<div dir="ltr">Aren't there other areas where Safaricom didn't have an advantage? e.g. FTTH, Enterprise Connectivity etc? Why the fixation on voice/payments? </div><div class="gmail_extra"><br><div class="gmail_quote">On Tue, Jul 31, 2018 at 9:31 PM, Victor Kapiyo 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="ltr"><div class="gmail_default" style="font-family:tahoma,sans-serif;color:rgb(32,18,77)">Let me just place the relevant provisions of the Competition Act (<span style="font-size:small;background-color:rgb(255,255,255);text-decoration-style:initial;text-decoration-color:initial;float:none;display:inline">No. 16 of 2014)</span> on the table:</div><div class="gmail_default" style="font-family:tahoma,sans-serif;color:rgb(32,18,77)"><br></div><div class="gmail_default" style="font-family:tahoma,sans-serif;color:rgb(32,18,77)"><span style="font-size:small;background-color:rgb(255,255,255);text-decoration-style:initial;text-decoration-color:initial;float:none;display:inline">In Kenya, being dominant is not illegal. It is the abuse of the dominant position which is regulated as per the provisions below. The Act deals with dominance in two forms i.e. in terms of market share or market power. There is a presumption of dominance once an undertaking controls 50% of the market (s.23), or if its share is below 40%, where the entity has market power. Market power is defined<span> </span></span><span style="font-size:small;background-color:rgb(255,255,255);text-decoration-style:initial;text-decoration-color:initial;float:none;display:inline">as the power of a firm to control prices, to exclude competition or to behave to an appreciable extent, independently of its competitors, customers or suppliers. </span><br></div><div class="gmail_default" style="font-family:tahoma,sans-serif;color:rgb(32,18,77)"><span style="font-size:small;background-color:rgb(255,255,255);text-decoration-style:initial;text-decoration-color:initial;float:none;display:inline"><br></span></div><div class="gmail_default" style="font-family:tahoma,sans-serif;color:rgb(32,18,77)">23. Criteria for determining dominant position</div><div class="gmail_default" style="font-family:tahoma,sans-serif;color:rgb(32,18,77)">(1) For purposes of this section, “dominant undertaking” means an undertaking which—</div><div class="gmail_default" style="font-family:tahoma,sans-serif;color:rgb(32,18,77)">(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</div><div class="gmail_default" style="font-family:tahoma,sans-serif;color:rgb(32,18,77)">(b) provides or otherwise controls not less than one-half of the services which are rendered in Kenya or any substantial part thereof.</div><div class="gmail_default" style="font-family:tahoma,sans-serif;color:rgb(32,18,77)">(2) Notwithstanding subsection (1), an undertaking shall also be deemed to be dominant for the purposes of this Act where the undertaking—</div><div class="gmail_default" style="font-family:tahoma,sans-serif;color:rgb(32,18,77)">(a) though not dominant, controls at least forty per cent but not more than fifty per cent of the market share unless it can show that it does not have market power; or</div><div class="gmail_default" style="font-family:tahoma,sans-serif;color:rgb(32,18,77)">(b) controls less than forty per cent of the market share but has market power.</div><div class="gmail_default" style="font-family:tahoma,sans-serif;color:rgb(32,18,77)"><br></div><div class="gmail_default" style="font-family:tahoma,sans-serif;color:rgb(32,18,77)">The Act proceeds to define some of the instances where abuse can be seen to have occurred under s.24 below. The list is not exhaustive.</div><div class="gmail_default" style="font-family:tahoma,sans-serif;color:rgb(32,18,77)"><br></div><div class="gmail_default" style="font-family:tahoma,sans-serif;color:rgb(32,18,77)">24. Abuse of dominant position and buyer power</div><div class="gmail_default" style="font-family:tahoma,sans-serif;color:rgb(32,18,77)">(1) Any conduct which amounts to the abuse of a dominant position in a market in Kenya, or a substantial part of Kenya, is prohibited.