CCK to renew Safaricom's licence
Listers, CCK to renew Safaricom's licence Kenya's largest mobile operator - Safaricom - will pay Kshs2.36billion (US$27million) for renewal of its operating licence for a further term of 10 years. CCK today announced that the renewal of Safaricom's licence would depend on the operator paying the renewal fee upfront and meeting the set minimum quality of service standards by June 2014. Safaricom's initial licence term of 15 years is set to expire on 30th June 2014 but has a provision for a possible renewal for a further term of 10 years. Addressing the media at the CCK offices, CCK Director General Mr. Francis Wangusi said the renewed Safaricom licence would come with a set of new licence terms and conditions negotiated between the regulator and the mobile operator. The licence renewal fee of US$27 million is based on the bid price offered for the third GSM mobile licence by the latest entrant to the mobile telecoms market in Kenya -Econet Wireless Kenya Ltd (now Essar Telecom Kenya Ltd). The Director General said that whereas Safaricom has significantly contributed to the economy, developed innovative products and services and met most its licence obligations, the mobile operator needs to up its game in regard to meeting the set quality of service standards. ''We have considered the fact that whereas Safaricom has met most of its licence obligations, its continued failure to meet the set Quality of Service standards remains a concern that needs to be addressed,'' said Mr. Wangusi. Mr. Wangusi further said the three other mobile operators would pay the same amount for renewal of their licences for a further term of 10 year to ensure parity and a level playing ground for all service providers in the sector. At the sametime, the Director General said the spectrum assigned to the four mobile operators will be subjected to an auction after the expiry of the 10-year renewal term. , The full statement of the Director General is available on the CCK website at http://www.cck.go.ke/news/speeches/2013/Press_statement__Safaricom_licence.p... Wambua
Wambua Thanks for sharing. That's quite abit of change there! :) may I ask a few questions? 1. How does the exchequer spend this money? Is this plowed back into the sector or does it go into the big kitty and used up among the other monies in the treasury? 2. When are the other telcos licenses coming up for renewal? I'm asking this as I feel its pertinent and linked to the continued vibrancy and competitiveness in the sector. I'm very curious whether the other Telcos - Orange, Yu and Airtel have the local balance sheets to afford this new fee unless their mother companies bail them out. The case of Orange is obvious. They are already asking Telcom France and the Kenyan Government to pump in several billion shillings in a rescue package. So my question is this:- When these licenses come up for renewal and these companies fail to pay up what's the plan? Will we yank their licenses? 3. Lastly Wambua, I have asked this question severally. Where are we at on the issue of the Universal Access Fund? Based on the presentation by Madame Susan Mochache-Wekesa it is very obvious that the country requires to double up on the rollout of the NOFBI to ensure universal broadband access. We know that the members are now in place and its been several months. Can we have a status report on the activities so far and their 5 year Strategic Plan? Thanks Ali Hussein CEO | 3mice interactive media Ltd Principal | Telemedia Africa Ltd +254 713 601113/ 0770 906375 "The future belongs to him who knows how to wait." - Russian Proverb Sent from my iPad On Jul 26, 2013, at 4:47 PM, "Wambua, Christopher" <Wambua@cck.go.ke> wrote:
Listers,
CCK to renew Safaricom’s licence
Kenya’s largest mobile operator – Safaricom – will pay Kshs2.36billion (US$27million) for renewal of its operating licence for a further term of 10 years.
CCK today announced that the renewal of Safaricom’s licence would depend on the operator paying the renewal fee upfront and meeting the set minimum quality of service standards by June 2014. Safaricom’s initial licence term of 15 years is set to expire on 30th June 2014 but has a provision for a possible renewal for a further term of 10 years.
Addressing the media at the CCK offices, CCK Director General Mr. Francis Wangusi said the renewed Safaricom licence would come with a set of new licence terms and conditions negotiated between the regulator and the mobile operator.
