<div><p style="margin:0px;font-stretch:normal;font-size:12px;line-height:normal;font-family:Helvetica"><span style="font-size:12pt">Safaricom’s parent company sued its Italian competitor in 2013. “Vodafone Sues Telecom Italia for €1bn Over 'Dominance Abuse' Is Kenya unique market void of proper ex-ante, ex-post regulation. </span></p>
<p style="margin:0px;font-stretch:normal;font-size:12px;line-height:normal;font-family:Helvetica"><span style="font-size:12pt"><a href="http://ibtimes.co.uk/vodafone-telec">ibtimes.co.uk/vodafone-telec</a>… </span></p><p style="margin:0px;font-stretch:normal;font-size:12px;line-height:normal;font-family:Helvetica"><span style="font-size:12pt"><br></span></p><h1 class="title" style="font-size:1.5558em;line-height:1.2141em;margin-top:0px;margin-bottom:0.5em;max-width:100%;color:rgb(27,27,27);font-family:-apple-system-font">Vodafone Sues Telecom Italia for €1bn Over 'Dominance Abuse'</h1><div itemprop="author" itemscope="" itemtype="http://schema.org/Person" style="max-width:100%">By <span style="max-width:100%"><a href="https://www.ibtimes.co.uk/reporters/jerin-mathew" itemprop="url" rel="author" target="_top" style="text-decoration:none;color:rgb(65,110,210);max-width:100%"><span itemprop="name" style="max-width:100%">Jerin Mathew</span> </a></span><span style="max-width:100%">On 8/5/13 at 7:27 AM </span></div><img alt="Telecom Italia" src="https://d-ibtimes-co-uk.cdn.ampproject.org/i/s/d.ibtimes.co.uk/en/full/396389/telecom-italia.jpg?w=650&e=4d2986fe6adbbf709ec3dfd61d822899" class="extendsBeyondTextColumn" style="max-width: none; margin: 0.5em auto; display: block; height: auto; width: 414px; -webkit-margin-start: -20px;"><span itemprop="caption" style="max-width:100%;margin-top:0.25em;margin-bottom:0.25em">A Telecom Italia antenna booster is seen in northern Rome</span><p style="max-width:100%;color:rgb(27,27,27);font-family:-apple-system-font;font-size:19px">Vodafone's Italian subsidiary is suing Telecom Italia for allegedly abusing its dominant position in the country as the British telecom giant is seeking to overcome hurdles impeding profitability.</p><p style="max-width:100%;color:rgb(27,27,27);font-family:-apple-system-font;font-size:19px">Vodafone Italy which is 77% owned by Vodafone is seeking damages of more than €1bn ($1.3bn, £869m) from Telecom Italia. The Italian company has committed a series of abuses from 2008 to 2013 "with the intention and effect of impeding growth in competition in the Italian fixed-line market", claims Vodafone.</p><p style="max-width:100%;color:rgb(27,27,27);font-family:-apple-system-font;font-size:19px">Vodafone charged that it suffered severe customer loss due to Telecom Italia's dominant position in the market.</p><p style="max-width:100%;color:rgb(27,27,27);font-family:-apple-system-font;font-size:19px">In addition, Telecom Italia allegedly restricted Vodafone Italy's ability to grow its fixed-line business, and forced it to pay artificially high costs to compete in the market.</p><p style="max-width:100%;color:rgb(27,27,27);font-family:-apple-system-font;font-size:19px"><strong style="max-width:100%">Rising Competition in Europe</strong></p><p style="max-width:100%;color:rgb(27,27,27);font-family:-apple-system-font;font-size:19px">Last month, <a href="https://www.ibtimes.co.uk/vodafone-q1-earnings-competition-price-pressure-492417" target="_top" style="text-decoration:none;color:rgb(65,110,210);max-width:100%">Vodafone said</a> its first quarter income and sales were hit by regulation, rising competition and the ongoing recession across Europe.</p><p style="max-width:100%;color:rgb(27,27,27);font-family:-apple-system-font;font-size:19px">First quarter service revenue at Vodafone fell 3.5% to £10.16bn, which is the fourth successive quarterly decline. In Italy and Spain, the company posted double-digit falls.</p><p style="max-width:100%;color:rgb(27,27,27);font-family:-apple-system-font;font-size:19px">Service revenue in southern Europe plunged 14.4%. Italy was down 17.6% owing to "price reductions, a deteriorating economic environment and the ongoing impact of steep mobile-termination-rate cuts".