</div><div class="gmail_default" style="font-family:tahoma,sans-serif;color:rgb(32,18,77)">(2) Without prejudice to the generality of subsection (1), abuse of a dominant position includes—</div><div class="gmail_default" style="font-family:tahoma,sans-serif;color:rgb(32,18,77)">(a) directly or indirectly imposing unfair purchase or selling prices or other unfair trading conditions;</div><div class="gmail_default" style="font-family:tahoma,sans-serif;color:rgb(32,18,77)">(b) limiting or restricting production, market outlets or market access, investment, distribution, technical development or technological progress through predatory or other practices;</div><div class="gmail_default" style="font-family:tahoma,sans-serif;color:rgb(32,18,77)">(c) applying dissimilar conditions to equivalent transactions with other trading parties;</div><div class="gmail_default" style="font-family:tahoma,sans-serif;color:rgb(32,18,77)">(d) making the conclusion of contracts subject to acceptance by other parties of supplementary conditions which by their nature or according to commercial usage have no connection with the subject-matter of the contracts; and</div><div class="gmail_default" style="font-family:tahoma,sans-serif;color:rgb(32,18,77)">(e) abuse of an intellectual property right.</div><div class="gmail_default" style="font-family:tahoma,sans-serif;color:rgb(32,18,77)"><br></div><div class="gmail_default"><span style="color:rgb(32,18,77);font-family:tahoma,sans-serif;font-size:small;background-color:rgb(255,255,255);text-decoration-style:initial;text-decoration-color:initial;float:none;display:inline">It will be interesting to see how this law develops to clarify these questions especially in the ICT sector. It must be noted though, that there are undertakings that continue to engage in restrictive trade practices within the sector. I think discussions on dominance should focus on abuse and restrictive trade practices, regardless of the entity in the sector. Being dominant is no offence. Sometimes small players in order to gain market share engage in restrictive trade practices. </span></div><div class="gmail_default"><span style="color:rgb(32,18,77);font-family:tahoma,sans-serif;font-size:small;background-color:rgb(255,255,255);text-decoration-style:initial;text-decoration-color:initial;float:none;display:inline"><br></span></div><div class="gmail_default"><span style="color:rgb(32,18,77);font-family:tahoma,sans-serif;font-size:small;background-color:rgb(255,255,255);text-decoration-style:initial;text-decoration-color:initial;float:none;display:inline"><span style="text-decoration-style:initial;text-decoration-color:initial;float:none;display:inline">The CAK is developing a number of regulations to clarify provisions and provide for relevant procedures under the Act. Once these are done, there should be greater clarity in the sector. </span>It will over time need to develop the competence, courage and muscle in the scale of the EU Competition Commissioner, who recently slapped Google and Qualcomm with EUR 2.42 billion and EUR 997 million fines respectively for </span><span style="color:rgb(32,18,77);font-family:tahoma,sans-serif">abusing their dominance. </span></div><div class="gmail_default" style="font-family:tahoma,sans-serif;color:rgb(32,18,77)"><b style="color:rgb(34,34,34)"><font color="#20124d"><br></font></b></div><div class="gmail_default" style="font-family:tahoma,sans-serif;color:rgb(32,18,77)"><b style="color:rgb(34,34,34)"><font color="#20124d"><br></font></b></div><div class="gmail_default" style="font-family:tahoma,sans-serif;color:rgb(32,18,77)"><b style="color:rgb(34,34,34)"><font color="#20124d">Victor Kapiyo</font></b><br></div><div><div dir="ltr" class="m_-6523558468181606586gmail_signature"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div><font face="tahoma, sans-serif" size="1" color="#351c75">Partner | <i>Lawmark Partners LLP</i></font></div><div><font color="#000000" face="tahoma, sans-serif" size="1"><i>Suite No. 8, Centro House, Westlands, Nairobi | </i></font><i style="color:rgb(0,0,0);font-family:tahoma,sans-serif;font-size:x-small">Web: <a href="http://www.lawmark.co.ke" target="_blank">www.lawmark.co.ke</a> </i></div><font face="tahoma, sans-serif" size="1" color="#000000">==============================<wbr>======================<br><i>“Your attitude, not your aptitude, will determine your altitude” Zig Ziglar<br></i></font><br></div></div></div></div></div></div></div></div></div></div></div></div><br></div><br><div class="gmail_quote"><div><div class="h5"><div dir="ltr">On Tue, 31 Jul 2018 at 19:59, Walubengo J via kictanet <<a href="mailto:kictanet@lists.kictanet.or.ke" target="_blank">kictanet@lists.kictanet.or.ke</a><wbr>> wrote:<br></div></div></div><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex"><div><div class="h5"><div><div style="font-family:Helvetica Neue,Helvetica,Arial,sans-serif;font-size:16px"><div style="font-family:Helvetica Neue,Helvetica,Arial,sans-serif;font-size:16px"><div></div>