The licence renewal fee of US$27 million is based on the bid price offered for the third GSM mobile licence by the latest entrant to the mobile telecoms market in Kenya -Econet Wireless Kenya Ltd (now Essar Telecom Kenya Ltd).
The Director General said that whereas Safaricom has significantly contributed to the economy, developed innovative products and services and met most its licence obligations, the mobile operator needs to up its game in regard to meeting the set quality of service standards.
‘‘We have considered the fact that whereas Safaricom has met most of its licence obligations, its continued failure to meet the set Quality of Service standards remains a concern that needs to be addressed,’’ said Mr. Wangusi.
Mr. Wangusi further said the three other mobile operators would pay the same amount for renewal of their licences for a further term of 10 year to ensure parity and a level playing ground for all service providers in the sector.
At the sametime, the Director General said the spectrum assigned to the four mobile operators will be subjected to an auction after the expiry of the 10-year renewal term. , The full statement of the Director General is available on the CCK website at http://www.cck.go.ke/news/speeches/2013/Press_statement__Safaricom_licence.p...
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Thank you Mr. Wambua for the information. Great questions Ali. Me think a part pf those funds should go to USF. What I am worried about is, if Safaricom controls more than 60% market share, why make the other telkos pay the same license renewal fee as Safaricom? With US$27 million as license renewal fee, what does that say about the consumer? What strategy does Safaricom have to recover their capital injection? Will we see lowered interconnection rates, and lower data and voice rates in the near future? Regards -- ______________________ Mwendwa Kivuva twitter.com/lordmwesh kenya.or.ke | The Kenya we know
Dear Wambua, Thanks for bringing this issue to our attention. Actually, 2 weeks ago an email I had composed for the list got deleted before I could deliver it...then I got swamped! The email was about the "poor quality of service" from Safaricom - too many dropped calls, uncompleted calls, undelivered sms", hanging sms" etc. and asking the BIG QUESTION: "WHAT IS CCK DOING ABOUT THIS UNACCEPTABLY LOW QUALITY OF SERVICE?" I see you have suggested that renewal of license is subject to " .....meeting set minimum quality of service standards by June 2014." Why by June 2014? We want good service NOW! Can CCK address this now and get back to us telling us what will be done now and NOT June 2014? Concerned Edith From: kictanet [mailto:kictanet-bounces+eadera=idrc.ca@lists.kictanet.or.ke] On Behalf Of Wambua, Christopher Sent: July 26, 2013 4:48 PM To: Edith Adera Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: [kictanet] CCK to renew Safaricom's licence Importance: High Listers, CCK to renew Safaricom's licence Kenya's largest mobile operator - Safaricom - will pay Kshs2.36billion (US$27million) for renewal of its operating licence for a further term of 10 years. CCK today announced that the renewal of Safaricom's licence would depend on the operator paying the renewal fee upfront and meeting the set minimum quality of service standards by June 2014. Safaricom's initial licence term of 15 years is set to expire on 30th June 2014 but has a provision for a possible renewal for a further term of 10 years. Addressing the media at the CCK offices, CCK Director General Mr. Francis Wangusi said the renewed Safaricom licence would come with a set of new licence terms and conditions negotiated between the regulator and the mobile operator. The licence renewal fee of US$27 million is based on the bid price offered for the third GSM mobile licence by the latest entrant to the mobile telecoms market in Kenya -Econet Wireless Kenya Ltd (now Essar Telecom Kenya Ltd). The Director General said that whereas Safaricom has significantly contributed to the economy, developed innovative products and services and met most its licence obligations, the mobile operator needs to up its game in regard to meeting the set quality of service standards. ''We have considered the fact that whereas Safaricom has met most of its licence obligations, its continued failure to meet the set Quality of Service standards remains a concern that needs to be addressed,'' said Mr. Wangusi. Mr. Wangusi further said the three other mobile operators would pay the same amount for renewal of their licences for a further term of 10 year to ensure parity and a level playing ground for all service providers in the sector. At the sametime, the Director General said the spectrum assigned to the four mobile operators will be subjected to an auction after the expiry of the 10-year renewal term. , The full statement of the Director General is available on the CCK website at http://www.cck.go.ke/news/speeches/2013/Press_statement__Safaricom_licence.p... Wambua
