0001pt"><span>In line with best practice worldwide and also based on previous market study done by PWC in 2010 for the Authority (then CCK) it is clear and evident that the Retail Mobile Voice, Retail Mobile Data, Retail SMS and Mobile Money Transfer are relevant market segments. </span></div><div style="margin:3pt 0in 0.0001pt"><span>Our focus will therefore be on the Mobile Retail Voice, Data, SMS and Mobile Money Transfer market segments.</span></div><div style="margin:0in 0in 0.0001pt"><span> </span></div><h1 style="text-indent:0px;margin:12pt 0in 3pt 0.3in"><font color="#000000" size="3"><span><a rel="nofollow" name="14ba8345cf6aff7b__Toc404930998"><span lang="EN-GB">3<span style="font-weight:normal"> </span></span><span lang="EN-GB">Market Dominance definition in Kenya</span></a><span lang="EN-GB"></span></span></font></h1><div style="margin:3pt 0in"> </div><div style="margin:3pt 0in"><span>Market Dominance in Kenya can be determined based on the Act and the Regulations as identified above in item 2 above. Whereas globally there are other considerations known, we will use what is within the regulatory instruments available in Kenya. </span></div><div style="margin:3pt 0in"> </div><div style="margin:3pt 0in"><span>However for completeness, the Competition Act Chapter 504 Part C section 23. Also defines as dominance as follows: -</span></div><div style="margin:3pt 0in"> </div><div style="margin:3pt 0in"><span>Sections 23 (1) “dominant undertaking” means an undertaking which:</span></div><div style="margin:3pt 0in"><span>(a) produces, supplies, distributes or otherwise controls not less than one-half of the total goods of any description which are produced, supplied or distributed in Kenya or any substantial part thereof; or</span></div><div style="margin:3pt 0in"> </div><div style="margin:3pt 0in"><span>(b) provides or otherwise controls not less than one-half of the services which are rendered</span></div><div style="margin:3pt 0in"> </div><div style="margin:3pt 0in"><span>This definition by the Competition Act is in harmony with the definition in the Act as it refers to half of total good s which aligns to the 50% market share specified in the Act.</span></div><div style="margin:3pt 0in"> </div><div style="margin:3pt 0in"><span>Our submission will therefore concentrate on the criteria in the Act and Regulations (which are yet to be amended in line with the Act) together with the Competition Act.</span></div><h1 style="text-indent:0px;margin:12pt 0in 3pt 0.3in"><font color="#000000" size="3"><span><a rel="nofollow" name="14ba8345cf6aff7b__Toc404930999"><span lang="EN-GB">4<span style="font-weight:normal"> </span></span><span lang="EN-GB">A case for Declaring Safaricom Dominant</span></a><span lang="EN-GB"></span></span></font></h1><h2 style="text-indent:0px;margin:6pt 0in 6pt 0.4in"><font color="#000000" size="3"><span><a rel="nofollow" name="14ba8345cf6aff7b__Toc404931000">4.1<span style="font-weight:normal"> </span>Degree of Market Concentration or Market Share</a></span></font></h2><div style="margin:3pt 0in"><span>The Commission through its consultation paper on the intention to declare regulated services, found that there was high market shares, concentration ratios and Herfindahl-Hirschman Index (HHI) 5,230 on Subscriber base and 6,758 on revenues against best practice of 1,800 which was a clear demonstration of lack of effective Competition in the mobile voice termination market and hence the need for regulatory intervention to correct market failure. While we appreciate that the market shares, concentration ratios and HH index might have changed since the consultation was done, we strongly feel that the mobile voice market is not effectively competitive and hence the need for regulatory intervention by the Commission. The current HHI based on number of subscribers remains well over 4000 which is still double the threshold for a concentrated market.</span></div><div style="margin:3pt 0in"> </div><div style="margin:3pt 0in"><span>The HHI thresholds in US and EU are defined as follows: -</span></div><ul style="margin-bottom:0in;margin-top:0in" type="disc"><li style="margin:0in 0in 0.0001pt"><span>HHI below 1000 – a competitive market. There are no dominant competitors in this market.</span></li><li style="margin:0in 0in 0.0001pt"><span>HHI between 1000 and 1800 – a moderately concentrated market</span></li><li style="margin:0in 0in 0.0001pt"><span>HHI above 1800 – a concentrated market. There are one or more dominant competitors in this market.</span></li></ul><div style="margin:3pt 0in"> </div><div style="margin:3pt 0in"><span>This HHI though not reflected as a requirement to determine dominance in the Kenya goes to reinforce our submission that Safaricom is dominant.</span></div><div style="margin:3pt 0in"> </div><div style="margin:3pt 0in"><span>Safaricom’s market share has remained over 63% on the basis of mobile subscribers as can be seen from Table 2 and 78 % in traffic volumes for the period of January to March 2014. In terms of revenues it is about 80%. These figures are above the threshold that would lead to a rebuttable presumption of dominance. In established competition cases and also in line with the Competition Act chapter 504 in Kenya, sustained market shares of over 50% gives rise to a rebuttable presumption of dominance, while market shares of over 40% are suggestive of possibility of dominance. On the basis of market share alone, Safaricom holds a position of Dominance in retail voice, Retail Data, SMS and Mobile Money market and should be declared dominant. As per data provided below and also slide 30 in SFC H1 ’15 presentation, SFC holds: 68%, 78%, 97% and 72% market shares in subscribers, voice minutes, SMS traffic and data users. Moreover, they control 88% of total revenues of the market. (See extracts below)</span></div><div style="margin:3pt 0in"> </div><div style="margin:3pt 0in"><span>In summary, Safaricom has retained highest market shares as follows: -</span></div><ul style="margin-bottom:0in;margin-top:0in" type="disc"><li style="margin:0in 0in 0.0001pt"><span>Market share by Subscription (voice) 80% in 2010 to 68% in 2014</span></li><li style="margin:0in 0in 0.0001pt"><span>Market share by Subscription (Data) 99% in 2010 to 71% in 2014</span></li><li style="margin:0in 0in 0.0001pt"><span>Market Share by Voice Minutes (Voice) 80% in 2012 to 79% in 2014</span></li><li style="margin:0in 0in 0.0001pt"><span>Market Share by number of SMS (SMS) 84% in 2012 to 96% in 2014</span></li><li style="margin:0in 0in 0.0001pt"><span>Market Share by Revenues (Voice) 86% in 2012 to 88% in 2014 well over 80% market share in each Mobile voice, SMS and Mobile Data</span></li></ul><div style="margin:3pt 0in"> </div><h3 style="text-indent:0px;margin:12pt 0in 3pt 0.5in"><font color="#000000" size="3"><span><a rel="nofollow" name="14ba8345cf6aff7b__Toc404931001">4.1.1<span style="font-weight:normal"> </span>Market Shares by Subscriptions</a></span></font></h3><div style="margin:3pt 0in"><span><b><u>Number Mobile Subscriptions per Operator in Millions</u></b></span></div><table style="width:455.4pt;border-collapse:collapse;border:none" border="1" cellpadding="0" cellspacing="0" width="607"><tbody><tr style="height:15pt"><td style="width:63.9pt;border-style:solid;border-color:rgb(247,150,70);border-width:1pt 1pt 2.25pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="85"><div style="margin:0in 0in 0.0001pt"><b>Month</b></div></td><td style="width:87.1pt;border-style:solid solid solid none;border-top-color:rgb(247,150,70);border-top-width:1pt;border-bottom-color:rgb(247,150,70);border-bottom-width:2.25pt;border-right-color:rgb(247,150,70);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="116"><div style="margin:0in 0in 0.0001pt"><b>Safaricom Ltd</b></div></td><td style="width:59.85pt;border-style:solid solid solid none;border-top-color:rgb(247,150,70);border-top-width:1pt;border-bottom-color:rgb(247,150,70);border-bottom-width:2.25pt;border-right-color:rgb(247,150,70);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="80"><div style="margin:0in 0in 0.0001pt"><b>Airtel Networks Kenya Ltd</b></div></td><td style="width:73.55pt;border-style:solid solid solid none;border-top-color:rgb(247,150,70);border-top-width:1pt;border-bottom-color:rgb(247,150,70);border-bottom-width:2.25pt;border-right-color:rgb(247,150,70);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="98"><div style="margin:0in 0in 0.0001pt"><b>Telkom Kenya Ltd</b></div></td><td style="width:85.5pt;border-style:solid solid solid none;border-top-color:rgb(247,150,70);border-top-width:1pt;border-bottom-color:rgb(247,150,70);border-bottom-width:2.25pt;border-right-color:rgb(247,150,70);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="114"><div style="margin:0in 0in 0.0001pt"><b>Essar Telecom (K) Ltd</b></div></td><td style="width:85.5pt;border-style:solid solid solid none;border-top-color:rgb(247,150,70);border-top-width:1pt;border-bottom-color:rgb(247,150,70);border-bottom-width:2.25pt;border-right-color:rgb(247,150,70);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="114"><div style="margin:0in 0in 0.0001pt"><b>Totals</b></div></td></tr><tr style="height:15pt"><td style="width:63.9pt;border-style:none solid solid;border-right-color:rgb(247,150,70);border-bottom-color:rgb(247,150,70);border-left-color:rgb(247,150,70);border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="85"><div style="margin:0in 0in 0.0001pt"><b>2009/10</b></div></td><td style="width:87.1pt;border-style:none solid solid none;border-bottom-color:rgb(247,150,70);border-bottom-width:1pt;border-right-color:rgb(247,150,70);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="116"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>16.24 </span></div></td><td style="width:59.85pt;border-style:none solid solid none;border-bottom-color:rgb(247,150,70);border-bottom-width:1pt;border-right-color:rgb(247,150,70);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="80"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>1.83 </span></div></td><td style="width:73.55pt;border-style:none solid solid none;border-bottom-color:rgb(247,150,70);border-bottom-width:1pt;border-right-color:rgb(247,150,70);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="98"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>0.55 </span></div></td><td style="width:85.5pt;border-style:none solid solid none;border-bottom-color:rgb(247,150,70);border-bottom-width:1pt;border-right-color:rgb(247,150,70);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="114"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>1.49 </span></div></td><td style="width:85.5pt;border-style:none solid solid none;border-bottom-color:rgb(247,150,70);border-bottom-width:1pt;border-right-color:rgb(247,150,70);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="114"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>20.12 </span></div></td></tr><tr style="height:15pt"><td style="width:63.9pt;border-style:none solid solid;border-right-color:rgb(247,150,70);border-bottom-color:rgb(247,150,70);border-left-color:rgb(247,150,70);border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="85"><div style="margin:0in 0in 0.0001pt"><b>2010/11</b></div></td><td style="width:87.1pt;border-style:none solid solid none;border-bottom-color:rgb(247,150,70);border-bottom-width:1pt;border-right-color:rgb(247,150,70);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="116"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>17.35 </span></div></td><td style="width:59.85pt;border-style:none solid solid none;border-bottom-color:rgb(247,150,70);border-bottom-width:1pt;border-right-color:rgb(247,150,70);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="80"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>3.61 </span></div></td><td style="width:73.55pt;border-style:none solid solid none;border-bottom-color:rgb(247,150,70);border-bottom-width:1pt;border-right-color:rgb(247,150,70);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="98"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>2.73 </span></div></td><td style="width:85.5pt;border-style:none solid solid none;border-bottom-color:rgb(247,150,70);border-bottom-width:1pt;border-right-color:rgb(247,150,70);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="114"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>1.58 </span></div></td><td style="width:85.5pt;border-style:none solid solid none;border-bottom-color:rgb(247,150,70);border-bottom-width:1pt;border-right-color:rgb(247,150,70);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="114"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>25.28 </span></div></td></tr><tr style="height:15pt"><td style="width:63.9pt;border-style:none solid solid;border-right-color:rgb(247,150,70);border-bottom-color:rgb(247,150,70);border-left-color:rgb(247,150,70);border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="85"><div style="margin:0in 0in 0.0001pt"><b>2011/12</b></div></td><td style="width:87.1pt;border-style:none solid solid none;border-bottom-color:rgb(247,150,70);border-bottom-width:1pt;border-right-color:rgb(247,150,70);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="116"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>19.01 </span></div></td><td style="width:59.85pt;border-style:none solid solid none;border-bottom-color:rgb(247,150,70);border-bottom-width:1pt;border-right-color:rgb(247,150,70);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="80"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>4.91 </span></div></td><td style="width:73.55pt;border-style:none solid solid none;border-bottom-color:rgb(247,150,70);border-bottom-width:1pt;border-right-color:rgb(247,150,70);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="98"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>3.12 </span></div></td><td style="width:85.5pt;border-style:none solid solid none;border-bottom-color:rgb(247,150,70);border-bottom-width:1pt;border-right-color:rgb(247,150,70);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="114"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>2.66 </span></div></td><td style="width:85.5pt;border-style:none solid solid none;border-bottom-color:rgb(247,150,70);border-bottom-width:1pt;border-right-color:rgb(247,150,70);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="114"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>29.70 </span></div></td></tr><tr style="height:15pt"><td style="width:63.9pt;border-style:none solid solid;border-right-color:rgb(247,150,70);border-bottom-color:rgb(247,150,70);border-left-color:rgb(247,150,70);border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="85"><div style="margin:0in 0in 0.0001pt"><b>2012/13</b></div></td><td style="width:87.1pt;border-style:none solid solid none;border-bottom-color:rgb(247,150,70);border-bottom-width:1pt;border-right-color:rgb(247,150,70);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="116"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>20.15 </span></div></td><td style="width:59.85pt;border-style:none solid solid none;border-bottom-color:rgb(247,150,70);border-bottom-width:1pt;border-right-color:rgb(247,150,70);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="80"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>5.22 </span></div></td><td style="width:73.55pt;border-style:none solid solid none;border-bottom-color:rgb(247,150,70);border-bottom-width:1pt;border-right-color:rgb(247,150,70);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="98"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>2.13 </span></div></td><td style="width:85.5pt;border-style:none solid solid none;border-bottom-color:rgb(247,150,70);border-bottom-width:1pt;border-right-color:rgb(247,150,70);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="114"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>3.05 </span></div></td><td style="width:85.5pt;border-style:none solid solid none;border-bottom-color:rgb(247,150,70);border-bottom-width:1pt;border-right-color:rgb(247,150,70);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="114"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>30.55 </span></div></td></tr><tr style="height:15pt"><td style="width:63.9pt;border-style:none solid solid;border-right-color:rgb(247,150,70);border-bottom-color:rgb(247,150,70);border-left-color:rgb(247,150,70);border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="85"><div style="margin:0in 0in 0.0001pt"><b>2013/14</b></div></td><td style="width:87.1pt;border-style:none solid solid none;border-bottom-color:rgb(247,150,70);border-bottom-width:1pt;border-right-color:rgb(247,150,70);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="116"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>21.93 </span></div></td><td style="width:59.85pt;border-style:none solid solid none;border-bottom-color:rgb(247,150,70);border-bottom-width:1pt;border-right-color:rgb(247,150,70);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="80"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>5.07 </span></div></td><td style="width:73.55pt;border-style:none solid solid none;border-bottom-color:rgb(247,150,70);border-bottom-width:1pt;border-right-color:rgb(247,150,70);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="98"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>2.69 </span></div></td><td style="width:85.5pt;border-style:none solid solid none;border-bottom-color:rgb(247,150,70);border-bottom-width:1pt;border-right-color:rgb(247,150,70);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="114"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>2.56 </span></div></td><td style="width:85.5pt;border-style:none solid solid none;border-bottom-color:rgb(247,150,70);border-bottom-width:1pt;border-right-color:rgb(247,150,70);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="114"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>32.25 </span></div></td></tr></tbody></table><div style="margin:3pt 0in"><span>Table 1: Number of mobile subscriptions since 2010 to Jun 2014</span></div><div style="margin:3pt 0in"><i>Source: Extracted from CCK/CA published reports</i></div><div style="margin:3pt 0in"> </div><div style="margin:0in 0in 0.0001pt"><span>Market Share by Subscriptions since 2010 </span></div><table style="width:455.4pt;border-collapse:collapse;border:none" border="1" cellpadding="0" cellspacing="0" width="607"><tbody><tr style="height:15pt"><td style="width:59.25pt;border-style:solid;border-color:rgb(192,80,77);border-width:1pt 1pt 2.25pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="79"><div style="margin:0in 0in 0.0001pt"><b>Month</b></div></td><td style="width:90.15pt;border-style:solid solid solid none;border-top-color:rgb(192,80,77);border-top-width:1pt;border-bottom-color:rgb(192,80,77);border-bottom-width:2.25pt;border-right-color:rgb(192,80,77);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="120"><div style="margin:0in 0in 0.0001pt"><b>Safaricom Ltd</b></div></td><td style="width:63pt;border-style:solid solid solid none;border-top-color:rgb(192,80,77);border-top-width:1pt;border-bottom-color:rgb(192,80,77);border-bottom-width:2.25pt;border-right-color:rgb(192,80,77);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="84"><div style="margin:0in 0in 0.0001pt"><b>Airtel Networks Kenya Ltd</b></div></td><td style="width:1in;border-style:solid solid solid none;border-top-color:rgb(192,80,77);border-top-width:1pt;border-bottom-color:rgb(192,80,77);border-bottom-width:2.25pt;border-right-color:rgb(192,80,77);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="96"><div style="margin:0in 0in 0.0001pt"><b>Telkom Kenya Ltd</b></div></td><td style="width:85.5pt;border-style:solid solid solid none;border-top-color:rgb(192,80,77);border-top-width:1pt;border-bottom-color:rgb(192,80,77);border-bottom-width:2.25pt;border-right-color:rgb(192,80,77);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="114"><div style="margin:0in 0in 0.0001pt"><b>Essar Telecom (K) Ltd</b></div></td><td style="width:85.5pt;border-style:solid solid solid none;border-top-color:rgb(192,80,77);border-top-width:1pt;border-bottom-color:rgb(192,80,77);border-bottom-width:2.25pt;border-right-color:rgb(192,80,77);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="114"><div style="margin:0in 0in 0.0001pt"><b>Totals</b></div></td></tr><tr style="height:15pt"><td style="width:59.25pt;border-style:none solid solid;border-right-color:rgb(192,80,77);border-bottom-color:rgb(192,80,77);border-left-color:rgb(192,80,77);border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="79"><div style="margin:0in 0in 0.0001pt"><b>2009/10</b></div></td><td style="width:90.15pt;border-style:none solid solid none;border-bottom-color:rgb(192,80,77);border-bottom-width:1pt;border-right-color:rgb(192,80,77);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="120"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>80.7%</span></div></td><td style="width:63pt;border-style:none solid solid none;border-bottom-color:rgb(192,80,77);border-bottom-width:1pt;border-right-color:rgb(192,80,77);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="84"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>9.1%</span></div></td><td style="width:1in;border-style:none solid solid none;border-bottom-color:rgb(192,80,77);border-bottom-width:1pt;border-right-color:rgb(192,80,77);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="96"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>2.7%</span></div></td><td style="width:85.5pt;border-style:none solid solid none;border-bottom-color:rgb(192,80,77);border-bottom-width:1pt;border-right-color:rgb(192,80,77);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="114"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>7.4%</span></div></td><td style="width:85.5pt;border-style:none solid solid none;border-bottom-color:rgb(192,80,77);border-bottom-width:1pt;border-right-color:rgb(192,80,77);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="114"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>100%</span></div></td></tr><tr style="height:15pt"><td style="width:59.25pt;border-style:none solid solid;border-right-color:rgb(192,80,77);border-bottom-color:rgb(192,80,77);border-left-color:rgb(192,80,77);border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="79"><div style="margin:0in 0in 0.0001pt"><b>2010/11</b></div></td><td style="width:90.15pt;border-style:none solid solid none;border-bottom-color:rgb(192,80,77);border-bottom-width:1pt;border-right-color:rgb(192,80,77);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="120"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>68.6%</span></div></td><td style="width:63pt;border-style:none solid solid none;border-bottom-color:rgb(192,80,77);border-bottom-width:1pt;border-right-color:rgb(192,80,77);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="84"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>14.3%</span></div></td><td style="width:1in;border-style:none solid solid none;border-bottom-color:rgb(192,80,77);border-bottom-width:1pt;border-right-color:rgb(192,80,77);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="96"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>10.8%</span></div></td><td style="width:85.5pt;border-style:none solid solid none;border-bottom-color:rgb(192,80,77);border-bottom-width:1pt;border-right-color:rgb(192,80,77);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="114"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>6.3%</span></div></td><td