<div>@Andrew,</div><div><br></div><div>Very true. Do not punish the dominant player, as long as they are NOT abusing their dominance. Agreed.</div><div><br></div><div>Imagine this country where the dominant player is NOT guilty of abusing the dominance. He is innocently working hard, plays clean, innovates regularly and thus retains dominance year in year out - without hurting anyone.</div><div><br></div><div>How will that address the fact that <span><span style="color:rgb(0,0,0);font-family:"Helvetica Neue",Helvetica,Arial,sans-serif;font-size:16px">when that innocent dominant player sneezes,</span></span></div><div><br></div><div>1) 67 % of mobile subscribers will not make a voice call.</div><div>2) close to 70% of Kenyans will not connect on the internet.</div><div>3) 81% of mobile money subscribers will not transact (basically the economy can come to a halt)</div><div>(Ref Q3 2017/18 CA Report @ <a href="http://www.ca.go.ke/images/downloads/STATISTICS/Sector%20Statistics%20Report%20Q3%202017-18%20.pdf" rel="nofollow" target="_blank">http://www.ca.go.ke/images/<wbr>downloads/STATISTICS/Sector%<wbr>20Statistics%20Report%20Q3%<wbr>202017-18%20.pdf</a></div><div><br></div><div>Listers, this debate should never be about Safaricom per se, nor its competition. It is about what options Kenya as a nation has, in the unlikely event that Safaricom goes down - which we must admit is rare, but we still must plan for such events.</div><div><br></div><div>One option is to work extra hard to ensure that Safcom never goes down. The other option is to ensure that if it does, the Statistics above are contained within a 'manageable size' of the market. My take is that we should try and do both.</div><div><br></div><div>If the above principle is agreed. The rest, as they say will be details.</div><div><br></div><div>walu.</div><div><br></div><div><br></div>
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On Tuesday, July 31, 2018, 12:45:44 PM GMT+3, Andrew Alston via kictanet <<a href="mailto:kictanet@lists.kictanet.or.ke" target="_blank">kictanet@lists.kictanet.or.ke</a><wbr>> wrote:
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span>I have another take on this – in terms of dominance and monopolies</span></p>
<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span> </span></p>
<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span>Firstly – let me start by saying that I don’t have a problem with what I would call de-facto monopolies – that being, a monopoly that is a monopoly purely by virtue of being the primary (or only
significant) player in the space – and I’m far from convinced that declaring such a player dominant and then trying to deliberately degrade their dominance is the way to go.</span></p>
<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span> </span></p>
<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span>That being said – which such dominant players and potentially monopolies may exist – the key to dealing with them is to ensure that the regulatory environment exists to allow for the emergence of
competition. Basically – if a player is either dominant or a monopoly – it must be constrained from behaving in a manner that would supress the emergence of true competition that is created by the free market (I.E I believe that there should be strict limitations
on anti-competitive practices that should be strongly and vigorously enforced). This however is different from saying, a player is dominant or a monopoly, and hence we must split them up or force them into actions which actively CREATE the competition – they
are very different things.</span></p>
<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span> </span></p>
<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span>A classic example of this is the situation we find ourselves in with AFRINIC – They are a de-facto monopoly on the continent being the only RIR – and this would not be a problem if they a.) allowed
their customers to transfer out to another RIR off continent or b.) the ICP-2 regulations allowed for the foundation of a second RIR – since (b) isn’t there, and since AFRINIC point blank refuses to implement (a) using the excuse that “the community hasn’t
passed such” – I would argue they are behaving in a manner that is anti-competitive and should be subject to sanction under anti-trust regulations.</span></p>
<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span>However – in the same vein – I would not advocate that AFRINIC be forced to create a competitor – they are free to keep their monopoly on continent so long as they allow their customers to up and
go elsewhere should they choose to do so.</span></p>
<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span> </span></p>