Edith/Listers One of the responsibilities of CCK is to protect the interests of consumers, including against poor quality of service. To this end, CCK independently monitors the QoS on annual basis to determine whether licensees meet the minimum set parameters or standards. Each year, we publish the performance of the four mobile operators in respect to QoS to empower consumers make informed choices in the market. We also levy penalties on non-compliant licensees (i.e. those that do not meet the set standards). The penalties stipulated in the Kenya Information and Communications Act, CAP 411A of Kshs500,000, are however too low and do not serve as an adequate deterrent. To address this, the penalties have been enhanced in the proposed Kenya Information and Communications (Amendment) Bill. CCK is also enhancing its monitoring capabilities to be able to process and publish the performance results more frequently for public information and as a way of encouraging service providers to provide quality services. The monitoring results also assist licensees to identify areas of non-compliance for purposes of improvement. Arising from our concern over QoS performance, CCK has requested non-compliant licensees to submit action plans on how they intend to improve on QoS. Let me also add that QoS is a major consideration in the renewal of licences for the mobile operators and other service providers. The renewal of the Safaricom licence is due in June 2014. CCK is looking forward to enhancing the licence conditions in respect to QoS to make ensure that consumers get value for their money. Best regards, Christopher Wambua Manager - Communications Consumer and Public Affairs Department Communications Commission of Kenya P.O. Box 14448 NAIROBI 00800 Tel: +254 20 4242209 info@cck.go.ke<mailto:info@cck.go.ke> www.cck.go.ke<http://www.cck.go.ke> From: Edith Adera [mailto:eadera@idrc.ca] Sent: Monday, July 29, 2013 4:43 PM To: Wambua, Christopher Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: RE: [kictanet] CCK to renew Safaricom's licence Dear Wambua, Thanks for bringing this issue to our attention. Actually, 2 weeks ago an email I had composed for the list got deleted before I could deliver it...then I got swamped! The email was about the "poor quality of service" from Safaricom - too many dropped calls, uncompleted calls, undelivered sms", hanging sms" etc. and asking the BIG QUESTION: "WHAT IS CCK DOING ABOUT THIS UNACCEPTABLY LOW QUALITY OF SERVICE?" I see you have suggested that renewal of license is subject to " .....meeting set minimum quality of service standards by June 2014." Why by June 2014? We want good service NOW! Can CCK address this now and get back to us telling us what will be done now and NOT June 2014? Concerned Edith From: kictanet [mailto:kictanet-bounces+eadera=idrc.ca@lists.kictanet.or.ke]<mailto:[mailto:kictanet-bounces+eadera=idrc.ca@lists.kictanet.or.ke]> On Behalf Of Wambua, Christopher Sent: July 26, 2013 4:48 PM To: Edith Adera Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: [kictanet] CCK to renew Safaricom's licence Importance: High Listers, CCK to renew Safaricom's licence Kenya's largest mobile operator - Safaricom - will pay Kshs2.36billion (US$27million) for renewal of its operating licence for a further term of 10 years. CCK today announced that the renewal of Safaricom's licence would depend on the operator paying the renewal fee upfront and meeting the set minimum quality of service standards by June 2014. Safaricom's initial licence term of 15 years is set to expire on 30th June 2014 but has a provision for a possible renewal for a further term of 10 years. Addressing the media at the CCK offices, CCK Director General Mr. Francis Wangusi said the renewed Safaricom licence would come with a set of new licence terms and conditions negotiated between the regulator and the mobile operator. The licence renewal fee of US$27 million is based on the bid price offered for the third GSM mobile licence by the latest entrant to the mobile telecoms market in Kenya -Econet Wireless Kenya Ltd (now Essar Telecom Kenya Ltd). The Director General said that whereas Safaricom has significantly contributed to the economy, developed innovative products and services and met most its licence obligations, the mobile operator needs to up its game in regard to meeting the