I think there are several interesting points here: - Yes, a regulator should keep an eye on monopolistic and oligopolistic developments. But, as Michael Joseph said, dominance should only be penalised if abused, and in order to do so, this abuse needs to be defined in the regulations - which has not been done, he says, despite repeat reassurances given to him by both the Ministry of Information and the CCK (see http://www.ratio-magazine.com/201005052971/Kenya/Kenya-Safaricom-Willing-to-... ) - Celtel/Zain clearly didn't start out to be a 'feeble player', nor were they a late entrant, as the figures I cited show. So is it fair to penalise Safaricom for Celtel's inability to retain market share and capitalise on having been in the market for more than a decade? - Orange: France Telecom bid around USD100m more for Telkom Kenya than their nearest competitor in the privatisation. Was that price justified? Nobody else seems to think so, not even France Telecom anymore, since they are now reportedly trying to get some or all of that money back. - Yu: Econet couldn't get going for ages because their local partner could raise their financial contribution. Was that a sensibly chosen local partner? Obviously it's not ideal for the market and customers to have such limited competition, but then a) the regulation lacks a crucial element, and b) the competition seem to have been quite adept at shooting themselves in the foot. Is it fair to punish Safaricom for that? Andrea On 7 May 2010 18:04, Pius Walela <[email protected]> wrote:
Recent developments in the mobile telephony sector are of concern . I opine that for a true capitalist society to manifest the market should be subject to forces of demand and supply to create conducive conditions for the market to thrive and in extension to ensure its longevity. However Oligopolistic and monopolistic tendencies in the market ought to be constrained to cushion feeble players and potential new entrants from eventual or outright failure, as such regulation is essential however these regulations have to be moderated.
*From:* [email protected][mailto: kictanet-bounces+pwalela <kictanet-bounces%2Bpwalela>=strathmore.edu@ lists.kictanet.or.ke] *On Behalf Of *Andrea Bohnstedt *Sent:* Friday, May 07, 2010 5:57 PM *To:* Pius Walela *Cc:* KICTAnet ICT Policy Discussions *Subject:* {Disarmed} Re: [kictanet] Call for opinions - CCK vs Safaricom
Amusing little factoid:
In 2004, when Celtel acquired Kencell: 'Kencell, with about 1.2 million subscribers, has recently lost market share to rival Safaricom, a joint venture of Kenya's state-owned Telkom Kenya and Britain's Vodafone. Safaricom's subscribers have grown to 1.8 million, increasing its share to 60% from about 50%.
So Celtel/Zain managed to work their way down from 50% to 14% or so over the past six years. Must have been quite a slippery playing field.
(http://www.regulateonline.org/2003/intelecon/2004/May/A-Kenya-040525.htm)
On 7 May 2010 17:38, Walubengo J <[email protected]> wrote:
MM,
this Kwame guy is an interesting read!. One amusing message I picked says that the regulator should be protecting consumers - not competitors ;-)
..and from the "streets" some analyst said that Safcom may have exploited its dominance position; but that was in the beginning (ref: interconnection tariff wars with Kencell 6-8yrs ago). Currently, it will be a tall order to get evidence of the yet to be defined "exploiting" dominance postion"
walu.
--- On *Fri, 5/7/10, muriuki mureithi <[email protected]>*wrote:
From: muriuki mureithi <[email protected]> Subject: Re: [kictanet] [ke-internetusers] {HIJACK} Call for opinions - CCK vs Safaricom To: [email protected] Cc: "'KICTAnet ICT Policy Discussions'" <[email protected]>, "'ke-users'" <[email protected]> Date: Friday, May 7, 2010, 3:32 PM
Kui
For a local context from an economic perspective , read the attached
Regards
Muriuki Mureithi
*From:* kictanet-bounces+mureithi=summitstrategies.co.ke@ lists.kictanet.or.ke [mailto:kictanet-bounces+mureithi<kictanet-bounces%2Bmureithi> [email protected]] *On Behalf Of *John Kariuki *Sent:* 07 May 2010 08:09 *To:* [email protected] *Cc:* KICTAnet ICT Policy Discussions; ke-users *Subject:* Re: [kictanet] [ke-internetusers] {HIJACK} Call for opinions - CCK vs Safaricom
Kui,
For some background information on Competition, Dominance,etc you could check on the following information resources which should be available on-line:
1.Oftel, January 2000- The application of the Competition Act in Telecommunications Sector.
2. INTUG - Anti-Competitive Conduct and Competition Policy in Telecommunications,ITU,Geneva 22 Nov.2002
3.EU Directive 2002/19/EC 0f 7/3/2002 (Access Directive)
4. European Court of Justice in " United Brands v. Commission(1978) ECR. 207
5.Telecommunication Regulation Handbook(Module 5 - Competition Policy) by INFODEV,
Good Luck,
John Kariuki
--- On *Thu, 6/5/10, Marie-Anne Kinyanjui <[email protected]>*wrote:
From: Marie-Anne Kinyanjui <[email protected]> Subject: [ke-internetusers] {HIJACK} Call for opinions - CCK vs Safaricom To: "McTim" <[email protected]> Cc: "KICTAnet ICT Policy Discussions" <[email protected]>, "ke-users" <[email protected]> Date: Thursday, 6 May, 2010, 8:47
Is there anyone on the list with a firm grasp of the industry (and who is not directly involved :-) who is wiling to offer their objective views on this subject for publication in Business Daily? 400-600 words please.