<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span>The same thing applies to any dominant player – ensure they are not using that dominance to supress competition and remove the ability for competition to rise – and I have no problem with it. However,
allowing them to remain dominant while adopting anti-competitive practices – that is another story all together.</span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span>So the question we need to ask ourselves is – are we seeing anti-competitive practices and practices designed to enforce dominance – if yes – we have a problem – if no – let the free market take
care of the issue.</span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span>Just my thought</span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span>Andrew</span></p>
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<div class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885yqt4575478992" id="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885yqt24373"><p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><b><span lang="EN-US">From:</span></b><span lang="EN-US"> kictanet <kictanet-bounces+andrew.<wbr>alston=<a href="mailto:liquidtelecom.com@lists.kictanet.or.ke" target="_blank">liquidtelecom.com@<wbr>lists.kictanet.or.ke</a>>
<b>On Behalf Of </b>Ali Hussein via kictanet<br clear="none">
<b>Sent:</b> 31 July 2018 10:37<br clear="none">
<b>To:</b> Andrew Alston <<a href="mailto:Andrew.Alston@liquidtelecom.com" target="_blank">Andrew.Alston@liquidtelecom.<wbr>com</a>><br clear="none">
<b>Cc:</b> Ali Hussein <<a href="mailto:ali@hussein.me.ke" target="_blank">ali@hussein.me.ke</a>>; Admin CampusCiti via kictanet <<a href="mailto:kictanet@lists.kictanet.or.ke" target="_blank">kictanet@lists.kictanet.or.ke</a><wbr>><br clear="none">
<b>Subject:</b> Re: [kictanet] Telcos CEOs on the spot in push to declare Safaricom dominant</span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span>@Walu</span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span>Your statement below sort of negates all that you have said, nah? :-)</span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><b><span>Infact MPESA is BOTH a platform and a product at the same time. They just chose to play by product rules when it is convenient to shield them from platform responsibilities.</span></b><span></span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span>We can continue this conversation further over a biryani lunch.. (And Steve Chege is welcome to join us) :-)</span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span>Regards</span></p>
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<p style="margin:0cm;margin-bottom:.0001pt"><b><span style="font-size:10.0pt">Ali Hussein</span></b></p>
<p style="margin:0cm;margin-bottom:.0001pt"><b><span style="font-size:10.0pt">Principal</span></b></p>
<p style="margin:0cm;margin-bottom:.0001pt"><b><span style="font-size:10.0pt">AHK & Associates</span></b></p>
<p style="margin:0cm;margin-bottom:.0001pt"><span style="font-size:10.0pt"> </span></p>
<p style="margin:0cm;margin-bottom:.0001pt"><span style="font-size:10.0pt">Tel: +254 713 601113</span></p>
<p style="margin:0cm;margin-bottom:.0001pt"><span style="font-size:10.0pt">Twitter: @AliHKassim</span></p>
<p style="margin:0cm;margin-bottom:.0001pt"><span style="font-size:10.0pt">Skype: abu-jomo</span></p>
<p style="margin:0cm;margin-bottom:.0001pt"><span style="font-size:10.0pt">LinkedIn:
<a shape="rect" href="http://ke.linkedin.com/in/alihkassim" rel="nofollow" target="_blank">
http://ke.linkedin.com/in/<wbr>alihkassim</a></span></p>
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<span style="font-size:9.0pt">13th Floor , Delta Towers, Oracle Wing,</span><span style="font-size:12.0pt"></span></p>
<p style="margin:0cm;margin-bottom:.0001pt">
<span style="font-size:9.0pt">Chiromo Road, Westlands,</span><span style="font-size:12.0pt"></span></p>
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<span style="font-size:9.0pt">Nairobi, Kenya.</span><span style="font-size:12.0pt"></span></p>