style="width:85.5pt;border-style:none solid solid none;border-bottom-color:rgb(192,80,77);border-bottom-width:1pt;border-right-color:rgb(192,80,77);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="114"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>100%</span></div></td></tr><tr style="height:15pt"><td style="width:59.25pt;border-style:none solid solid;border-right-color:rgb(192,80,77);border-bottom-color:rgb(192,80,77);border-left-color:rgb(192,80,77);border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="79"><div style="margin:0in 0in 0.0001pt"><b>2011/12</b></div></td><td style="width:90.15pt;border-style:none solid solid none;border-bottom-color:rgb(192,80,77);border-bottom-width:1pt;border-right-color:rgb(192,80,77);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="120"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>64.0%</span></div></td><td style="width:63pt;border-style:none solid solid none;border-bottom-color:rgb(192,80,77);border-bottom-width:1pt;border-right-color:rgb(192,80,77);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="84"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>16.5%</span></div></td><td style="width:1in;border-style:none solid solid none;border-bottom-color:rgb(192,80,77);border-bottom-width:1pt;border-right-color:rgb(192,80,77);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="96"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>10.5%</span></div></td><td style="width:85.5pt;border-style:none solid solid none;border-bottom-color:rgb(192,80,77);border-bottom-width:1pt;border-right-color:rgb(192,80,77);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="114"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>9.0%</span></div></td><td style="width:85.5pt;border-style:none solid solid none;border-bottom-color:rgb(192,80,77);border-bottom-width:1pt;border-right-color:rgb(192,80,77);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="114"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>100%</span></div></td></tr><tr style="height:15pt"><td style="width:59.25pt;border-style:none solid solid;border-right-color:rgb(192,80,77);border-bottom-color:rgb(192,80,77);border-left-color:rgb(192,80,77);border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="79"><div style="margin:0in 0in 0.0001pt"><b>2012/13</b></div></td><td style="width:90.15pt;border-style:none solid solid none;border-bottom-color:rgb(192,80,77);border-bottom-width:1pt;border-right-color:rgb(192,80,77);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="120"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>65.9%</span></div></td><td style="width:63pt;border-style:none solid solid none;border-bottom-color:rgb(192,80,77);border-bottom-width:1pt;border-right-color:rgb(192,80,77);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="84"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>17.1%</span></div></td><td style="width:1in;border-style:none solid solid none;border-bottom-color:rgb(192,80,77);border-bottom-width:1pt;border-right-color:rgb(192,80,77);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="96"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>7.0%</span></div></td><td style="width:85.5pt;border-style:none solid solid none;border-bottom-color:rgb(192,80,77);border-bottom-width:1pt;border-right-color:rgb(192,80,77);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="114"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>10.0%</span></div></td><td style="width:85.5pt;border-style:none solid solid none;border-bottom-color:rgb(192,80,77);border-bottom-width:1pt;border-right-color:rgb(192,80,77);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="114"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>100%</span></div></td></tr><tr style="height:15pt"><td style="width:59.25pt;border-style:none solid solid;border-right-color:rgb(192,80,77);border-bottom-color:rgb(192,80,77);border-left-color:rgb(192,80,77);border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="79"><div style="margin:0in 0in 0.0001pt"><b>2013/14</b></div></td><td style="width:90.15pt;border-style:none solid solid none;border-bottom-color:rgb(192,80,77);border-bottom-width:1pt;border-right-color:rgb(192,80,77);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="120"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>68.0%</span></div></td><td style="width:63pt;border-style:none solid solid none;border-bottom-color:rgb(192,80,77);border-bottom-width:1pt;border-right-color:rgb(192,80,77);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="84"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>15.7%</span></div></td><td style="width:1in;border-style:none solid solid none;border-bottom-color:rgb(192,80,77);border-bottom-width:1pt;border-right-color:rgb(192,80,77);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="96"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>8.3%</span></div></td><td style="width:85.5pt;border-style:none solid solid none;border-bottom-color:rgb(192,80,77);border-bottom-width:1pt;border-right-color:rgb(192,80,77);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="114"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>8.0%</span></div></td><td style="width:85.5pt;border-style:none solid solid none;border-bottom-color:rgb(192,80,77);border-bottom-width:1pt;border-right-color:rgb(192,80,77);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="114"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>100%</span></div></td></tr></tbody></table><div style="margin:3pt 0in"><span>Table 2: Market Share by mobile subscriptions since 2010</span></div><div style="margin:0in 0in 0.0001pt"><span><i>Source: Extracted from CCK/CA published reports</i></span></div><div style="margin:0in 0in 0.0001pt"> </div><div style="margin:3pt 0in"><span><img width="481" height="289"><i></i></span></div><div style="margin:3pt 0in"><i>Source: Derived from Table 1 above.</i></div><div style="margin:3pt 0in"><span>Chart 2: Market Share by Number of Subscriptions</span></div><div style="margin:3pt 0in"> </div><div style="margin:3pt 0in"><span>Mobile Data Subscriptions by Operator</span></div><table style="width:454.85pt;border-collapse:collapse;border:none" border="1" cellpadding="0" cellspacing="0" width="606"><tbody><tr style="height:15pt"><td style="width:150.85pt;border-style:solid;border-color:rgb(79,129,189);border-width:1pt 1pt 2.25pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="201"><div style="margin:0in 0in 0.0001pt"><b>Operator</b></div></td><td style="width:56pt;border-style:solid solid solid none;border-top-color:rgb(79,129,189);border-top-width:1pt;border-bottom-color:rgb(79,129,189);border-bottom-width:2.25pt;border-right-color:rgb(79,129,189);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="75"><div style="margin:0in 0in 0.0001pt"><b>2009/10</b></div></td><td style="width:56pt;border-style:solid solid solid none;border-top-color:rgb(79,129,189);border-top-width:1pt;border-bottom-color:rgb(79,129,189);border-bottom-width:2.25pt;border-right-color:rgb(79,129,189);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="75"><div style="margin:0in 0in 0.0001pt"><b>2010/11</b></div></td><td style="width:56pt;border-style:solid solid solid none;border-top-color:rgb(79,129,189);border-top-width:1pt;border-bottom-color:rgb(79,129,189);border-bottom-width:2.25pt;border-right-color:rgb(79,129,189);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="75"><div style="margin:0in 0in 0.0001pt"><b>2011/12</b></div></td><td style="width:75pt;border-style:solid solid solid none;border-top-color:rgb(79,129,189);border-top-width:1pt;border-bottom-color:rgb(79,129,189);border-bottom-width:2.25pt;border-right-color:rgb(79,129,189);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="100"><div style="margin:0in 0in 0.0001pt"><b>2012/13</b></div></td><td style="width:61pt;border-style:solid solid solid none;border-top-color:rgb(79,129,189);border-top-width:1pt;border-bottom-color:rgb(79,129,189);border-bottom-width:2.25pt;border-right-color:rgb(79,129,189);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="81"><div style="margin:0in 0in 0.0001pt"><b>2013/14</b></div></td></tr><tr style="height:15pt"><td style="width:150.85pt;border-style:none solid solid;border-right-color:rgb(79,129,189);border-bottom-color:rgb(79,129,189);border-left-color:rgb(79,129,189);border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="201"><div style="margin:0in 0in 0.0001pt"><b>Safaricom Ltd</b></div></td><td style="width:56pt;border-style:none solid solid none;border-bottom-color:rgb(79,129,189);border-bottom-width:1pt;border-right-color:rgb(79,129,189);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="75"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>2,959,906 </span></div></td><td style="width:56pt;border-style:none solid solid none;border-bottom-color:rgb(79,129,189);border-bottom-width:1pt;border-right-color:rgb(79,129,189);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="75"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>3,584,283 </span></div></td><td style="width:56pt;border-style:none solid solid none;border-bottom-color:rgb(79,129,189);border-bottom-width:1pt;border-right-color:rgb(79,129,189);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="75"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>5,262,307 </span></div></td><td style="width:75pt;border-style:none solid solid none;border-bottom-color:rgb(79,129,189);border-bottom-width:1pt;border-right-color:rgb(79,129,189);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="100"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>9,332,995 </span></div></td><td style="width:61pt;border-style:none solid solid none;border-bottom-color:rgb(79,129,189);border-bottom-width:1pt;border-right-color:rgb(79,129,189);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="81"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>9,974,377 </span></div></td></tr><tr style="height:15pt"><td style="width:150.85pt;border-style:none solid solid;border-right-color:rgb(79,129,189);border-bottom-color:rgb(79,129,189);border-left-color:rgb(79,129,189);border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="201"><div style="margin:0in 0in 0.0001pt"><b>Airtel Networks Kenya Ltd</b></div></td><td style="width:56pt;border-style:none solid solid none;border-bottom-color:rgb(79,129,189);border-bottom-width:1pt;border-right-color:rgb(79,129,189);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="75"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>10,000 </span></div></td><td style="width:56pt;border-style:none solid solid none;border-bottom-color:rgb(79,129,189);border-bottom-width:1pt;border-right-color:rgb(79,129,189);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="75"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>496,509 </span></div></td><td style="width:56pt;border-style:none solid solid none;border-bottom-color:rgb(79,129,189);border-bottom-width:1pt;border-right-color:rgb(79,129,189);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="75"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>1,074,764 </span></div></td><td style="width:75pt;border-style:none solid solid none;border-bottom-color:rgb(79,129,189);border-bottom-width:1pt;border-right-color:rgb(79,129,189);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="100"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>1,597,481 </span></div></td><td style="width:61pt;border-style:none solid solid none;border-bottom-color:rgb(79,129,189);border-bottom-width:1pt;border-right-color:rgb(79,129,189);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="81"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>1,880,644 </span></div></td></tr><tr style="height:15pt"><td style="width:150.85pt;border-style:none solid solid;border-right-color:rgb(79,129,189);border-bottom-color:rgb(79,129,189);border-left-color:rgb(79,129,189);border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="201"><div style="margin:0in 0in 0.0001pt"><b>Telkom Kenya Ltd</b></div></td><td style="width:56pt;border-style:none solid solid none;border-bottom-color:rgb(79,129,189);border-bottom-width:1pt;border-right-color:rgb(79,129,189);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="75"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>- </span></div></td><td style="width:56pt;border-style:none solid solid none;border-bottom-color:rgb(79,129,189);border-bottom-width:1pt;border-right-color:rgb(79,129,189);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="75"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>108,926 </span></div></td><td style="width:56pt;border-style:none solid solid none;border-bottom-color:rgb(79,129,189);border-bottom-width:1pt;border-right-color:rgb(79,129,189);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="75"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>674,255 </span></div></td><td style="width:75pt;border-style:none solid solid none;border-bottom-color:rgb(79,129,189);border-bottom-width:1pt;border-right-color:rgb(79,129,189);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="100"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>795,513 </span></div></td><td style="width:61pt;border-style:none solid solid none;border-bottom-color:rgb(79,129,189);border-bottom-width:1pt;border-right-color:rgb(79,129,189);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="81"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>1,574,168 </span></div></td></tr><tr style="height:15pt"><td style="width:150.85pt;border-style:none solid solid;border-right-color:rgb(79,129,189);border-bottom-color:rgb(79,129,189);border-left-color:rgb(79,129,189);border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="201"><div style="margin:0in 0in 0.0001pt"><b>Essar Telecom (K) Ltd</b></div></td><td style="width:56pt;border-style:none solid solid none;border-bottom-color:rgb(79,129,189);border-bottom-width:1pt;border-right-color:rgb(79,129,189);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="75"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>- </span></div></td><td style="width:56pt;border-style:none solid solid none;border-bottom-color:rgb(79,129,189);border-bottom-width:1pt;border-right-color:rgb(79,129,189);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="75"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>- </span></div></td><td style="width:56pt;border-style:none solid solid none;border-bottom-color:rgb(79,129,189);border-bottom-width:1pt;border-right-color:rgb(79,129,189);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="75"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>644,250 </span></div></td><td style="width:75pt;border-style:none solid solid none;border-bottom-color:rgb(79,129,189);border-bottom-width:1pt;border-right-color:rgb(79,129,189);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="100"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>614,016 </span></div></td><td style="width:61pt;border-style:none solid solid none;border-bottom-color:rgb(79,129,189);border-bottom-width:1pt;border-right-color:rgb(79,129,189);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="81"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>501,505 </span></div></td></tr><tr style="height:15pt"><td style="width:150.85pt;border-style:none solid solid;border-right-color:rgb(79,129,189);border-bottom-color:rgb(79,129,189);border-left-color:rgb(79,129,189);border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="201"><div style="margin:0in 0in 0.0001pt"><b>Totals</b></div></td><td style="width:56pt;border-style:none solid solid none;border-bottom-color:rgb(79,129,189);border-bottom-width:1pt;border-right-color:rgb(79,129,189);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="75"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>2,969,906 </span></div></td><td style="width:56pt;border-style:none solid solid none;border-bottom-color:rgb(79,129,189);border-bottom-width:1pt;border-right-color:rgb(79,129,189);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="75"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>4,189,718 </span></div></td><td style="width:56pt;border-style:none solid solid none;border-bottom-color:rgb(79,129,189);border-bottom-width:1pt;border-right-color:rgb(79,129,189);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="75"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>7,655,576 </span></div></td><td style="width:75pt;border-style:none solid solid none;border-bottom-color:rgb(79,129,189);border-bottom-width:1pt;border-right-color:rgb(79,129,189);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="100"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>12,340,005 </span></div></td><td style="width:61pt;border-style:none solid solid none;border-bottom-color:rgb(79,129,189);border-bottom-width:1pt;border-right-color:rgb(79,129,189);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="81"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>13,930,694 </span></div></td></tr></tbody></table><div style="margin:3pt 0in"><i>Source: Compiled from CCK/CA published reports</i></div><div style="margin:3pt 0in"> </div><div style="margin:3pt 0in"><span>Mobile Data Market Shares by Operator by Number of Subscriptions</span></div><table style="width:452.85pt;border-collapse:collapse;border:none" border="1" cellpadding="0" cellspacing="0" width="604"><tbody><tr style="height:15pt"><td style="width:149.4pt;border-style:solid;border-color:black;border-width:1pt 1pt 2.25pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="199"><div style="margin:0in 0in 0.0001pt"><b>Operator</b></div></td><td style="width:58.5pt;border-style:solid solid solid none;border-top-color:black;border-top-width:1pt;border-bottom-color:black;border-bottom-width:2.25pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="78"><div style="margin:0in 0in 0.0001pt"><b>2009/10</b></div></td><td style="width:52.95pt;border-style:solid solid solid none;border-top-color:black;border-top-width:1pt;border-bottom-color:black;border-bottom-width:2.25pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="71"><div style="margin:0in 0in 0.0001pt"><b>2010/11</b></div></td><td style="width:56pt;border-style:solid solid solid none;border-top-color:black;border-top-width:1pt;border-bottom-color:black;border-bottom-width:2.25pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="75"><div style="margin:0in 0in 0.0001pt"><b>2011/12</b></div></td><td style="width:75pt;border-style:solid solid solid none;border-top-color:black;border-top-width:1pt;border-bottom-color:black;border-bottom-width:2.25pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="100"><div style="margin:0in 0in 0.0001pt"><b>2012/13</b></div></td><td style="width:61pt;border-style:solid solid solid none;border-top-color:black;border-top-width:1pt;border-bottom-color:black;border-bottom-width:2.25pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="81"><div style="margin:0in 0in 0.0001pt"><b>2013/14</b></div></td></tr><tr style="height:15pt"><td style="width:149.4pt;border-style:none solid solid;border-right-color:black;border-bottom-color:black;border-left-color:black;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="199"><div style="margin:0in 0in 0.0001pt"><b>Safaricom Ltd</b></div></td><td style="width:58.5pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="78"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>99.7%</span></div></td><td style="width:52.95pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="71"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>85.5%</span></div></td><td style="width:56pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="75"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>68.7%</span></div></td><td style="width:75pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="100"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>75.6%</span></div></td><td style="width:61pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="81"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>71.6%</span></div></td></tr><tr style="height:15pt"><td style="width:149.4pt;border-style:none solid solid;border-right-color:black;border-bottom-color:black;border-left-color:black;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="199"><div style="margin:0in 0in 0.0001pt"><b>Airtel Networks Kenya Ltd</b></div></td><td style="width:58.5pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="78"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>0.3%</span></div></td><td style="width:52.95pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="71"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>11.9%</span></div></td><td style="width:56pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="75"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>14.0%</span></div></td><td style="width:75pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="100"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>12.9%</span></div></td><td style="width:61pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="81"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>13.5%</span></div></td></tr><tr style="height:15pt"><td style="width:149.4pt;border-style:none solid solid;border-right-color:black;border-bottom-color:black;border-left-color:black;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="199"><div style="margin:0in 0in 0.0001pt"><b>Telkom Kenya Ltd</b></div></td><td style="width:58.5pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="78"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>0.0%</span></div></td><td style="width:52.95pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="71"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>2.6%</span></div></td><td style="width:56pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="75"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>8.8%</span></div></td><td style="width:75pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="100"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>6.4%</span></div></td><td style="width:61pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="81"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>11.3%</span></div></td></tr><tr style="height:15pt"><td style="width:149.4pt;border-style:none solid solid;border-right-color:black;border-bottom-color:black;border-left-color:black;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="199"><div style="margin:0in 0in 0.0001pt"><b>Essar Telecom (K) Ltd</b></div></td><td style="width:58.5pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="78"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>0.0%</span></div></td><td style="width:52.95pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="71"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>0.0%</span></div></td><td style="width:56pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="75"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>8.4%</span></div></td><td style="width:75pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="100"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>5.0%</span></div></td><td style="width:61pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="81"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>3.6%</span></div></td></tr><tr style="height:15pt"><td style="width:149.4pt;border-style:none solid