Safaricom’s ultimatum before Airtel-Telkom merger
https://www.standardmedia.co.ke/business/article/2001340740/safaricom-s-ulti... Safaricom has set an ultimatum for the Telkom-Kenya and Airtel merger while downplaying claims that it is opposed to the deal, which is expected before the end of the year. On Tuesday, Telkom-Kenya Managing Director Mugo Kibati cried foul over Safaricom’s opposition to the deal, which he says, will spur innovation in the sector and put Kenya in the map as a tech giant in the region. Safaricom says it does not oppose the move but wants the two operators to settle a debt of Sh1.2 billion and the issue of frequency allocation to be rebalanced. “While we are supportive of industry changes that seek to deliver greater choice and value to consumers, we have raised valid concerns that we hope the regulator will consider and address as part of the approval process,” says Safaricom CEO Michael Joseph. “The first is the debt owed by the two operators, amounting to Sh1,297,448,468.88, incurred for the provision of various services including interconnection, co-location and fibre services. This debt is due and payable, based on the agreement to provide services entered into with the two entities as distinct operators. Our expectation is that the payment obligations should be settled in full before the transfer of business is effected.” Safaricom also wants a rebalance to the frequencies allocation. It says that the post-merger, Airtel-Telkom will jointly hold 77.5 MHz of the spectrum against a customer base of 17.3 million, compared to Safaricom’s 57.5 MHz with almost double the customer base at 31.8 million. “Given the size of Safaricom’s customer base in comparison to the current spectrum holdings, it is apparent that the transaction will create a disproportionate imbalance in the spectrum allocation, which will be inconsistent with the market share,” says Joseph. The interim CEO also wants equal treatment of operators and creation of a level playing field within the industry, specifically in relation to licensing and operations requirements. “Having articulated our concerns, we await direction from the regulator on the way forward, especially in regard to the debt payment and rebalancing of frequencies allocation.” “We also look forward to working alongside other industry players to continue delivering high quality, innovative services to Kenyans.”
Very interesting. Shoe on the other foot kind of thing? :-) Not sure this is an 'ultimatum'. You just have to love how the media loves to garnish stories. I must, however, say that what the Safaricom CEO (notice I have not added 'interim' because I believe MJ is going nowhere for a while and he has hinted as such himself) is asking for makes sense. On the spectrum issue. However, I believe spectrum should not be dished out on account of market share alone. Other considerations should include:- 1. Public Good. 2. Serving marginalized areas. 3. Allocation to potential disruptive startups in the industry. This should be interesting to follow. Regards *Ali Hussein* *Principal* *AHK & Associates* Tel: +254 713 601113 Twitter: @AliHKassim Skype: abu-jomo LinkedIn: http://ke.linkedin.com/in/alihkassim <http://ke.linkedin.com/in/alihkassim> 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 Wed, Sep 4, 2019 at 6:49 PM Mwendwa Kivuva via kictanet < kictanet@lists.kictanet.or.ke> wrote:
https://www.standardmedia.co.ke/business/article/2001340740/safaricom-s-ulti...
Safaricom has set an ultimatum for the Telkom-Kenya and Airtel merger while downplaying claims that it is opposed to the deal, which is expected before the end of the year.
On Tuesday, Telkom-Kenya Managing Director Mugo Kibati cried foul over Safaricom’s opposition to the deal, which he says, will spur innovation in the sector and put Kenya in the map as a tech giant in the region.
Safaricom says it does not oppose the move but wants the two operators to settle a debt of Sh1.2 billion and the issue of frequency allocation to be rebalanced.
“While we are supportive of industry changes that seek to deliver greater choice and value to consumers, we have raised valid concerns that we hope the regulator will consider and address as part of the approval process,” says Safaricom CEO Michael Joseph.
“The first is the debt owed by the two operators, amounting to Sh1,297,448,468.88, incurred for the provision of various services including interconnection, co-location and fibre services. This debt is due and payable, based on the agreement to provide services entered into with the two entities as distinct operators. Our expectation is that the payment obligations should be settled in full before the transfer of business is effected.”