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</span><span style="font-size:7.5pt">Any information of a personal nature expressed in this email are purely mine and do not necessarily reflect the official positions of the organizations that I work with.</span>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal">On Tue, Jul 31, 2018 at 10:15 AM, Walubengo J <<a shape="rect" href="mailto:jwalu@yahoo.com" rel="nofollow" target="_blank">jwalu@yahoo.com</a>> wrote:</p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:12.0pt">@Ali,</span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:12.0pt">I agree with everything you say below except on the platform thing. MPESA is a indeed a platform, even by your own definition that you shared below, which states: </span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:12.0pt">Platforms are structures that allow multiple products to be built within the same technical framework.</span><span style="font-size:12.0pt"></span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:12.0pt">I had my own definition from a leading researcher in the regulatory space, J. Bauer, (</span><span style="font-size:12.0pt"><a shape="rect" href="https://pdfs.semanticscholar.org/2c72/106282dfe7b5a35e5981cf02fe656cc7a5d7.pdf" rel="nofollow" target="_blank">https://pdfs.semanticscholar.<wbr>org/2c72/<wbr>106282dfe7b5a35e5981cf02fe656c<wbr>c7a5d7.pdf</a>)</span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:12.0pt"> </span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885m6546629611900376944ydp963c90ds1"><span style="font-size:12.0pt">He defines a platform as follows:</span></span><span style="font-size:12.0pt"></span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885m6546629611900376944ydp963c90ds1"><span style="font-size:12.0pt">“</span></span><span style="font-size:12.0pt">technological foundations upon which other products, services,and
systems are built<span class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885m6546629611900376944ydp963c90ds1">”</span><span class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885m6546629611900376944ydp963c90dapple-converted-space"> </span></span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:12.0pt"> </span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:12.0pt">MPESA has provided the foundation and APIs upon which banking, eCommerce, Payment Gateways, etc have been built. It is a platform, irrespective of the fact that initially it was
not designed as such. Even FB, Google, AWS, and many others were initially private entities but organically grew into being platforms.</span><span style="font-size:12.0pt"></span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:12.0pt">Which really is the regulatory crux of the matter. The owners of these emerging platforms still want to play by the old rules when their systems were Products, conveniently ignoring
the fact that they are actually now Platforms. </span><span style="font-size:12.0pt"></span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:12.0pt"> </span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:12.0pt">Infact MPESA is BOTH a platform and a product at the same time. They just chose to play by product rules when it is convenient to shield them from platform responsibilities.</span><span style="font-size:12.0pt"></span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:12.0pt">But it is an interesting and wide topic. Maybe Safcom should sponsor a 1week e-discussion to enable this to be ventilated.</span><span style="font-size:12.0pt"></span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:12.0pt">walu.</span><span style="font-size:12.0pt"></span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt">On Monday, July 30, 2018, 8:11:40 PM GMT+3, Ali Hussein <<a shape="rect" href="mailto:ali@hussein.me.ke" rel="nofollow" target="_blank">ali@hussein.me.ke</a>> wrote:
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt">@Walu</span><span style="font-size:10.0pt"></span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt">I was baiting you..and you fell for it.. LOL</span><span style="font-size:10.0pt"></span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt">!</span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt">Let me first address the issue of Mpesa and
</span><span style="font-size:10.0pt"></span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt">the
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt">allegations that it is a Platform. I recommend the book
<b><a shape="rect" href="https://www.amazon.com/Platform-Revolution-Networked-Transforming-Economyand-ebook/dp/B00ZAT8VS4" rel="nofollow" target="_blank">Platform Revolution</a></b> by Geoffrey Parker, Marshall Van Alsytne and Sangeet Paul Choudrey. </span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt">According to Tech <a shape="rect" href="http://jonathanclarks.blogspot.de/2009/06/what-is-difference-between-platform-and.html" rel="nofollow" target="_blank"><span style="text-decoration:none">blogger
Jonathan Clarks</span></a>, “Platforms are structures that allow multiple products to be built within the same technical framework. Companies invest in platforms in the hope that future products can be developed faster and cheaper, than if they built them