solid;border-right-color:black;border-bottom-color:black;border-left-color:black;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="199"><div style="margin:0in 0in 0.0001pt"><b>Totals</b></div></td><td style="width:58.5pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="78"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>100%</span></div></td><td style="width:52.95pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="71"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>100%</span></div></td><td style="width:56pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="75"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>100%</span></div></td><td style="width:75pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="100"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>100%</span></div></td><td style="width:61pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="81"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>100%</span></div></td></tr></tbody></table><div style="margin:3pt 0in"> </div><div style="margin:3pt 0in"><span>Mobile Data Market Share by Subscription</span></div><div style="margin:3pt 0in"><span><image004.png></span></div><div style="margin:3pt 0in"><span>Source: CA Reports Extracts</span></div><div style="margin:3pt 0in"> </div><div style="margin:3pt 0in"><span><image006.png></span></div><div style="margin:3pt 0in"><span>Source: Safaricom Half-Year Results Presentation 2014/2015</span></div><div style="margin:3pt 0in"> </div><h3 style="text-indent:0px;margin:12pt 0in 3pt 0.5in"><font color="#000000" size="3"><span><a rel="nofollow" name="14ba8345cf6aff7b__Toc404931002">4.1.2<span style="font-weight:normal"> </span>Market Shares by Traffic or Transactions</a></span></font></h3><div style="margin:3pt 0in"> </div><div style="margin:3pt 0in"><span>Mobile Traffic Volumes by Operator since 2012 in Billion Minutes</span></div><table style="width:434.85pt;border-collapse:collapse;border:none" border="1" cellpadding="0" cellspacing="0" width="580"><tbody><tr style="height:15pt"><td style="width:150.85pt;border-style:solid;border-color:rgb(75,172,198);border-width:1pt 1pt 2.25pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="201"><div style="margin:0in 0in 0.0001pt"><b>Operator</b></div></td><td style="width:98.1pt;border-style:solid solid solid none;border-top-color:rgb(75,172,198);border-top-width:1pt;border-bottom-color:rgb(75,172,198);border-bottom-width:2.25pt;border-right-color:rgb(75,172,198);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="131"><div style="margin:0in 0in 0.0001pt"><b>Year 2011/12 </b></div></td><td style="width:98.1pt;border-style:solid solid solid none;border-top-color:rgb(75,172,198);border-top-width:1pt;border-bottom-color:rgb(75,172,198);border-bottom-width:2.25pt;border-right-color:rgb(75,172,198);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="131"><div style="margin:0in 0in 0.0001pt"><b>Year 2012/13</b></div></td><td style="width:87.8pt;border-style:solid solid solid none;border-top-color:rgb(75,172,198);border-top-width:1pt;border-bottom-color:rgb(75,172,198);border-bottom-width:2.25pt;border-right-color:rgb(75,172,198);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="117"><div style="margin:0in 0in 0.0001pt"><b>Year 2013/14</b></div></td></tr><tr style="height:15pt"><td style="width:150.85pt;border-style:none solid solid;border-right-color:rgb(75,172,198);border-bottom-color:rgb(75,172,198);border-left-color:rgb(75,172,198);border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="201"><div style="margin:0in 0in 0.0001pt"><b>Safaricom Ltd</b></div></td><td style="width:98.1pt;border-style:none solid solid none;border-bottom-color:rgb(75,172,198);border-bottom-width:1pt;border-right-color:rgb(75,172,198);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="131"><div style="margin:0in 0in 0.0001pt"><span>21.75 </span></div></td><td style="width:98.1pt;border-style:none solid solid none;border-bottom-color:rgb(75,172,198);border-bottom-width:1pt;border-right-color:rgb(75,172,198);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="131"><div style="margin:0in 0in 0.0001pt"><span>22.61 </span></div></td><td style="width:87.8pt;border-style:none solid solid none;border-bottom-color:rgb(75,172,198);border-bottom-width:1pt;border-right-color:rgb(75,172,198);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="117"><div style="margin:0in 0in 0.0001pt"><span>23.88 </span></div></td></tr><tr style="height:15pt"><td style="width:150.85pt;border-style:none solid solid;border-right-color:rgb(75,172,198);border-bottom-color:rgb(75,172,198);border-left-color:rgb(75,172,198);border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="201"><div style="margin:0in 0in 0.0001pt"><b>Airtel Networks Kenya Ltd</b></div></td><td style="width:98.1pt;border-style:none solid solid none;border-bottom-color:rgb(75,172,198);border-bottom-width:1pt;border-right-color:rgb(75,172,198);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="131"><div style="margin:0in 0in 0.0001pt"><span>2.93 </span></div></td><td style="width:98.1pt;border-style:none solid solid none;border-bottom-color:rgb(75,172,198);border-bottom-width:1pt;border-right-color:rgb(75,172,198);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="131"><div style="margin:0in 0in 0.0001pt"><span>3.38 </span></div></td><td style="width:87.8pt;border-style:none solid solid none;border-bottom-color:rgb(75,172,198);border-bottom-width:1pt;border-right-color:rgb(75,172,198);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="117"><div style="margin:0in 0in 0.0001pt"><span>3.06 </span></div></td></tr><tr style="height:15pt"><td style="width:150.85pt;border-style:none solid solid;border-right-color:rgb(75,172,198);border-bottom-color:rgb(75,172,198);border-left-color:rgb(75,172,198);border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="201"><div style="margin:0in 0in 0.0001pt"><b>Telkom Kenya Ltd</b></div></td><td style="width:98.1pt;border-style:none solid solid none;border-bottom-color:rgb(75,172,198);border-bottom-width:1pt;border-right-color:rgb(75,172,198);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="131"><div style="margin:0in 0in 0.0001pt"><span>0.21 </span></div></td><td style="width:98.1pt;border-style:none solid solid none;border-bottom-color:rgb(75,172,198);border-bottom-width:1pt;border-right-color:rgb(75,172,198);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="131"><div style="margin:0in 0in 0.0001pt"><span>0.38 </span></div></td><td style="width:87.8pt;border-style:none solid solid none;border-bottom-color:rgb(75,172,198);border-bottom-width:1pt;border-right-color:rgb(75,172,198);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="117"><div style="margin:0in 0in 0.0001pt"><span>0.92 </span></div></td></tr><tr style="height:15pt"><td style="width:150.85pt;border-style:none solid solid;border-right-color:rgb(75,172,198);border-bottom-color:rgb(75,172,198);border-left-color:rgb(75,172,198);border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="201"><div style="margin:0in 0in 0.0001pt"><b>Essar Telecom (K) Ltd</b></div></td><td style="width:98.1pt;border-style:none solid solid none;border-bottom-color:rgb(75,172,198);border-bottom-width:1pt;border-right-color:rgb(75,172,198);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="131"><div style="margin:0in 0in 0.0001pt"><span>2.07 </span></div></td><td style="width:98.1pt;border-style:none solid solid none;border-bottom-color:rgb(75,172,198);border-bottom-width:1pt;border-right-color:rgb(75,172,198);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="131"><div style="margin:0in 0in 0.0001pt"><span>2.43 </span></div></td><td style="width:87.8pt;border-style:none solid solid none;border-bottom-color:rgb(75,172,198);border-bottom-width:1pt;border-right-color:rgb(75,172,198);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="117"><div style="margin:0in 0in 0.0001pt"><span>2.38 </span></div></td></tr><tr style="height:15pt"><td style="width:150.85pt;border-style:none solid solid;border-right-color:rgb(75,172,198);border-bottom-color:rgb(75,172,198);border-left-color:rgb(75,172,198);border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="201"><div style="margin:0in 0in 0.0001pt"><b>Totals</b></div></td><td style="width:98.1pt;border-style:none solid solid none;border-bottom-color:rgb(75,172,198);border-bottom-width:1pt;border-right-color:rgb(75,172,198);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="131"><div style="margin:0in 0in 0.0001pt"><span>26.96 </span></div></td><td style="width:98.1pt;border-style:none solid solid none;border-bottom-color:rgb(75,172,198);border-bottom-width:1pt;border-right-color:rgb(75,172,198);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="131"><div style="margin:0in 0in 0.0001pt"><span>28.80 </span></div></td><td style="width:87.8pt;border-style:none solid solid none;border-bottom-color:rgb(75,172,198);border-bottom-width:1pt;border-right-color:rgb(75,172,198);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="117"><div style="margin:0in 0in 0.0001pt"><span>30.24 </span></div></td></tr></tbody></table><div style="margin:3pt 0in"><i>Source: Compiled from CCK/CA published reports</i></div><div style="margin:3pt 0in"> </div><div style="margin:3pt 0in"><span>Mobile Voice Minutes Market Share by Operator over a three year Period</span></div><table style="width:432.9pt;border-collapse:collapse;border:none" border="1" cellpadding="0" cellspacing="0" width="577"><tbody><tr style="height:15pt"><td style="width:150.85pt;border-style:solid;border-color:rgb(155,187,89);border-width:1pt 1pt 2.25pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="201"><div style="margin:0in 0in 0.0001pt"><b>Operator</b></div></td><td style="width:97.55pt;border-style:solid solid solid none;border-top-color:rgb(155,187,89);border-top-width:1pt;border-bottom-color:rgb(155,187,89);border-bottom-width:2.25pt;border-right-color:rgb(155,187,89);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="130"><div style="margin:0in 0in 0.0001pt"><b>Year 2011/12</b></div></td><td style="width:99pt;border-style:solid solid solid none;border-top-color:rgb(155,187,89);border-top-width:1pt;border-bottom-color:rgb(155,187,89);border-bottom-width:2.25pt;border-right-color:rgb(155,187,89);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="132"><div style="margin:0in 0in 0.0001pt"><b>Year 2012/13</b></div></td><td style="width:85.5pt;border-style:solid solid solid none;border-top-color:rgb(155,187,89);border-top-width:1pt;border-bottom-color:rgb(155,187,89);border-bottom-width:2.25pt;border-right-color:rgb(155,187,89);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="114"><div style="margin:0in 0in 0.0001pt"><b>Year 2013/14</b></div></td></tr><tr style="height:15pt"><td style="width:150.85pt;border-style:none solid solid;border-right-color:rgb(155,187,89);border-bottom-color:rgb(155,187,89);border-left-color:rgb(155,187,89);border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="201"><div style="margin:0in 0in 0.0001pt"><b>Safaricom Ltd</b></div></td><td style="width:97.55pt;border-style:none solid solid none;border-bottom-color:rgb(155,187,89);border-bottom-width:1pt;border-right-color:rgb(155,187,89);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="130"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>80.7%</span></div></td><td style="width:99pt;border-style:none solid solid none;border-bottom-color:rgb(155,187,89);border-bottom-width:1pt;border-right-color:rgb(155,187,89);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="132"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>78.5%</span></div></td><td style="width:85.5pt;border-style:none solid solid