</p><p style="max-width:100%;color:rgb(27,27,27);font-family:-apple-system-font;font-size:19px">Spain fell 10.6% owing to a "lower customer base and the increased popularity of discounted-converged consumer offers in that market".</p><p style="max-width:100%;color:rgb(27,27,27);font-family:-apple-system-font;font-size:19px">With the lawsuit, Vodafone intends to tackle its troubles in Italy where it finds market conditions tough.</p><p style="max-width:100%;color:rgb(27,27,27);font-family:-apple-system-font;font-size:19px"><strong style="max-width:100%">Market Dominance Questioned</strong></p><p style="max-width:100%;color:rgb(27,27,27);font-family:-apple-system-font;font-size:19px">In May, Italy's competition authority imposed a fine of about €140m on Telecom Italia for abusing its dominant market position as owner and manager of the country's largest fixed-line telephone network.</p><p style="max-width:100%;color:rgb(27,27,27);font-family:-apple-system-font;font-size:19px">Pressured by peers and authorities, the company is planning to spin off its fixed-line copper network that gives it a competitive edge.</p><p style="max-width:100%;color:rgb(27,27,27);font-family:-apple-system-font;font-size:19px">The Vodafone case filed at the Court of Milan is the latest blow to Telecom Italia CEO Franco Bernabè, who is looking to restructure the group amid falling revenues in its fixed-line and online business. It had to write down a further €2.2bn in goodwill for the first half of the year, increasing its impairments close to €14bn since the start of 2011.</p><p style="max-width:100%;color:rgb(27,27,27);font-family:-apple-system-font;font-size:19px">Telecom Italia rejected the allegations of Vodafone and said it was confident of demonstrating the correctness of its behaviour.</p><p style="max-width:100%;color:rgb(27,27,27);font-family:-apple-system-font;font-size:19px">It is also appealing against the antitrust fine, which was imposed after a three-year probe prompted by rivals Wind, Italy's third-largest mobile operator, and broadband company Fastweb.</p></div><div><br><div class="gmail_quote"><div dir="ltr">On Mon, 30 Jul 2018 at 18:37, Walubengo J via kictanet <<a href="mailto:kictanet@lists.kictanet.or.ke">kictanet@lists.kictanet.or.ke</a>> wrote:<br></div><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex"><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>@Ali, am with Eng Kariuki on this one ;-)</div><div><br></div><div>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 ;-). </div><div><br></div><div>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.</div><div><br></div><div>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. </div><div><br></div><div>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. </div><div><br></div><div>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.</div><div><br></div><div>That said, I dont believe baby sitting competition to beat Safcom is the answer either. </div><div><br></div><div>Only a new innovation, perhaps the next 'MPESA on a Blockchain' sort of thing will be able to give Safcom the challenge it deserves.</div><div><br></div><div>walu.</div><div><br></div>
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On Monday, July 30, 2018, 6:00:10 PM GMT+3, Admin CampusCiti via kictanet <<a href="mailto:kictanet@lists.kictanet.or.ke" target="_blank">kictanet@lists.kictanet.or.ke</a>> wrote:
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</div></div></div></div><div><div style="font-family:Helvetica Neue,Helvetica,Arial,sans-serif;font-size:16px"><div id="m_-309103656694495690ydp6c179bf3yahoo_quoted_3447169549" class="m_-309103656694495690ydp6c179bf3yahoo_quoted"><div style="font-family:'Helvetica Neue',Helvetica,Arial,sans-serif;font-size:13px;color:#26282a"><div></div></div></div></div></div><div><div style="font-family:Helvetica Neue,Helvetica,Arial,sans-serif;font-size:16px"><div id="m_-309103656694495690ydp6c179bf3yahoo_quoted_3447169549" class="m_-309103656694495690ydp6c179bf3yahoo_quoted"><div style="font-family:'Helvetica Neue',Helvetica,Arial,sans-serif;font-size:13px;color:#26282a"><div><div id="m_-309103656694495690ydp6c179bf3yiv5970907676"><div>John<div><br clear="none"></div><div>Fortunately I’m not a graduate of Telecommunications Law.. So I can see clearly.. #JustSaying..