stand-alone. Today it is much more important to think of a platform as a business framework. By this I mean a framework that allows multiple business models to be built and supported. For instance, Amazon is an online retail framework. Amazon started by selling
books. Over time they have expanded to selling all sorts of other things. Apple iTunes started by selling tracks and now uses the same framework to sell videos.”</span><span style="font-size:10.0pt"></span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt">So back to my issue of whether M-Pesa is a Platform. M-Pesa wasn't built from the ground up to be a Platform. To claim that M-Pesa is a Platform is like saying that
a <a shape="rect" href="https://www.google.com/search?q=VW+KOMBI&rlz=1C5CHFA_enKE800KE800&tbm=isch&source=iu&ictx=1&fir=oebAUZqbFmXsSM%252Ch9Cx7Tj_4hnt2M%252C_&usg=__V7SZyrLUT-w4mOWCnPSbExol-8A%3D&sa=X&ved=2ahUKEwjf2O6docfcAhXCxoUKHZuTCXIQ_h0wFXoECAoQCA&biw=1280&bih=726#imgrc=oebAUZqbFmXsSM" rel="nofollow" target="_blank">
VW Kombi </a>is a <a shape="rect" href="https://www.toyota.com/landcruiser/" rel="nofollow" target="_blank">
Toyota VX </a> just because some Jua Kali mechanic decided to put a </span><span style="font-size:10.0pt">5.7-Liter DOHC 32-Valve V8 with Dual Independent Variable Valve Timing with intelligence (VVT-i);
381 hp @ 5600 rpm; 401 lb.-ft. @ 3600 rpm into the Kombi - #JustSaying.. :-) With all due respect to Safaricom of course.. </span><span style="font-size:10.0pt"></span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt">Platforms are an amazing thing to behold. Apple IOS is a Platform. The Amazon Ecosystem is a Platform. Google's Android is a Platform. Facebook is
a Platform. You get my point.</span><span style="font-size:10.0pt"></span></p>
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<p style="margin:0cm;margin-bottom:.0001pt;font-stretch:normal"><span style="font-size:10.0pt">We spend alot of time bashing Safaricom. And it is as it should be since they are the Big Boys/Girls in our part of the
wood</span><span style="font-size:10.0pt"></span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt">s</span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt">..But Safaricom has so many problems..I wish we can exploit them instead of wasting so much energy on them.. The world is full of companies that Governments were unable
to break up</span><span style="font-size:10.0pt"></span></p>
<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt">but the market took care of that.. The regulatory landscape is not optimal for sure..and that can be worked on..But we also need to look inwards..Barclays is already
taking steps with Timiza, so is HF..And of course there is Equity..The fact is this - We are all fighting for the 80% of the 10% market Safaricom has in mobile money..#GoFigure</span></p>
<p style="margin:0cm;margin-bottom:.0001pt;font-stretch:normal"><span style="font-size:10.0pt"> </span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal" style="font-stretch:normal"><span style="font-size:10.0pt">I agree with you that the Regulator needs to get up to speed with the new reality. However it's not that simple. Remember the tussle between
the CA (Communications Authority) and CAK (Competitions Authority of Kenya) on the Market Study? Add to this mix the CMA (Capital Markets Authority) and CBK (Central Bank of Kenya) to get an idea of how tough regulation is today. At the height of the dominance
conversation last year I attempted to make a sense of it. See link below:-</span><span style="font-size:10.0pt"></span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt"> </span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal" style="font-stretch:normal"><span style="font-size:10.0pt"> </span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal" style="font-stretch:normal"><span style="font-size:10.0pt"><a shape="rect" href="https://www.linkedin.com/pulse/dominance-regulation-new-strategic-imperatives-ali-hussein-kassim/" rel="nofollow" target="_blank">Dominance, Regulation and the New
Strategic Imperatives </a></span><span style="font-size:10.0pt"></span></p>
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<p style="margin:0cm;margin-bottom:.0001pt;font-stretch:normal"><span style="font-size:10.0pt"> </span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal" style="font-stretch:normal"><span style="font-size:10.0pt">Here's a fact that most of us don't want to come to terms with. As untidy as free markets are, they are more efficient than Governments.