Thanks.
Kui Kinyanjui Business Daily
-----Original Message----- From: [email protected][mailto: kictanet-bounces+mkinyanjui <kictanet-bounces%2Bmkinyanjui>=nation.co.ke@ lists.kictanet.or.ke] On Behalf Of McTim Sent: Thursday, May 06, 2010 8:15 AM To: Marie-Anne Kinyanjui Cc: KICTAnet ICT Policy Discussions; ke-users; Angela Nganga- Mumo Subject: Re: [kictanet] [ke-internetusers] Re: {Disarmed} Re: CCK vs Safaricom?- and now Safcom vs the Rest?
On Thu, May 6, 2010 at 7:35 AM, Solomon Mburu Kamau <[email protected]> wrote:
This is great Angela. I really need to know why the 'big boy' is suddenly crying foul.
Let's re-examine our assumptions of who the "Big Boy" in the Kenyan Telecommunications market is.
The GoK owns a huge minority shareholding in Telkom.Orange (and may in future own a majority share). When Orange makes a profit, so do its owners.
The GoK owns a huge minority shareholding in Safaricom. When SafCom makes a profit, so do its owners.
The GoK collects a tremendous amount of VAT and other taxes from the telecoms market players.
The GoK collects a tremendous amount of license fees and frequencies fees from the telecoms market players.
The GoK sets policy via the CCK and the Ministry.
So from my POV, the GoK is the BIG BOY, it seems to me that this is the "elephant in the room" that no one is talking about.
In any case on this specific regulation, I applaud the intent of creating a level playing field. However, I see no monetary "teeth" or enforcement measures (read fines) in this single doc (I have yet to read the others).
My main objection is the 25% rule. My reading of this is that there MUST always be at least one dominant provider. Let me use a poker game analogy to make my point. Before the first hand is dealt, all players will have an equal amount of chips. After the first hand (and subsequent hands) there will (most likely) be a "chip leader" and a "short stack". It is not likely that there will ever be equilibrium in the game (or in the telecoms market).
I would suggest that this clause is not helpful, at least at the 25% value at which the trigger is now set.
No wonder Safaricom is complaining.
-- Cheers,
McTim "A name indicates what we seek. An address indicates where it is. A route indicates how we get there." Jon Postel
On 06/05/2010, Carole K <[email protected]> wrote:
Thank you Angela, you are a star! The rest of us can now be informed
about
this new "unfair" regulation.
CK
On Wed, May 5, 2010 at 7:51 PM, Angela Nganga- Mumo < [email protected]> wrote:
Dear All,
Please find a PDF copy of the regulations.
Regards,
logo2
Angela Ng'ang'a - Mumo
Head of Corporate Communications
Landline: + 254 20 3232011
Orange Fixed Plus : +254 20 2454233
Orange Mobile: +254 772 548 066
Email : [email protected]
-----Original Message----- From: [email protected] [mailto:[email protected]] On Behalf Of [email protected] Sent: Wednesday, May 05, 2010 7:41 PM To: Andrea Bohnstedt Cc: KICTAnet ICT Policy Discussions; ke-users Subject: [ke-internetusers] Re: {Disarmed} Re: [kictanet] CCK vs Safaricom?- and now Safcom vs the Rest?
Will send it tomorrow.
Ndemo.
I'd like to see the text, too. Dr Ndemo, could you or one of your colleagues email round a pdf with the regulations, please? Easier and a bit nicer on the environment than all of us running downtown to buy paper copies.
Thanks, Andrea
On 4 May 2010 09:32, Walubengo J <[email protected]> wrote:
the drama continues,
in a louder paid-up advert in today's press Yu, Orange and Zain support the CCK regulations and dispute yesterday's Safcom's complaint. All these without the public (or is it me?) not having copies of what they are arguing about!
Someone told me the copies of this regulations are available at the Government Printers at a small fee. Halloo? Assuming I leave in Lokichoggio, Should i spend two days on the road to come and pickup some hard-copy regulations that should be downloadable?
Sergon, can you help me, where does this leave you with your eGovernment stories?
walu.
--- On *Mon, 5/3/10, Walubengo J <[email protected]>* wrote:
From: Walubengo J <[email protected]> Subject: Re: [kictanet] CCK vs Safaricom? To: [email protected] Cc: "KICTAnet ICT Policy Discussions" < [email protected]> Date: Monday, May 3, 2010, 10:55 AM
Just seen a loud complaint from Safcom in today's Daily Nation. They quoted four regulations that have been gazetted and I have searched www.cck.go.ke to get a mouse on them but failed.
Anybody with e-copies on these regulations or specific url can plse update.
walu.
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-- Solomon Mbũrũ Kamau P.O. Box 19343 - 00202 Nairobi Cell: (+254-0) 735 431041
Man is a gregarious animal and enjoys agreement as cows will graze all the same way to the side of a hill!
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