On Tue, 25 Jan 2022 at 08:09, Ali Hussein <ali@hussein.me.ke> wrote:
Kivuva and listers
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:-
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.
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?
It is in the current numbers. Safaricom earns an estimated Sh6.5 billion annually from MTR while paying out Sh2.6 billion to rivals, leaving it in a profitable position while competitors remain in a net loss. The business will eventually move through evolution. As for now, it seems we the clients still love voice calls.
3. Are we fighting the wrong war?
4. Last but not least how do we as a country reason out without going to court?
Its the Communications And Multimedia Appeals Tribuna.
My two cowrie shells.
Regards
*Ali Hussein*
Fintech | Digital Transformation
Tel: +254 713 601113
Twitter: @AliHKassim
Skype: abu-jomo
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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.
On Mon, Jan 24, 2022 at 9:20 PM Mwendwa Kivuva via KICTANet < kictanet@lists.kictanet.or.ke> wrote:
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.
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.
MTRs are the charges levied by a mobile service provider on other telecommunications service providers for terminating calls on its network.
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.
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.
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.
More ... https://www.businessdailyafrica.com/bd/corporate/companies/safaricom-pricing... _______________________________________________ KICTANet mailing list KICTANet@lists.kictanet.or.ke https://lists.kictanet.or.ke/mailman/listinfo/kictanet Twitter: http://twitter.com/kictanet Facebook: https://www.facebook.com/KICTANet/
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