set quality of service standards. ''We have considered the fact that whereas Safaricom has met most of its licence obligations, its continued failure to meet the set Quality of Service standards remains a concern that needs to be addressed,'' said Mr. Wangusi. Mr. Wangusi further said the three other mobile operators would pay the same amount for renewal of their licences for a further term of 10 year to ensure parity and a level playing ground for all service providers in the sector. At the sametime, the Director General said the spectrum assigned to the four mobile operators will be subjected to an auction after the expiry of the 10-year renewal term. , The full statement of the Director General is available on the CCK website at http://www.cck.go.ke/news/speeches/2013/Press_statement__Safaricom_licence.p... Wambua
Bwana Wambua I'm assuming you missed this:- Wambua Thanks for sharing. That's quite abit of change there! :) may I ask a few questions? 1. How does the exchequer spend this money? Is this plowed back into the sector or does it go into the big kitty and used up among the other monies in the treasury? 2. When are the other telcos licenses coming up for renewal? I'm asking this as I feel its pertinent and linked to the continued vibrancy and competitiveness in the sector. I'm very curious whether the other Telcos - Orange, Yu and Airtel have the local balance sheets to afford this new fee unless their mother companies bail them out. The case of Orange is obvious. They are already asking Telcom France and the Kenyan Government to pump in several billion shillings in a rescue package. So my question is this:- When these licenses come up for renewal and these companies fail to pay up what's the plan? Will we yank their licenses? 3. Lastly Wambua, I have asked this question severally. Where are we at on the issue of the Universal Access Fund? Based on the presentation by Madame Susan Mochache-Wekesa it is very obvious that the country requires to double up on the rollout of the NOFBI to ensure universal broadband access. We know that the members are now in place and its been several months. Can we have a status report on the activities so far and their 5 year Strategic Plan? Ali Hussein CEO | 3mice interactive media Ltd Principal | Telemedia Africa Ltd +254 713 601113/ 0770 906375 "The future belongs to him who knows how to wait." - Russian Proverb Sent from my iPad On Jul 29, 2013, at 5:38 PM, "Wambua, Christopher" <Wambua@cck.go.ke> wrote:
Edith/Listers
One of the responsibilities of CCK is to protect the interests of consumers, including against poor quality of service. To this end, CCK independently monitors the QoS on annual basis to determine whether licensees meet the minimum set parameters or standards. Each year, we publish the performance of the four mobile operators in respect to QoS to empower consumers make informed choices in the market. We also levy penalties on non-compliant licensees (i.e. those that do not meet the set standards). The penalties stipulated in the Kenya Information and Communications Act, CAP 411A of Kshs500,000, are however too low and do not serve as an adequate deterrent. To address this, the penalties have been enhanced in the proposed Kenya Information and Communications (Amendment) Bill. CCK is also enhancing its monitoring capabilities to be able to process and publish the performance results more frequently for public information and as a way of encouraging service providers to provide quality services.
The monitoring results also assist licensees to identify areas of non-compliance for purposes of improvement. Arising from our concern over QoS performance, CCK has requested non-compliant licensees to submit action plans on how they intend to improve on QoS.
Let me also add that QoS is a major consideration in the renewal of licences for the mobile operators and other service providers. The renewal of the Safaricom licence is due in June 2014. CCK is looking forward to enhancing the licence conditions in respect to QoS to make ensure that consumers get value for their money.
Best regards,
Christopher Wambua Manager – Communications Consumer and Public Affairs Department Communications Commission of Kenya P.O. Box 14448 NAIROBI 00800 Tel: +254 20 4242209 info@cck.go.ke www.cck.go.ke
From: Edith Adera [mailto:eadera@idrc.ca] Sent: Monday, July 29, 2013 4:43 PM To: Wambua, Christopher Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: RE: [kictanet] CCK to renew Safaricom's licence
Dear Wambua,
Thanks for bringing this issue to our attention. Actually, 2 weeks ago an email I had composed for the list got deleted before I could deliver it…then I got swamped!