Safaricom also wants a rebalance to the frequencies allocation.
It says that the post-merger, Airtel-Telkom will jointly hold 77.5 MHz of the spectrum against a customer base of 17.3 million, compared to Safaricom’s 57.5 MHz with almost double the customer base at 31.8 million.
“Given the size of Safaricom’s customer base in comparison to the current spectrum holdings, it is apparent that the transaction will create a disproportionate imbalance in the spectrum allocation, which will be inconsistent with the market share,” says Joseph.
The interim CEO also wants equal treatment of operators and creation of a level playing field within the industry, specifically in relation to licensing and operations requirements.
“Having articulated our concerns, we await direction from the regulator on the way forward, especially in regard to the debt payment and rebalancing of frequencies allocation.”
“We also look forward to working alongside other industry players to continue delivering high quality, innovative services to Kenyans.” _______________________________________________ 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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"It says that the post-merger, Airtel-Telkom will jointly hold 77.5 MHz of the spectrum against a customer base of 17.3 million, compared to Safaricom’s 57.5 MHz with almost double the customer base at 31.8 million." Because they hold that even at the moment, how does their combined ownership of 77.5MHz affect Safaricom?? :-) On Thu, 5 Sep 2019 at 06:00, Ali Hussein via kictanet < kictanet@lists.kictanet.or.ke> wrote:
Very interesting.
Shoe on the other foot kind of thing? :-)
Not sure this is an 'ultimatum'. You just have to love how the media loves to garnish stories. I must, however, say that what the Safaricom CEO (notice I have not added 'interim' because I believe MJ is going nowhere for a while and he has hinted as such himself) is asking for makes sense. On the spectrum issue. However, I believe spectrum should not be dished out on account of market share alone. Other considerations should include:-
1. Public Good. 2. Serving marginalized areas. 3. Allocation to potential disruptive startups in the industry.
This should be interesting to follow.
Regards
*Ali Hussein*
*Principal*
*AHK & Associates*
Tel: +254 713 601113
Twitter: @AliHKassim
Skype: abu-jomo
LinkedIn: http://ke.linkedin.com/in/alihkassim <http://ke.linkedin.com/in/alihkassim>
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 Wed, Sep 4, 2019 at 6:49 PM Mwendwa Kivuva via kictanet < kictanet@lists.kictanet.or.ke> wrote:
https://www.standardmedia.co.ke/business/article/2001340740/safaricom-s-ulti...
Safaricom has set an ultimatum for the Telkom-Kenya and Airtel merger while downplaying claims that it is opposed to the deal, which is expected before the end of the year.
On Tuesday, Telkom-Kenya Managing Director Mugo Kibati cried foul over Safaricom’s opposition to the deal, which he says, will spur innovation in the sector and put Kenya in the map as a tech giant in the region.
Safaricom says it does not oppose the move but wants the two operators to settle a debt of Sh1.2 billion and the issue of frequency allocation to be rebalanced.
“While we are supportive of industry changes that seek to deliver greater choice and value to consumers, we have raised valid concerns that we hope the regulator will consider and address as part of the approval process,” says Safaricom CEO Michael Joseph.
“The first is the debt owed by the two operators, amounting to Sh1,297,448,468.88, incurred for the provision of various services including interconnection, co-location and fibre services. This debt is due and payable, based on the agreement to provide services entered into with the two entities as distinct operators. Our expectation is that the payment obligations should be settled in full before the transfer of business is effected.”
Safaricom also wants a rebalance to the frequencies allocation.
It says that the post-merger, Airtel-Telkom will jointly hold 77.5 MHz of the spectrum against a customer base of 17.3 million, compared to Safaricom’s 57.5 MHz with almost double the customer base at 31.8 million.
“Given the size of Safaricom’s customer base in comparison to the current spectrum holdings, it is apparent that the transaction will create a disproportionate imbalance in the spectrum allocation, which will be inconsistent with the market share,” says Joseph.
The interim CEO also wants equal treatment of operators and creation of a level playing field within the industry, specifically in relation to licensing and operations requirements.