</div><div><br clear="none"></div><div>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. </div><div><br clear="none"></div><div>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. :-) <br clear="none"><br clear="none"><div id="m_-309103656694495690ydp6c179bf3yiv5970907676AppleMailSignature"><div><span><b>Ali Hussein</b></span></div><div><br clear="none"></div><div style="font-family:Helvetica;font-size:medium">+254 0713 601113 </div><div style="font-family:Helvetica;font-size:medium"><br clear="none"></div><div><p style="margin:0in 0in 0pt"><span>Twitter: @AliHKassim</span></p><span><font></font></span><p style="margin:0in 0in 0pt"><span>Skype: abu-jomo</span></p><p style="margin:0in 0in 0pt"><span>LinkedIn: <a shape="rect" href="http://ke.linkedin.com/in/alihkassim" rel="nofollow" target="_blank">http://ke.linkedin.com/in/alihkassim</a><a shape="rect" href="http://ke.linkedin.com/in/alihkassim" rel="nofollow" target="_blank"><span style="text-decoration:none"></span></a></span></p><span><font></font></span><p style="margin:0in 0in 0pt"></p><font><span>Blog: <a shape="rect" href="http://www.alyhussein.com/" rel="nofollow" target="_blank">www.alyhussein.com</a></span><br clear="none"></font></div><div><span><br clear="none"></span></div><div>"Discovery consists in seeing what everyone else has seen and thinking what no one else has thought". ~ Albert Szent-Györgyi</div><div><span><br clear="none"></span></div>Sent from my iPad</div><div class="m_-309103656694495690ydp6c179bf3yiv5970907676yqt2209036684" id="m_-309103656694495690ydp6c179bf3yiv5970907676yqt09146"><div><br clear="none">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:<br clear="none"><br clear="none"></div><blockquote type="cite"><div>Listers, Ali. <div id="m_-309103656694495690ydp6c179bf3yiv5970907676yMail_cursorElementTracker_1532960169939">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! <br clear="none"><div id="m_-309103656694495690ydp6c179bf3yiv5970907676yMail_cursorElementTracker_1532960140259"><div id="m_-309103656694495690ydp6c179bf3yiv5970907676yMail_cursorElementTracker_1532960107834"><br clear="none"><br clear="none"><div id="m_-309103656694495690ydp6c179bf3yiv5970907676ymail_android_signature"><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></div> <br clear="none"> <blockquote style="margin:0 0 20px 0"> <div style="font-family:Roboto,sans-serif;color:#6d00f6"> <div>On Mon, Jul 30, 2018 at 14:37, Barrack Otieno via kictanet</div><div><<a shape="rect" href="mailto:kictanet@lists.kictanet.or.ke" rel="nofollow" target="_blank">kictanet@lists.kictanet.or.ke</a>> wrote:</div> </div> <div style="padding:10px 0 0 20px;margin:10px 0 0 0;border-left:1px solid #6d00f6"> _______________________________________________<br clear="none">kictanet mailing list<br clear="none"><a shape="rect" href="mailto:kictanet@lists.kictanet.or.ke" rel="nofollow" target="_blank">kictanet@lists.kictanet.or.ke</a><br clear="none"><a shape="rect" href="https://lists.kictanet.or.ke/mailman/listinfo/kictanet" rel="nofollow" target="_blank">https://lists.kictanet.or.ke/mailman/listinfo/kictanet</a><br clear="none">Twitter: <a shape="rect" href="http://twitter.com/kictanet" rel="nofollow" target="_blank">http://twitter.com/kictanet</a><br clear="none">Facebook: <a shape="rect" href="https://www.facebook.com/KICTANet/" rel="nofollow" target="_blank">https://www.facebook.com/KICTANet/</a><br clear="none">Domain Registration sponsored by <a shape="rect" href="http://www.eacdirectory.co.ke" rel="nofollow" target="_blank">www.eacdirectory.co.ke</a><br clear="none"><br clear="none">Unsubscribe or change your options at <a shape="rect" href="https://lists.kictanet.or.ke/mailman/options/kictanet/kariuki_jn%40yahoo.com" rel="nofollow" target="_blank">https://lists.kictanet.or.ke/mailman/options/kictanet/kariuki_jn%40yahoo.com</a><br clear="none"><br clear="none">The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. 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