The email was about the “poor quality of service” from Safaricom – too many dropped calls, uncompleted calls, undelivered sms”, hanging sms” etc. and asking the BIG QUESTION: “WHAT IS CCK DOING ABOUT THIS UNACCEPTABLY LOW QUALITY OF SERVICE?”
I see you have suggested that renewal of license is subject to “ …..meeting set minimum quality of service standards by June 2014.”
Why by June 2014?
We want good service NOW!
Can CCK address this now and get back to us telling us what will be done now and NOT June 2014?
Concerned Edith
From: kictanet [mailto:kictanet-bounces+eadera=idrc.ca@lists.kictanet.or.ke] On Behalf Of Wambua, Christopher Sent: July 26, 2013 4:48 PM To: Edith Adera Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: [kictanet] CCK to renew Safaricom's licence Importance: High
Listers,
CCK to renew Safaricom’s licence
Kenya’s largest mobile operator – Safaricom – will pay Kshs2.36billion (US$27million) for renewal of its operating licence for a further term of 10 years.
CCK today announced that the renewal of Safaricom’s licence would depend on the operator paying the renewal fee upfront and meeting the set minimum quality of service standards by June 2014. Safaricom’s initial licence term of 15 years is set to expire on 30th June 2014 but has a provision for a possible renewal for a further term of 10 years.
Addressing the media at the CCK offices, CCK Director General Mr. Francis Wangusi said the renewed Safaricom licence would come with a set of new licence terms and conditions negotiated between the regulator and the mobile operator.
The licence renewal fee of US$27 million is based on the bid price offered for the third GSM mobile licence by the latest entrant to the mobile telecoms market in Kenya -Econet Wireless Kenya Ltd (now Essar Telecom Kenya Ltd).
The Director General said that whereas Safaricom has significantly contributed to the economy, developed innovative products and services and met most its licence obligations, the mobile operator needs to up its game in regard to meeting the set quality of service standards.
‘‘We have considered the fact that whereas Safaricom has met most of its licence obligations, its continued failure to meet the set Quality of Service standards remains a concern that needs to be addressed,’’ said Mr. Wangusi.
Mr. Wangusi further said the three other mobile operators would pay the same amount for renewal of their licences for a further term of 10 year to ensure parity and a level playing ground for all service providers in the sector.
At the sametime, the Director General said the spectrum assigned to the four mobile operators will be subjected to an auction after the expiry of the 10-year renewal term. , The full statement of the Director General is available on the CCK website at http://www.cck.go.ke/news/speeches/2013/Press_statement__Safaricom_licence.p...
Wambua _______________________________________________ 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/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.