none;border-bottom-color:rgb(155,187,89);border-bottom-width:1pt;border-right-color:rgb(155,187,89);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="114"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>79.0%</span></div></td></tr><tr style="height:15pt"><td style="width:150.85pt;border-style:none solid solid;border-right-color:rgb(155,187,89);border-bottom-color:rgb(155,187,89);border-left-color:rgb(155,187,89);border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="201"><div style="margin:0in 0in 0.0001pt"><b>Airtel Networks Kenya Ltd</b></div></td><td style="width:97.55pt;border-style:none solid solid none;border-bottom-color:rgb(155,187,89);border-bottom-width:1pt;border-right-color:rgb(155,187,89);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="130"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>10.9%</span></div></td><td style="width:99pt;border-style:none solid solid none;border-bottom-color:rgb(155,187,89);border-bottom-width:1pt;border-right-color:rgb(155,187,89);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="132"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>11.7%</span></div></td><td style="width:85.5pt;border-style:none solid solid none;border-bottom-color:rgb(155,187,89);border-bottom-width:1pt;border-right-color:rgb(155,187,89);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="114"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>10.1%</span></div></td></tr><tr style="height:15pt"><td style="width:150.85pt;border-style:none solid solid;border-right-color:rgb(155,187,89);border-bottom-color:rgb(155,187,89);border-left-color:rgb(155,187,89);border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="201"><div style="margin:0in 0in 0.0001pt"><b>Telkom Kenya Ltd</b></div></td><td style="width:97.55pt;border-style:none solid solid none;border-bottom-color:rgb(155,187,89);border-bottom-width:1pt;border-right-color:rgb(155,187,89);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="130"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>0.8%</span></div></td><td style="width:99pt;border-style:none solid solid none;border-bottom-color:rgb(155,187,89);border-bottom-width:1pt;border-right-color:rgb(155,187,89);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="132"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>1.3%</span></div></td><td style="width:85.5pt;border-style:none solid solid none;border-bottom-color:rgb(155,187,89);border-bottom-width:1pt;border-right-color:rgb(155,187,89);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="114"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>3.0%</span></div></td></tr><tr style="height:15pt"><td style="width:150.85pt;border-style:none solid solid;border-right-color:rgb(155,187,89);border-bottom-color:rgb(155,187,89);border-left-color:rgb(155,187,89);border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="201"><div style="margin:0in 0in 0.0001pt"><b>Essar Telecom (K) Ltd</b></div></td><td style="width:97.55pt;border-style:none solid solid none;border-bottom-color:rgb(155,187,89);border-bottom-width:1pt;border-right-color:rgb(155,187,89);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="130"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>7.7%</span></div></td><td style="width:99pt;border-style:none solid solid none;border-bottom-color:rgb(155,187,89);border-bottom-width:1pt;border-right-color:rgb(155,187,89);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="132"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>8.5%</span></div></td><td style="width:85.5pt;border-style:none solid solid none;border-bottom-color:rgb(155,187,89);border-bottom-width:1pt;border-right-color:rgb(155,187,89);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="114"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>7.9%</span></div></td></tr><tr style="height:15pt"><td style="width:150.85pt;border-style:none solid solid;border-right-color:rgb(155,187,89);border-bottom-color:rgb(155,187,89);border-left-color:rgb(155,187,89);border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="201"><div style="margin:0in 0in 0.0001pt"><b>Totals</b></div></td><td style="width:97.55pt;border-style:none solid solid none;border-bottom-color:rgb(155,187,89);border-bottom-width:1pt;border-right-color:rgb(155,187,89);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="130"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>100%</span></div></td><td style="width:99pt;border-style:none solid solid none;border-bottom-color:rgb(155,187,89);border-bottom-width:1pt;border-right-color:rgb(155,187,89);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="132"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>100%</span></div></td><td style="width:85.5pt;border-style:none solid solid none;border-bottom-color:rgb(155,187,89);border-bottom-width:1pt;border-right-color:rgb(155,187,89);border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="top" width="114"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>100%</span></div></td></tr></tbody></table><div style="margin:3pt 0in"> </div><div style="margin:3pt 0in"><span><image008.png></span></div><div style="margin:3pt 0in"> </div><div style="margin:3pt 0in"><span>Chart 3: Market Share by Traffic Volumes in Minutes (2013/14)</span></div><div style="margin:3pt 0in"> </div><div style="margin:3pt 0in"><span>The above numbers clearly supports our submission to declare Safaricom as dominant in the Retail Voice, Data and SMS market.</span></div><div style="margin:3pt 0in"> </div><div style="margin:3pt 0in"><span>Mobile SMS Traffic by Mobile Operator in Millions SMS’s</span></div><table style="width:372.7pt;margin-left:4.65pt;border-collapse:collapse" border="0" cellpadding="0" cellspacing="0" width="497"><tbody><tr style="height:15pt"><td style="width:132.55pt;border:1pt solid windowtext;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="177"><div style="margin:0in 0in 0.0001pt"><span>Operator</span></div></td><td style="width:76.35pt;border-style:solid solid solid none;border-top-color:windowtext;border-right-color:windowtext;border-bottom-color:windowtext;border-top-width:1pt;border-right-width:1pt;border-bottom-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="102"><div style="margin:0in 0in 0.0001pt"><span>Year 2011/12</span></div></td><td style="width:81.9pt;border-style:solid solid solid none;border-top-color:windowtext;border-right-color:windowtext;border-bottom-color:windowtext;border-top-width:1pt;border-right-width:1pt;border-bottom-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="109"><div style="margin:0in 0in 0.0001pt"><span>Year 2012/13</span></div></td><td style="width:81.9pt;border-style:solid solid solid none;border-top-color:windowtext;border-right-color:windowtext;border-bottom-color:windowtext;border-top-width:1pt;border-right-width:1pt;border-bottom-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="109"><div style="margin:0in 0in 0.0001pt"><span>Year 2013/14</span></div></td></tr><tr style="height:15pt"><td style="width:132.55pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="177"><div style="margin:0in 0in 0.0001pt"><span>Safaricom Ltd</span></div></td><td style="width:76.35pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="102"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>3,626.14 </span></div></td><td style="width:81.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="109"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>12,386.16 </span></div></td><td style="width:81.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="109"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>23,502.51 </span></div></td></tr><tr style="height:15pt"><td style="width:132.55pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="177"><div style="margin:0in 0in 0.0001pt"><span>Airtel Networks Kenya Ltd</span></div></td><td style="width:76.35pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="102"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>494.01 </span></div></td><td style="width:81.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="109"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>632.10 </span></div></td><td style="width:81.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="109"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>731.61 </span></div></td></tr><tr style="height:15pt"><td style="width:132.55pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="177"><div style="margin:0in 0in 0.0001pt"><span>Telkom Kenya Ltd</span></div></td><td style="width:76.35pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="102"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>75.02 </span></div></td><td style="width:81.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="109"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>74.25 </span></div></td><td style="width:81.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="109"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>92.35 </span></div></td></tr><tr style="height:15pt"><td style="width:132.55pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="177"><div style="margin:0in 0in 0.0001pt"><span>Essar Telecom (K) Ltd</span></div></td><td style="width:76.35pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="102"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>100.21 </span></div></td><td style="width:81.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="109"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>140.58 </span></div></td><td style="width:81.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="109"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>117.55 </span></div></td></tr><tr style="height:15pt"><td style="width:132.55pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="177"><div style="margin:0in 0in 0.0001pt"><span>Totals</span></div></td><td style="width:76.35pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="102"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>4,295 </span></div></td><td style="width:81.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="109"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>13,233 </span></div></td><td style="width:81.