<div dir="ltr">Listers,<div><br></div><div>What figure internally has Safaricom been working with given that an MTR reduction was inevitable? The last cut was in 2015, before that, I think it was in 2010, that precipitated the great tariff wars. I seem to recall that some chaps called Analysis Mason were called in to carry out a study. My question is, based on the LRAIC (long run average incremental costs) model, what figure does Safaricom come up with?</div><div><br></div><div>Regards,</div><div><br></div><div>JG Mbugua</div><div>+254 721 321819<br></div></div><br><div class="gmail_quote"><div dir="ltr" class="gmail_attr">On Tue, Jan 25, 2022 at 8:19 AM Ali Hussein 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:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padding-left:1ex"><div dir="ltr"><div dir="ltr"><div class="gmail_default" style="font-family:georgia,serif">Kivuva and listers</div><div class="gmail_default" style="font-family:georgia,serif"><br></div><div class="gmail_default" style="font-family:georgia,serif">This is a very interesting case and could probably serve as a case study worldwide. At this point in time I have more questions than answers:-</div><div class="gmail_default" style="font-family:georgia,serif"><br></div><div class="gmail_default" style="font-family:georgia,serif">1. The Telco sector is an interesting one. Where do we draw the line between Market Power, abuse of Market Power, Free Markets, centralized control of power by Regulators? I can go on and on. </div><div class="gmail_default" style="font-family:georgia,serif"><br></div><div class="gmail_default" style="font-family:georgia,serif">2. I can't help but wonder whether the current regulatory environment is fit for purpose and whether the Telcos themselves are stuck in the '80s and the regulator with them? Isn't it time to take into consideration that the cheese is moving or has moved and that VOIP-type services have eaten into the traditional voice market and these guys continue to fight for what's remaining of the market? Has a study been done on what percentage of the voice market is going to VOIP? </div><div class="gmail_default" style="font-family:georgia,serif"><br></div><div class="gmail_default" style="font-family:georgia,serif">3. Are we fighting the wrong war? </div><div class="gmail_default" style="font-family:georgia,serif"><br></div><div class="gmail_default" style="font-family:georgia,serif">4. Last but not least how do we as a country reason out without going to court? </div><div class="gmail_default" style="font-family:georgia,serif"><br></div><div class="gmail_default" style="font-family:georgia,serif">My two cowrie shells.</div><div class="gmail_default" style="font-family:georgia,serif"><br></div><div class="gmail_default" style="font-family:georgia,serif">Regards</div><div class="gmail_default" style="font-family:georgia,serif"><br></div><div><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 dir="ltr"><p style="margin:0in 0in 0pt"><b><font face="georgia, serif" size="2">Ali
Hussein</font></b></p><p style="margin:0in 0in 0pt"><font face="georgia, serif" size="2"><span>Fintech | </span>Digital Transformation</font></p><p style="margin:0in 0in 0pt"><br></p><p style="margin:0in 0in 0pt"><font size="2"><span style="font-family:georgia,serif"><span>T<font size="2">el: +254 713 60<font size="2">1113</font></font><br></span></span></font></p><p style="margin:0in 0in 0pt"><font size="2"><span style="font-family:georgia,serif"><span>Twitter: @AliHKassim</span><span></span></span></font></p><font size="2"><span style="font-family:georgia,serif">
</span></font><p style="margin:0in 0in 0pt"><font size="2"><span style="font-family:georgia,serif"><span>Skype: abu-jomo</span></span></font></p><p style="margin:0in 0in 0pt"><font size="2"><span style="font-family:georgia,serif"><span>LinkedIn: <a href="http://ke.linkedin.com/in/alihkassim" target="_blank">http://ke.linkedin.com/in/alihkassim</a></span><a href="http://ke.linkedin.com/in/alihkassim" target="_blank"><span style="color:windowtext;text-decoration:none"></span></a></span></font></p><p style="margin:0in 0in 0pt"><font size="2"><span style="font-family:georgia,serif"><br></span></font></p><p style="font-size:small;margin:0cm 0cm 0.0001pt;background-image:initial;background-position:initial;background-repeat:initial"><span style="font-size:9pt;font-family:georgia;color:black"><br></span></p><font size="2"><span style="font-family:georgia,serif"><span><br><font size="1">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.</font></span></span></font><span style="font-family:"Baskerville Old Face",serif;font-size:11pt"></span><span style="font-size:11pt"></span>
<span style="font-family:"Baskerville Old Face",serif"></span></div></div></div></div></div></div></div></div></div></div></div></div><br></div><br><div class="gmail_quote"><div dir="ltr" class="gmail_attr">On Mon, Jan 24, 2022 at 9:20 PM Mwendwa Kivuva via KICTANet <<a href="mailto:kictanet@lists.kictanet.or.ke" target="_blank">kictanet@lists.kictanet.or.ke</a>> wrote:<br></div><blockquote class="gmail_quote" style="margin:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padding-left:1ex"><div dir="auto">Safaricom has a huge pricing power in voice services, making it difficult for rivals Airtel Kenya and Telkom Kenya to compete with it, the Communications Authority of Kenya (CA) has said.<div dir="auto"><br></div><div dir="auto">The regulator made the disclosure in its response to a case filed by Safaricom at the Communications And Multimedia Appeals Tribunal seeking to stop CA from cutting the mobile termination rate (MTR) per minute to Sh0.12 from Sh0.99.</div><div dir="auto"><br></div><div dir="auto">MTRs are the charges levied by a mobile service provider on other telecommunications service providers for terminating calls on its network.</div><div dir="auto"><br></div><div dir="auto">Safaricom argues that the reduction of the charge, which was to take effect at the start of this year, ignores the cost of doing business in the telecommunications industry.</div><div dir="auto"><br></div><div dir="auto">The regulator responded by stating that the leading telco has the lowest cost of operations, allowing it to run promotions at prices below the MTR and which its rivals are not in a position to match.</div><div dir="auto"><br></div><div dir="auto">Safaricom’s leading market share has seen it charge its rivals more than it pays out to them, leaving it in a net profitable position.</div><div dir="auto"><br></div><div dir="auto">More ... <a href="https://www.businessdailyafrica.com/bd/corporate/companies/safaricom-pricing-power-revealed-in-tariff-battle-3691550" target="_blank">https://www.businessdailyafrica.com/bd/corporate/companies/safaricom-pricing-power-revealed-in-tariff-battle-3691550</a></div></div>
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