Ali, I missed it, and thanks for the reminder. As you may appreciate, I have no competence to speak on behalf of the National Treasury. However, my assumption is that that the money goes to big kitty. This may not necessarily be bad for the sector as the same money could be used to develop infrastructure i.e. roads, electricity etc. which are crucial for deployment of ICT infrastructure. Infrastructure is also important in supporting productive activities without which consumption of ICT services would be a challenge. The renewal of Airtel is due in February 2014, Essar in 2018, and Orange in December 2022. It is not expected that shareholders would fail to pay as they have many options of raising the money. If they fail to meet the renewal requirements, the Commission would consider a number of options including auctioning the spectrum. In respect to the Fund, the Commission is currently consolidating licensee comments/input on the USF framework. The framework is meant to inform the public and all stakeholders about the key aspects, considerations, and principles that the Commission shall uphold in administering the Fund (the framework is available at http://www.cck.go.ke/links/consultations/current_consultations/USF-Framework...) . Once this exercise is completed, the Commission shall embark on the process of invoicing licensees for the levy with a view to bringing the Fund into operation. Best regards, Christopher Wambua Manager – Communications Consumer and Public Affairs Department Communications Commission of Kenya P.O. Box 14448 NAIROBI 00800 Tel: +254 20 4242209 info@cck.go.ke<mailto:info@cck.go.ke> www.cck.go.ke<http://www.cck.go.ke> From: Ali Hussein [mailto:ali@hussein.me.ke] Sent: Tuesday, July 30, 2013 3:52 AM To: Wambua, Christopher Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: Re: [kictanet] CCK to renew Safaricom's licence Bwana Wambua I'm assuming you missed this:- Wambua Thanks for sharing. That's quite abit of change there! :) may I ask a few questions? 1. How does the exchequer spend this money? Is this plowed back into the sector or does it go into the big kitty and used up among the other monies in the treasury? 2. When are the other telcos licenses coming up for renewal? I'm asking this as I feel its pertinent and linked to the continued vibrancy and competitiveness in the sector. I'm very curious whether the other Telcos - Orange, Yu and Airtel have the local balance sheets to afford this new fee unless their mother companies bail them out. The case of Orange is obvious. They are already asking Telcom France and the Kenyan Government to pump in several billion shillings in a rescue package. So my question is this:- When these licenses come up for renewal and these companies fail to pay up what's the plan? Will we yank their licenses? 3. Lastly Wambua, I have asked this question severally. Where are we at on the issue of the Universal Access Fund? Based on the presentation by Madame Susan Mochache-Wekesa it is very obvious that the country requires to double up on the rollout of the NOFBI to ensure universal broadband access. We know that the members are now in place and its been several months. Can we have a status report on the activities so far and their 5 year Strategic Plan? Ali Hussein CEO | 3mice interactive media Ltd Principal | Telemedia Africa Ltd +254 713 601113/ 0770 906375 "The future belongs to him who knows how to wait." - Russian Proverb Sent from my iPad On Jul 29, 2013, at 5:38 PM, "Wambua, Christopher" <Wambua@cck.go.ke<mailto:Wambua@cck.go.ke>> wrote: Edith/Listers One of the responsibilities of CCK is to protect the interests of consumers, including against poor quality of service. To this end, CCK independently monitors the QoS on annual basis to determine whether licensees meet the minimum set parameters or standards. Each year, we publish the performance of the four mobile operators in respect to QoS to empower consumers make informed choices in the market. We also levy penalties on non-compliant licensees (i.e. those that do not meet the set standards). The penalties stipulated in the Kenya Information and Communications Act, CAP 411A of Kshs500,000, are however too low and do not serve as an adequate deterrent. To address this, the penalties have been enhanced in the proposed Kenya Information and Communications (Amendment) Bill. CCK is also enhancing its monitoring capabilities to be able to process and publish the performance