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="109"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>24,444 </span></div></td></tr></tbody></table><div style="margin:3pt 0in"><i>Source: Compiled from CCK/CA published reports</i></div><div style="margin:3pt 0in"> </div><div style="margin:3pt 0in"><span>SMS Market Shares by Operator by number of SMS’s</span></div><table style="width:374pt;margin-left:4.65pt;border-collapse:collapse" border="0" cellpadding="0" cellspacing="0" width="499"><tbody><tr style="height:15pt"><td style="width:139pt;border:1pt solid windowtext;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="185"><div style="margin:0in 0in 0.0001pt"><span>Operator</span></div></td><td style="width:75pt;border-style:solid solid solid none;border-top-color:windowtext;border-right-color:windowtext;border-bottom-color:windowtext;border-top-width:1pt;border-right-width:1pt;border-bottom-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="100"><div style="margin:0in 0in 0.0001pt"><span>Year 2011/12</span></div></td><td style="width:80pt;border-style:solid solid solid none;border-top-color:windowtext;border-right-color:windowtext;border-bottom-color:windowtext;border-top-width:1pt;border-right-width:1pt;border-bottom-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="107"><div style="margin:0in 0in 0.0001pt"><span>Year 2012/13</span></div></td><td style="width:80pt;border-style:solid solid solid none;border-top-color:windowtext;border-right-color:windowtext;border-bottom-color:windowtext;border-top-width:1pt;border-right-width:1pt;border-bottom-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="107"><div style="margin:0in 0in 0.0001pt"><span>Year 2013/14</span></div></td></tr><tr style="height:15pt"><td style="width:139pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="185"><div style="margin:0in 0in 0.0001pt"><span>Safaricom Ltd</span></div></td><td style="width:75pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="100"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>84%</span></div></td><td style="width:80pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="107"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>94%</span></div></td><td style="width:80pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="107"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>96%</span></div></td></tr><tr style="height:15pt"><td style="width:139pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="185"><div style="margin:0in 0in 0.0001pt"><span>Airtel Networks Kenya Ltd</span></div></td><td style="width:75pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="100"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>12%</span></div></td><td style="width:80pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="107"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>5%</span></div></td><td style="width:80pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="107"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>3%</span></div></td></tr><tr style="height:15pt"><td style="width:139pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="185"><div style="margin:0in 0in 0.0001pt"><span>Telkom Kenya Ltd</span></div></td><td style="width:75pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="100"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>2%</span></div></td><td style="width:80pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="107"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>1%</span></div></td><td style="width:80pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="107"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>0%</span></div></td></tr><tr style="height:15pt"><td style="width:139pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="185"><div style="margin:0in 0in 0.0001pt"><span>Essar Telecom (K) Ltd</span></div></td><td style="width:75pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="100"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>2%</span></div></td><td style="width:80pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="107"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>1%</span></div></td><td style="width:80pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="107"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>0%</span></div></td></tr><tr style="height:15pt"><td style="width:139pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="185"><div style="margin:0in 0in 0.0001pt"><span>Totals</span></div></td><td style="width:75pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="100"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>100%</span></div></td><td style="width:80pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="107"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>100%</span></div></td><td style="width:80pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0in 5.4pt;height:15pt" nowrap valign="bottom" width="107"><div style="margin:0in 0in 0.0001pt;text-align:right" align="right"><span>100%</span></div></td></tr></tbody></table><h1 style="text-indent:0px;margin:12pt 0in 3pt 0.3in"><font color="#000000" size="3"><span><a rel="nofollow" name="14ba8345cf6aff7b__Toc404931010"><span lang="EN-GB">5<span style="font-weight:normal"> </span></span><span lang="EN-GB">Benchmarking – Case Studies</span></a><span lang="EN-GB"></span></span></font></h1><h2 style="text-indent:0px;margin:6pt 0in 6pt 0.4in"><font color="#000000" size="3"><span><a rel="nofollow" name="14ba8345cf6aff7b__Toc404931011">5.1<span style="font-weight:normal"> </span>Dominance Declarations in African Countries</a></span></font></h2><div style="margin:3pt 0in"><span>Recently the Nigeria Communications Commission declared MTN Nigeria and Globacom dominant following a study conducted by KPMG Professional Services. MTN was declared dominant in two market segment-Mobile Voice Market and Wholesale leased lines and transmission capacity whereas Globacom (Nigeria’s second National Operator) was declared the leader in wholesale leased lines and transmission capacity market.</span></div><div style="margin:3pt 0in"> </div><div style="margin:3pt 0in"><span>In its determination, Nigeria Communications Commission found that the mobile voice market was not effectively competitive and therefore ordered MTN (which has 44% of the mobile voice market) to charge same amount for on-net and off-net calls. We further wish to share with the Authority a list of countries in Africa which have declared some mobile operators dominant.</span></div><div style="margin:3pt 0in"> </div><table style="border-collapse:collapse;border:none" border="1" cellpadding="0" cellspacing="0"><tbody><tr><td style="width:79.8pt;border:1pt solid black;padding:0in 5.4pt" valign="top" width="106"><div style="margin:3pt 0in 0.0001pt"><b>Country in Africa</b></div></td><td style="width:132.6pt;border-style:solid solid solid none;border-top-color:black;border-right-color:black;border-bottom-color:black;border-top-width:1pt;border-right-width:1pt;border-bottom-width:1pt;padding:0in 5.4pt" valign="top" width="177"><div style="margin:3pt 0in 0.0001pt"><b>Name of Dominant Operator in country</b></div></td><td style="width:103.5pt;border-style:solid solid solid none;border-top-color:black;border-right-color:black;border-bottom-color:black;border-top-width:1pt;border-right-width:1pt;border-bottom-width:1pt;padding:0in 5.4pt" valign="top" width="138"><div style="margin:3pt 0in 0.0001pt"><b>Market Share of Dominant Operator</b></div></td><td style="width:135pt;border-style:solid solid solid none;border-top-color:black;border-right-color:black;border-bottom-color:black;border-top-width:1pt;border-right-width:1pt;border-bottom-width:1pt;padding:0in 5.4pt" valign="top" width="180"><div style="margin:3pt 0in 0.0001pt"><b>Year Operator declared Dominant</b></div></td></tr><tr><td style="width:79.8pt;border-style:none solid solid;border-right-color:black;border-bottom-color:black;border-left-color:black;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt" valign="top" width="106"><div style="margin:3pt 0in 0.0001pt"><span>Nigeria</span></div></td><td style="width:132.6pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt" valign="top" width="177"><div style="margin:3pt 0in 0.0001pt"><span>MTN</span></div></td><td style="width:103.5pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt" valign="top" width="138"><div style="margin:3pt 0in 0.0001pt"><span>44%</span></div></td><td style="width:135pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt" valign="top" width="180"><div style="margin:3pt 0in 0.0001pt"><span>April 28, 2013</span></div></td></tr><tr><td style="width:79.8pt;border-style:none solid solid;border-right-color:black;border-bottom-color:black;border-left-color:black;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt" valign="top" width="106"><div style="margin:3pt 0in 0.0001pt"><span>Congo B</span></div></td><td style="width:132.6pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt" valign="top" width="177"><div style="margin:3pt 0in 0.0001pt"><span>MTN</span></div><div style="margin:3pt 0in 0.0001pt"><span>Airtel</span></div></td><td style="width:103.5pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt" valign="top" width="138"><div style="margin:3pt 0in 0.0001pt"><span>40%</span></div><div style="margin:3pt 0in 0.0001pt"><span>38%</span></div></td><td style="width:135pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt" valign="top" width="180"><div style="margin:3pt 0in 0.0001pt"><span>March 2013</span></div></td></tr><tr><td style="width:79.8pt;border-style:none solid solid;border-right-color:black;border-bottom-color:black;border-left-color:black;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt" valign="top" width="106"><div style="margin:3pt 0in 0.0001pt"><span>Niger</span></div></td><td style="width:132.6pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt" valign="top" width="177"><div style="margin:3pt 0in 0.0001pt"><span>Airtel</span></div></td><td style="width:103.5pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt" valign="top" width="138"><div style="margin:3pt 0in 0.0001pt"><span>61.4%</span></div></td><td style="width:135pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt" valign="top" width="180"><div style="margin:3pt 0in 0.0001pt"><span>2013</span></div></td></tr><tr><td style="width:79.8pt;border-style:none solid solid;border-right-color:black;border-bottom-color:black;border-left-color:black;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt" valign="top" width="106"><div style="margin:3pt 0in 0.0001pt"><span>chad</span></div></td><td style="width:132.6pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt" valign="top" width="177"><div style="margin:3pt 0in 0.0001pt"><span>Airtel</span></div></td><td style="width:103.5pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt" valign="top" width="138"><div style="margin:3pt 0in 0.0001pt"><span>53%</span></div></td><td style="width:135pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt" valign="top" width="180"><div style="margin:3pt 0in 0.0001pt"><span>2013</span></div></td></tr><tr><td style="width:79.8pt;border-style:none solid solid;border-right-color:black;border-bottom-color:black;border-left-color:black;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt" valign="top" width="106"><div style="margin:3pt 0in 0.0001pt"><span>Rwanda</span></div></td><td style="width:132.6pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt" valign="top" width="177"><div style="margin:3pt 0in 0.0001pt"><span>MTN</span></div></td><td style="width:103.5pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt" valign="top" width="138"><div style="margin:3pt 0in 0.0001pt"><span>57%</span></div></td><td style="width:135pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt" valign="top" width="180"><div style="margin:3pt 0in 0.0001pt"><span>2013</span></div></td></tr><tr><td style="width:79.8pt;border-style:none solid solid;border-right-color:black;border-bottom-color:black;border-left-color:black;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt" valign="top" width="106"><div style="margin:3pt 0in 0.0001pt"><span>Burkina Faso</span></div></td><td style="width:132.6pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt" valign="top" width="177"><div style="margin:3pt 0in 0.0001pt"><span>Airtel</span></div><div style="margin:3pt 0in 0.0001pt"><span>Telmob</span></div></td><td style="width:103.5pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt" valign="top" width="138"><div style="margin:3pt 0in 0.0001pt"><span>39.24%</span></div><div style="margin:3pt 0in 0.0001pt"><span>38.36%</span></div></td><td style="width:135pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt" valign="top" width="180"><div style="margin:3pt 0in 0.0001pt"><span>2012</span></div></td></tr><tr><td style="width:79.8pt;border-style:none solid solid;border-right-color:black;border-bottom-color:black;border-left-color:black;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt" valign="top" width="106"><div style="margin:3pt 0in 0.0001pt"><span>Senegal</span></div></td><td style="width:132.6pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt" valign="top" width="177"><div style="margin:3pt 0in 0.0001pt"><span>Orange</span></div></td><td style="width:103.5pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt" valign="top" width="138"><div style="margin:3pt 0in 0.0001pt"><span>62.06 %</span></div></td><td style="width:135pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt" valign="top" width="180"><div style="margin:3pt 0in 0.0001pt"><span>2012</span></div></td></tr><tr><td style="width:79.8pt;border-style:none solid solid;border-right-color:black;border-bottom-color:black;border-left-color:black;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0in 5.4pt" valign="top" width="106"><div style="margin:3pt 0in 0.0001pt"><span>Gabon</span></div></td><td style="width:132.6pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt" valign="top" width="177"><div style="margin:3pt 0in 0.0001pt"><span>Airtel</span></div></td><td style="width:103.5pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt" valign="top" width="138"><div style="margin:3pt 0in 0.0001pt"><span>45%</span></div></td><td style="width:135pt;border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0in 5.4pt" valign="top" width="180"><div style="margin:3pt 0in 0.0001pt"><span>2013</span></div></td></tr></tbody></table><div style="margin:3pt 0in"> </div><div style="margin:3pt 0in"><span>We wish to highlight to the Authority that Safaricom has more market shares than most of the operators declared dominant as per the table above. We therefore request the Authority to proceed with speed to declare Safaricom dominant just like the other regulators have done in their jurisdictions.