Chairman William Kisang of the House C</span><span style="font-size:10.0pt">ommittee on Communication, Information and Innovation is my hero for seeing off this continuous rant on Dominance. Now he must take it one step
further and create a Super Regulator (It can be that the different regulators and arms of government create a working committee that meets regularly and share notes to ensure they are on the same page when it comes to Innovation and New Business Models that
transcend industries.</span><span style="font-size:10.0pt"></span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal" style="font-stretch:normal"><span style="font-size:10.0pt">We must move forward. Safaricom's 'dominance' will be taken care of by the Market. With a little help from a forward looking regulator of
course..I'm willing to bet my next year's salary on it. :-)</span><span style="font-size:10.0pt"></span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal" style="font-stretch:normal"><span style="font-size:10.0pt">Regards</span><span style="font-size:10.0pt"></span></p>
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<div id="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885m_6546629611900376944ydp34839ea7yiv3237982628m_9194627410604399823AppleMailSignature">
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><b><span style="font-size:10.0pt">Ali Hussein</span></b><span style="font-size:10.0pt"></span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><b><span style="font-size:10.0pt">Principal</span></b><span style="font-size:10.0pt"></span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><b><span style="font-size:10.0pt">AHK & Associates</span></b><span style="font-size:10.0pt"></span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:13.5pt">+254 0713 601113 </span></p>
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<p style="margin:0cm;margin-bottom:.0001pt"><span style="font-size:10.0pt">Twitter: @AliHKassim</span></p>
<p style="margin:0cm;margin-bottom:.0001pt"><span style="font-size:10.0pt">Skype: abu-jomo</span></p>
<p style="margin:0cm;margin-bottom:.0001pt"><span style="font-size:10.0pt">LinkedIn: <a shape="rect" href="http://ke.linkedin.com/in/alihkassim" rel="nofollow" target="_blank">http://ke.linkedin. com/in/alihkassim</a></span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt">"We are what we repeatedly do. Excellence, therefore, is not an act but a habit." ~ Aristotle</span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt">Sent from my iPad</span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal" style="margin-bottom:12.0pt"><span style="font-size:10.0pt"><br clear="none">
On 30 Jul 2018, at 6:35 PM, Walubengo J <<a shape="rect" href="mailto:jwalu@yahoo.com" rel="nofollow" target="_blank">jwalu@yahoo.com</a>> wrote:</span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:12.0pt">@Ali, am with Eng Kariuki on this one ;-)</span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:12.0pt">Indeed we are in the age of platforms (read MPESA as an example). And yes we can't blame Safcom for milking MPESA to the hilt (eg. most government service mobile
money payments have a preferred providers ;-). </span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:12.0pt">I would rather blame the regulator for not seeing this coming, and when they finally saw it, they dilly dallied to intervene (remember 2year market study?) Furthermore,
previous thinking that platforms are sacred corporate jewels not to be touched or that all markets will eventually self-correct have been proved wrong elsewhere with FB, Google, etc coming under heavy 'regulatory fire' in the recent past.</span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:12.0pt"> </span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:12.0pt">I dont claim to have the answer to Safcom dominance, but I can claim very strongly that the market forces will never self-correct the dominant position that Safcom
continues to enjoy. </span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:12.0pt"> </span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:12.0pt">Is dominance a good thing? Yes, for Safcom. Is it a bad thing? Yes, for a country that may realize that they cannot transmit election results simply because the
competing providers dont have presence in some areas under their zones. Or that you can't access internet or send mobile money coz Safcom network sneezed for an hour or two as it happened a week ago. </span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:12.0pt"> </span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:12.0pt">I have said this before, the dominance conversation must be rise above competition issues and begin to be interrogated at the level of national security. If Safcom
