I think we had this conversation before - infact several times. We have to grudgingly agree with Mwangi's comments below. For me Safcom is a monopoly - though the laywers who get paid for splitting hairs prefer to call it a "dominant" player. Economists know the characteristics of a monopoly/dominant player and so this action suprises only those not in that discipline (like most of us :-). But I have come to understand what Safaricom does and unfortunately, I would do the same in a free market environment where profits and market share as demanded by the Shareholders is the main focus as a CEO. Whatever you do to grow your profits and protect your market is often a good thing in a market that has "equal" players. In a market that has "unequal" players the social benefits of a free market economy often fail to materialize - even as those of the private investor increases. On a related note, I just read the President's tweet saying that from next year April 2014, ALL government services will be paid through cash-less means (I would read that as MPESA :-). This is a very good thing, but what redundancies do have as nation. What happens in the unlikely event that Vodafone (the UK owners of MPESA) chose to close down or refuse to operate in .KE due to some (un?)forseen circumstances like western-country engineered sanctions? The best redundancy would have been a working competitor - not a limping one like (what was the name of MPESA's competitor again? :-) We must cautiously celebrate the success of Safaricom, but seek ways to address the elephant in the room:-market failure. walu. -------------------------------------------- On Fri, 11/8/13, Mark Mwangi <mwangy@gmail.com> wrote: Subject: Re: [kictanet] Safaricom shuts down cash for Bonga Points platform To: jwalu@yahoo.com Cc: "KICTAnet ICT Policy Discussions" <kictanet@lists.kictanet.or.ke> Date: Friday, November 8, 2013, 9:15 AM Bonga points are a loyalty system that are meant to work purely within the Safaricom Ecosystem. The system is thus under the terms and conditions of Safaricom and it can be manipulated and even shutdown anytime if they so wish. Safaricom has no obligation to help anyone make money off its system It may be immoral but not illegal. On Thu, Nov 7, 2013 at 9:56 PM, Ali Hussein <ali@hussein.me.ke> wrote: Kamotho Can one argue that Bonga Points is a currently created by Safaricom and hence they have a right to sort of regulate its usage? Ali Hussein +254 0770 906375 / 0713 601113 "Kujikwaa si kuanguka, bali ni kwenda mbele" (To stumble is not to fall but a sign of going forward) - Swahili Proverb Sent from my iPad On Nov 7, 2013, at 7:43 PM, Kamotho Njenga <kamothonjenga@gmail.com> wrote: Thanks Hussein for bringing up this matter. It seems Safcom is so engrossed in protectionism to an extent that the firm has little respect for individual liberties, flexibility of choices or the law of the land. Needless to say, once a firm has made an undertaking to customers to award Bonga points when they spend their airtime on its network, the firm becomes duty bound to fulfill that obligation in its entire measure. As soon as the Bonga points have accrued to a subscriber, they immediately cease to be mere sales talk or a discretionary bonus which the firm can choose to honor or not. They immediately mutate into a perfect entitlement that is legally recognizable. No reasonable firm would therefore limit how a loyal subscriber chooses to activate such an entitlement. The only acceptable limitations are those that may naturally arise due to lack of technological capacity that would widen the range of options through which customers could gain full benefit of their hard earned bonga points. Instead of celebrating and embracing the landmark application by Onfon Media and its associated flexibilities, Safcom shut it down. By so doing Safcom lost an opportunity to further the scope of options within their loyalty program. Most significantly, the firm flouted the trade law and its conventional tenets. According to Section 21 of the Competition Act (2010) "Agreements between undertakings, decisions by undertakings or concerted practices by undertakings which have as their object or effect the prevention, distortion or lessening of competition in trade in any goods or services in Kenya, or a part of Kenya, are prohibited". Section 24 of the Act reads as follows: 24. Abuse of dominant position (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. (2) Without prejudice to the generality of subsection (1), abuse of a dominant position includes― (a) directly or indirectly imposing unfair purchase or selling prices or other unfair trading conditions; (b) limiting or restricting production, market outlets or market access, investment, distribution, technical development or technological progress through predatory or other practices; (c) applying dissimilar conditions to equivalent transactions with other trading parties; (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 (e) abuse of an intellectual property right. (3) Any person who contravenes the provisions of this section commits an offense and shall be liable on conviction to imprisonment for a term not exceeding five years or to a fine not exceeding ten million shillings or to both. This action of disabling the phone code that was being used to trade in Bonga Points by Onfone media by Safcom borders on intrusion into private transactions between consenting parties. Unless Safcom can show evidence that the inter-party dealings with Bonga points have exposed the firm to any fraud or justifiable risk, they owe an apology to the ICT fraternity and the entire world for attempting to stifle innovation. Kamotho On Thu, Nov 7, 2013 at 9:58 AM, Ali Hussein <ali@hussein.me.ke> wrote: Safaricom has disabled a phone code that was being used to trade in Bonga Points by a Nairobi-based IT firm. Onfon Media developed the code, *981*400#, that it was using to buy the loyalty points from Safaricom subscribers at Sh0.20 each and selling them for Sh0.35, hence earning a return of 75 per cent. Read on http://www.businessdailyafrica.com/Corporate-News/-/539550/2055474/-/xk1n6az... There should be a healthy debate on whether doing this is the right thing to do by Safaricom and whether it is anti-innovation... I for one wouldn't mind some cash event for my thousands of bonga points...:) Ali Hussein +254 0770 906375 / 0713 601113 "Kujikwaa si kuanguka, bali ni kwenda mbele" (To stumble is not to fall but a sign of going forward) - Swahili Proverb Sent from my iPad _______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke https://lists.kictanet.or.ke/mailman/listinfo/kictanet Unsubscribe or change your options at https://lists.kictanet.or.ke/mailman/options/kictanet/kamothonjenga%40gmail.... 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. 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. _______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke https://lists.kictanet.or.ke/mailman/listinfo/kictanet Unsubscribe or change your options at https://lists.kictanet.or.ke/mailman/options/kictanet/mwangy%40gmail.com 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. 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. -- Regards, Mark Mwangi markmwangi.me.ke -----Inline Attachment Follows----- _______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke https://lists.kictanet.or.ke/mailman/listinfo/kictanet Unsubscribe or change your options at https://lists.kictanet.or.ke/mailman/options/kictanet/jwalu%40yahoo.com 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. 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.