results more frequently for public information and as a way of encouraging service providers to provide quality services. The monitoring results also assist licensees to identify areas of non-compliance for purposes of improvement. Arising from our concern over QoS performance, CCK has requested non-compliant licensees to submit action plans on how they intend to improve on QoS. Let me also add that QoS is a major consideration in the renewal of licences for the mobile operators and other service providers. The renewal of the Safaricom licence is due in June 2014. CCK is looking forward to enhancing the licence conditions in respect to QoS to make ensure that consumers get value for their money. Best regards, Christopher Wambua Manager – Communications Consumer and Public Affairs Department Communications Commission of Kenya P.O. Box 14448 NAIROBI 00800 Tel: +254 20 4242209 info@cck.go.ke<mailto:info@cck.go.ke> www.cck.go.ke<http://www.cck.go.ke> From: Edith Adera [mailto:eadera@idrc.ca] Sent: Monday, July 29, 2013 4:43 PM To: Wambua, Christopher Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: RE: [kictanet] CCK to renew Safaricom's licence Dear Wambua, Thanks for bringing this issue to our attention. Actually, 2 weeks ago an email I had composed for the list got deleted before I could deliver it…then I got swamped! The email was about the “poor quality of service” from Safaricom – too many dropped calls, uncompleted calls, undelivered sms”, hanging sms” etc. and asking the BIG QUESTION: “WHAT IS CCK DOING ABOUT THIS UNACCEPTABLY LOW QUALITY OF SERVICE?” I see you have suggested that renewal of license is subject to “ …..meeting set minimum quality of service standards by June 2014.” Why by June 2014? We want good service NOW! Can CCK address this now and get back to us telling us what will be done now and NOT June 2014? Concerned Edith From: kictanet [mailto:kictanet-bounces+eadera=idrc.ca@lists.kictanet.or.ke]<mailto:[mailto:kictanet-bounces+eadera=idrc.ca@lists.kictanet.or.ke]> On Behalf Of Wambua, Christopher Sent: July 26, 2013 4:48 PM To: Edith Adera Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: [kictanet] CCK to renew Safaricom's licence Importance: High Listers, CCK to renew Safaricom’s licence Kenya’s largest mobile operator – Safaricom – will pay Kshs2.36billion (US$27million) for renewal of its operating licence for a further term of 10 years. CCK today announced that the renewal of Safaricom’s licence would depend on the operator paying the renewal fee upfront and meeting the set minimum quality of service standards by June 2014. Safaricom’s initial licence term of 15 years is set to expire on 30th June 2014 but has a provision for a possible renewal for a further term of 10 years. Addressing the media at the CCK offices, CCK Director General Mr. Francis Wangusi said the renewed Safaricom licence would come with a set of new licence terms and conditions negotiated between the regulator and the mobile operator. The licence renewal fee of US$27 million is based on the bid price offered for the third GSM mobile licence by the latest entrant to the mobile telecoms market in Kenya -Econet Wireless Kenya Ltd (now Essar Telecom Kenya Ltd). The Director General said that whereas Safaricom has significantly contributed to the economy, developed innovative products and services and met most its licence obligations, the mobile operator needs to up its game in regard to meeting the set quality of service standards. ‘‘We have considered the fact that whereas Safaricom has met most of its licence obligations, its continued failure to meet the set Quality of Service standards remains a concern that needs to be addressed,’’ said Mr. Wangusi. Mr. Wangusi further said the three other mobile operators would pay the same amount for renewal of their licences for a further term of 10 year to ensure parity and a level playing ground for all service providers in the sector. At the sametime, the Director General said the spectrum assigned to the four mobile operators will be subjected to an auction after the expiry of the 10-year renewal term. , The full statement of the Director General is available on the CCK website at http://www.cck.go.ke/news/speeches/2013/Press_statement__Safaricom_licence.p... Wambua _______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke<mailto: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/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.