“Having articulated our concerns, we await direction from the regulator on the way forward, especially in regard to the debt payment and rebalancing of frequencies allocation.”
“We also look forward to working alongside other industry players to continue delivering high quality, innovative services to Kenyans.” _______________________________________________ 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/
Unsubscribe or change your options at https://lists.kictanet.or.ke/mailman/options/kictanet/info%40alyhussein.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.
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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.
-- Best regards, Odhiambo WASHINGTON, Nairobi,KE +254 7 3200 0004/+254 7 2274 3223 "Oh, the cruft.", grep ^[^#] :-)
Ali, Indeed Spectrum is the next Real Estate. MJ raised valid concerns though. As the Service Providers fight for a greater share of Specturm, let us remain Vigilant on Quality of Service. I am sure the Regulator is on our side. Best regards Barrack Otieno On Thursday, 05-09-2019 at 05:52 Ali Hussein via kictanet wrote: Very interesting. Shoe on the other foot kind of thing? :-) Not sure this is an 'ultimatum'. You just have to love how the media loves to garnish stories. I must, however, say that what the Safaricom CEO (notice I have not added 'interim' because I believe MJ is going nowhere for a while and he has hinted as such himself) is asking for makes sense. On the spectrum issue. However, I believe spectrum should not be dished out on account of market share alone. Other considerations should include:- 1. Public Good. 2. Serving marginalized areas. 3. Allocation to potential disruptive startups in the industry. This should be interesting to follow. Regards Ali Hussein Principal AHK & Associates Tel: +254 713 601113 Twitter: @AliHKassim Skype: abu-jomo LinkedIn: http://ke.linkedin.com/in/alihkassim [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. On Wed, Sep 4, 2019 at 6:49 PM Mwendwa Kivuva via kictanet wrote: https://www.standardmedia.co.ke/business/article/2001340740/safaricom-s-ulti... Safaricom has set an ultimatum for the Telkom-Kenya and Airtel merger while downplaying claims that it is opposed to the deal, which is expected before the end of the year. On Tuesday, Telkom-Kenya Managing Director Mugo Kibati cried foul over Safaricom’s opposition to the deal, which he says, will spur innovation in the sector and put Kenya in the map as a tech giant in the region. Safaricom says it does not oppose the move but wants the two operators to settle a debt of Sh1.2 billion and the issue of frequency allocation to be rebalanced. “While we are supportive of industry changes that seek to deliver greater choice and value to consumers, we have raised valid concerns that we hope the regulator will consider and address as part of the approval process,” says Safaricom CEO Michael Joseph. “The first is the debt owed by the two operators, amounting to Sh1,297,448,468.88, incurred for the provision of various services including interconnection, co-location and fibre services. This debt is due and payable, based on the agreement to provide services entered into with the two entities as distinct operators. Our expectation is that the payment obligations should be settled in full before the transfer of business is effected.” Safaricom also wants a rebalance to the frequencies allocation. It says that the post-merger, Airtel-Telkom will jointly hold 77.5 MHz of the spectrum against a customer base of 17.3 million, compared to Safaricom’s 57.5 MHz with almost double the customer base at 31.8 million. “Given the size of Safaricom’s customer base in comparison to the current spectrum holdings, it is apparent that the transaction will create a disproportionate imbalance in the spectrum allocation, which will be inconsistent with the market share,” says Joseph. The interim CEO also wants equal treatment of operators and creation of a level playing field within the industry, specifically in relation to licensing and operations requirements. “Having articulated our concerns, we await direction from the regulator on the way forward, especially in regard to the debt payment and rebalancing of frequencies allocation.” “We also look forward to working alongside other industry players to continue delivering high quality, innovative services to Kenyans.” _______________________________________________ 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/ Unsubscribe or change your options at https://lists.kictanet.or.ke/mailman/options/kictanet/info%40alyhussein.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. Links: ------ [1] http://ke.linkedin.com/in/alihkassim
participants (4)
-
Ali Hussein -
Barrack Otieno -
Mwendwa Kivuva -
Odhiambo Washington