</span></div><div style="margin:3pt 0in"> </div><h2 style="text-indent:0px;margin:6pt 0in 6pt 0.4in"><font color="#000000" size="3"><span><a rel="nofollow" name="14ba8345cf6aff7b__Toc404931012">5.2<span style="font-weight:normal"> </span>IFT (Federal Telecommunication Institute) Mexico</a></span></font></h2><div style="margin:3pt 0in"><span>In early 2014 America Movil and its operating subsidiaries- Telecel (Mexico’s wireless market leader) and Telemex (the dominant fixed line player) were declared by the IFC as a dominant economic interest group in the telecommunications market. </span></div><div style="margin:3pt 0in"><span>Telecel’s market share at the time stood at 69 % and Telemex’s market share stood at around 85%. The market concentration stood at 6382 points on the HHI with Mobile Market standing at 5334 point and the fixed telephony market stood at 4761 points on the HHI. According to the IFT a HHI score of more than 2000 points can affect competition. As the Authority will note the HHI scores are very much in line with the market concentration levels in Kenya.</span></div><div style="margin:3pt 0in"><span>The regulator subjected them to the following regulations on the wholesale level:</span></div><div style="text-indent:0px;margin:0in 0in 0.0001pt 0.5in"><span>· Asymmetric interconnection rates</span></div><div style="text-indent:0px;margin:0in 0in 0.0001pt 0.5in"><span>· Access to passive infrastructure</span></div><div style="text-indent:0px;margin:0in 0in 0.0001pt 0.5in"><span>· Local loop unbundling</span></div><div style="text-indent:0px;margin:0in 0in 0.0001pt 0.5in"><span>· Mandatory National roaming Access</span></div><div style="margin:0in 0in 0.0001pt"> </div><div style="margin:0in 0in 0.0001pt"><span>The regulator subjected them to the following regulations on the retail level:</span></div><div style="margin:0in 0in 0.0001pt"> </div><div style="text-indent:0px;margin:0in 0in 0.0001pt 0.5in"><span>· End to SIM locking of handsets</span></div><div style="text-indent:0px;margin:0in 0in 0.0001pt 0.5in"><span>· All services sold in bundles were required to be sold separately</span></div><div style="text-indent:0px;margin:0in 0in 0.0001pt 0.5in"><span>· Certain retail prices were to be reviewed.</span></div><h2 style="text-indent:0px;margin:6pt 0in 6pt 0.4in"><font color="#000000" size="3"><span><a rel="nofollow" name="14ba8345cf6aff7b__Toc404931013">5.3<span style="font-weight:normal"> </span>Summary of obligations Imposed on Dominant Operators in other countries</a></span></font></h2><div style="margin:0in 0in 0.0001pt"><span>The following is a summary of Dominance Remedies implemented in various countries. It is important to note that Asymmetric Interconnection is one of the remedies, Account separation, infrastructure sharing and on-net/off-net equalization.</span></div><div style="margin:0in 0in 0.0001pt"> </div><table style="width:665px;border-collapse:collapse" border="0" cellpadding="0" cellspacing="0" width="102%"><tbody><tr style="height:24pt"><td style="width:56.625px;border-style:solid;border-color:white;border-width:1pt 1pt 3pt;padding:0.75pt 5.4pt 0in;height:24pt" valign="top" width="10%"><div style="margin:3pt 0in;text-align:justify"><span><b>Country</b></span></div></td><td style="width:577.625px;border-style:solid solid solid none;border-top-color:white;border-top-width:1pt;border-bottom-color:white;border-bottom-width:3pt;border-right-color:white;border-right-width:1pt;padding:0.75pt 5.4pt 0in;height:24pt" valign="top" width="90%"><div style="margin:3pt 0in;text-align:justify"><span><b>Obligations</b></span></div></td></tr><tr style="height:120.8pt"><td style="width:56.625px;border-style:none solid solid;border-right-color:white;border-bottom-color:white;border-left-color:white;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0.75pt 5.4pt 0in;height:120.8pt" valign="top" width="10%"><div style="margin:3pt 0in;text-align:justify"><span><b>Ghana </b></span></div></td><td style="width:577.625px;border-style:none solid solid none;border-bottom-color:white;border-bottom-width:1pt;border-right-color:white;border-right-width:1pt;padding:0.75pt 5.4pt 0in;height:120.8pt" valign="top" width="90%"><div style="margin:3pt 0in 0.0001pt 0.25in;text-align:justify"><span>• Accounting Separation</span></div><div style="margin:3pt 0in 0.0001pt 0.25in;text-align:justify"><span>• Collapse of On‐net and Off‐net Retail Tariffs. The tariff for on‐net and off-net will be the same, and subject to periodic review.</span></div><div style="margin:3pt 0in 0.0001pt 0.25in;text-align:justify"><span>• Submission of Required Details: The Commission may require the dominant operator to submit details on specific aspects of its operations from time to time as the need arises.</span></div><div style="margin:3pt 0in 0.0001pt 0.25in;text-align:justify"><span>• Asymmetric interconnect termination rate regime applies to new entrants as well as Operators with less than 5% of subscriber market share</span></div></td></tr><tr style="height:75.2pt"><td style="width:56.625px;border-style:none solid solid;border-right-color:white;border-bottom-color:white;border-left-color:white;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0.75pt 5.4pt 0in;height:75.2pt" valign="top" width="10%"><div style="margin:3pt 0in;text-align:justify"><span><b>Gabon</b></span></div></td><td style="width:577.625px;border-style:none solid solid none;border-bottom-color:white;border-bottom-width:1pt;border-right-color:white;border-right-width:1pt;padding:0.75pt 5.4pt 0in;height:75.2pt" valign="top" width="90%"><div style="margin:3pt 0in 0.0001pt 0.25in;text-align:justify"><span>• Interconnection</span></div><div style="margin:3pt 0in 0.0001pt 0.25in;text-align:justify"><span>• Obligations of the quality of service, Obligation of non-discrimination transparency;</span></div><div style="margin:3pt 0in 0.0001pt 0.25in;text-align:justify"><span>• Publication of the catalog of infrastructure sharing;</span></div><div style="margin:3pt 0in 0.0001pt 0.25in;text-align:justify"><span>• Accounting separation obligation and duty on the cost accounting of all benefits</span></div></td></tr><tr style="height:39.3pt"><td style="width:56.625px;border-style:none solid solid;border-right-color:white;border-bottom-color:white;border-left-color:white;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0.75pt 5.4pt 0in;height:39.3pt" valign="top" width="10%"><div style="margin:3pt 0in;text-align:justify"><span><b>Nigeria</b></span></div></td><td style="width:577.625px;border-style:none solid solid none;border-bottom-color:white;border-bottom-width:1pt;border-right-color:white;border-right-width:1pt;padding:0.75pt 5.4pt 0in;height:39.3pt" valign="top" width="90%"><div style="margin:3pt 0in 0.0001pt 0.25in;text-align:justify"><span>• Collapsed of on-net and off-net retail tariffs to discourage calling club effect;</span></div><div style="margin:3pt 0in 0.0001pt 0.25in;text-align:justify"><span>• Accounts Separation;</span></div></td></tr><tr style="height:39.3pt"><td style="width:56.625px;border-style:none solid solid;border-right-color:white;border-bottom-color:white;border-left-color:white;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0.75pt 5.4pt 0in;height:39.3pt" valign="top" width="10%"><div style="margin:3pt 0in;text-align:justify"><span><b>Mexico</b></span></div></td><td style="width:577.625px;border-style:none solid solid none;border-bottom-color:white;border-bottom-width:1pt;border-right-color:white;border-right-width:1pt;padding:0.75pt 5.4pt 0in;height:39.3pt" valign="top" width="90%"><div style="margin:3pt 0in 0.0001pt 0.25in;text-align:justify"><span>• Asymmetric interconnection rates</span></div><div style="margin:3pt 0in 0.0001pt 0.25in;text-align:justify"><span>• Access to passive infrastructure</span></div><div style="margin:3pt 0in 0.0001pt 0.25in;text-align:justify"><span>• Local loop unbundling</span></div><div style="margin:3pt 0in 0.0001pt 0.25in;text-align:justify"><span>• Mandatory National roaming Access</span></div><div style="margin:3pt 0in 0.0001pt 0.25in;text-align:justify"><span>• End to SIM locking of handsets</span></div><div style="margin:3pt 0in 0.0001pt 0.25in;text-align:justify"><span>• All services sold in bundles were required to be sold separately</span></div><div style="margin:3pt 0in 0.0001pt 0.25in;text-align:justify"><span>• Certain retail prices were to be reviewed.</span></div></td></tr></tbody></table><div style="margin:0in 0in 0.0001pt"><b> </b></div><div style="margin:3pt 0in"> <b>Ali Hussein</b></div></div><div><br></div><div style="font-family:Helvetica;font-size:medium">+254 770 906375 / 0713 601113</div><div style="font-family:Helvetica;font-size:medium"><br></div><div><div style="margin:0in 0in 0pt"><span>Twitter: @AliHKassim</span></div><span><font></font></span><div style="margin:0in 0in 0pt"><span>Skype: abu-jomo</span></div><div style="margin:0in 0in 0pt"><span>LinkedIn: <a rel="nofollow" href="http://ke.linkedin.com/in/alihkassim" target="_blank">http://ke.linkedin.com/in/alihkassim</a><a rel="nofollow" href="http://ke.linkedin.com/in/alihkassim" target="_blank"><span style="text-decoration:none"></span></a></span></div><span><font></font></span><div style="margin:0in 0in 0pt"></div><font><span>Blog: <a rel="nofollow" href="http://www.alyhussein.com/" target="_blank">www.alyhussein.com</a></span><br></font></div><div><span><br></span></div><div>"I fear the day technology will surpass human interaction. The world will have a generation of idiots". ~ Albert Einstein</div><div><span><br></span></div>Sent from my iPad</div></div><br>_______________________________________________<br>isoc mailing list<br><a href="mailto:isoc@lists.my.co.ke" target="_blank">isoc@lists.my.co.ke</a><br><a href="http://lists.my.co.ke/cgi-bin/mailman/listinfo/isoc" target="_blank">http://lists.my.co.ke/cgi-bin/mailman/listinfo/isoc</a><br><br></div> </div> </div> </div></div></blockquote><blockquote type="cite"><div><image002.png></div></blockquote><blockquote type="cite"><div><image004.png></div></blockquote><blockquote type="cite"><div><image006.png></div></blockquote><blockquote type="cite"><div><image008.png></div></blockquote></div><br>_______________________________________________<br>
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