beats competition to pulp, it is good for its shareholders (me with my very small shares included), BUT it is bad thing for the country that may discover they have no commensurate alternatives.</span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:12.0pt"> </span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:12.0pt">That said, I dont believe baby sitting competition to beat Safcom is the answer either. </span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:12.0pt"> </span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:12.0pt">Only a new innovation, perhaps the next 'MPESA on a Blockchain' sort of thing will be able to give Safcom the challenge it deserves.</span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:12.0pt">walu.</span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt">On Monday, July 30, 2018, 6:00:10 PM GMT+3, Admin CampusCiti via kictanet <<a shape="rect" href="mailto:kictanet@lists.kictanet.or.ke" rel="nofollow" target="_blank">kictanet@lists.kictanet.or.ke</a>
> wrote: </span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt"> </span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt">John</span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt">Fortunately I’m not a graduate of Telecommunications Law.. So I can see clearly.. #JustSaying..</span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt"> </span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt">I have always advocated for a review of the Framework on competition in not just the Telco sector but most sectors. The Age of Platforms Is here my brother. And we
ignore it or focus on old school models of competition at our own risk. The Government is a very inefficient way to correct market conditions. Look at what is happening the world over. </span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt"> </span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal" style="margin-bottom:12.0pt"><span style="font-size:10.0pt">Why don’t we go ahead and also declare Uber dominant? Let’s engage on this issue and not shoot from the hip. Chairman Kisang is my hero.
He must have been smoking the right thing that morning. :-) </span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><b><span style="font-size:10.0pt">Ali Hussein</span></b><span style="font-size:10.0pt"></span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:13.5pt">+254 0713 601113 </span></p>
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<div>
<p style="margin:0cm;margin-bottom:.0001pt"><span style="font-size:10.0pt">Twitter: @AliHKassim</span></p>
<p style="margin:0cm;margin-bottom:.0001pt"><span style="font-size:10.0pt">Skype: abu-jomo</span></p>
<p style="margin:0cm;margin-bottom:.0001pt"><span style="font-size:10.0pt">LinkedIn: <a shape="rect" href="http://ke.linkedin.com/in/alihkassim" rel="nofollow" target="_blank">http://ke.linkedin. com/in/alihkassim</a></span></p>
<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt">Blog: <a shape="rect" href="http://www.alyhussein.com/" rel="nofollow" target="_blank">www.alyhussein.com</a></span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt"> </span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt">"Discovery consists in seeing what everyone else has seen and thinking what no one else has thought". ~ Albert Szent-Györgyi</span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt">Sent from my iPad</span></p>
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On 30 Jul 2018, at 5:37 PM, John Kariuki via kictanet <<a shape="rect" href="mailto:kictanet@lists.kictanet.or.ke" rel="nofollow" target="_blank">kictanet@lists.kictanet.or.ke</a> > wrote:</span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt">Listers, Ali. </span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt">It is a fact that "In certain telecommunications market segments in Kenya, SAFARICOM is dominant. Any graduate of telecommunications law will confirm that. It has
nothing to do with punishing success or innovation. It is a matter of telecommunications and competition laws. If it was in UK or EU I have no doubt that the issue would not have dragged this long. Remember we also have the 'small problem' of Data Protection
which has dragged for at least 10 years. Just to repeat what one consultant told my then bosses many years ago and I quote "The fact that you refuse to see a problem does not mean that it does not exist". If only we had listened! </span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt"><a shape="rect" href="https://go.onelink.me/107872968?pid=InProduct&c=Global_Internal_YGrowth_AndroidEmailSig__AndroidUsers&af_wl=ym&af_sub1=Internal&af_sub2=Global_YGrowth&af_sub3=EmailSignature" rel="nofollow" target="_blank">Sent from Yahoo Mail on Android</a></span></p>
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<p class="m_-6523558468181606586m_-1876287531052255075ydp620ae8ffyiv5651232885MsoNormal"><span style="font-size:10.0pt">On Mon, Jul 30, 2018 at 14:37, Barrack Otieno via kictanet</span></p>
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The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.<br>
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KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.<br>
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The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.<br>
<br>
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.<br>
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