Wambua I figured. :-) Thanks for the response. I'm still curious about the USF. Why is it taking so long to get off the ground? Regards *Ali Hussein* *CEO, 3mice interactive media ltd* *Partner, Telemedia Africa Ltd * Tel: +254713601113 Twitter: @AliHKassim Skype: abu-jomo LinkedIn: http://ke.linkedin.com/in/alihkassim<http://ke.linkedin.com/in/alihkassim> Blog: www.alyhussein.com 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 Tue, Jul 30, 2013 at 8:06 AM, Wambua, Christopher <Wambua@cck.go.ke>wrote:
Ali,****
** **
I missed it, and thanks for the reminder.****
** **
As you may appreciate, I have no competence to speak on behalf of the National Treasury. However, my assumption is that that the money goes to big kitty. This may not necessarily be bad for the sector as the same money could be used to develop infrastructure i.e. roads, electricity etc. which are crucial for deployment of ICT infrastructure. Infrastructure is also important in supporting productive activities without which consumption of ICT services would be a challenge.****
** **
The renewal of Airtel is due in February 2014, Essar in 2018, and Orange in December 2022. It is not expected that shareholders would fail to pay as they have many options of raising the money. If they fail to meet the renewal requirements, the Commission would *consider* a number of options including auctioning the spectrum. ****
** **
In respect to the Fund, the Commission is currently consolidating licensee comments/input on the USF framework. The framework is meant to inform the public and all stakeholders about the key aspects, considerations, and principles that the Commission shall uphold in administering the Fund (the framework is available at http://www.cck.go.ke/links/consultations/current_consultations/USF-Framework...) . Once this exercise is completed, the Commission shall embark on the process of invoicing licensees for the levy with a view to bringing the Fund into operation. ****
** **
Best regards,****
** **
*Christopher Wambua*
*Manager – Communications*
*Consumer and Public Affairs Department*
*Communications Commission of Kenya*
*P.O. Box 14448 NAIROBI 00800*
*Tel: +254 20 4242209*
*info@cck.go.ke*
*www.cck.go.ke*
* *
** **
** **
*From:* Ali Hussein [mailto:ali@hussein.me.ke] *Sent:* Tuesday, July 30, 2013 3:52 AM
*To:* Wambua, Christopher *Cc:* Consumer and Public Affairs; KICTAnet ICT Policy Discussions *Subject:* Re: [kictanet] CCK to renew Safaricom's licence****
** **
Bwana Wambua****
** **
I'm assuming you missed this:-****
** **
Wambua****
****
Thanks for sharing. That's quite abit of change there! :) may I ask a few questions?****
****
1. How does the exchequer spend this money? Is this plowed back into the sector or does it go into the big kitty and used up among the other monies in the treasury?****
****
2. When are the other telcos licenses coming up for renewal? I'm asking this as I feel its pertinent and linked to the continued vibrancy and competitiveness in the sector. I'm very curious whether the other Telcos - Orange, Yu and Airtel have the local balance sheets to afford this new fee unless their mother companies bail them out. The case of Orange is obvious. They are already asking Telcom France and the Kenyan Government to pump in several billion shillings in a rescue package. So my question is this:- When these licenses come up for renewal and these companies fail to pay up what's the plan? Will we yank their licenses? ****
****
3. Lastly Wambua, I have asked this question severally. Where are we at on the issue of the Universal Access Fund? Based on the presentation by Madame Susan Mochache-Wekesa it is very obvious that the country requires to double up on the rollout of the NOFBI to ensure universal broadband access. We know that the members are now in place and its been several months. Can we have a status report on the activities so far and their 5 year Strategic Plan?****
** **
** **
Ali Hussein****
CEO | 3mice interactive media Ltd****
Principal | Telemedia Africa Ltd****
** **
+254 713 601113/ 0770 906375****
****
"The future belongs to him who knows how to wait." - Russian Proverb****
** **
Sent from my iPad****
On Jul 29, 2013, at 5:38 PM, "Wambua, Christopher" <Wambua@cck.go.ke> wrote:****
Edith/Listers****
****
One of the responsibilities of CCK is to protect the interests of consumers, including against poor quality of service. To this end, CCK independently monitors the QoS on annual basis to determine whether licensees meet the minimum set parameters or standards. Each year, we publish the performance of the four mobile operators in respect to QoS to empower consumers make informed choices in the market. We also levy penalties on non-compliant licensees (i.e. those that do not meet the set standards). The penalties stipulated in the Kenya Information and Communications Act, CAP 411A of Kshs500,000, are however too low and do not serve as an adequate deterrent. To address this, the penalties have been enhanced in the proposed Kenya Information and Communications (Amendment) Bill. CCK is also enhancing its monitoring capabilities to be able to process and publish the performance results more frequently for public information and as a way of encouraging service providers to provide quality services. ****
****
The monitoring results also assist licensees to identify areas of non-compliance for purposes of improvement. Arising from our concern over QoS performance, CCK has requested non-compliant licensees to submit action plans on how they intend to improve on QoS. ****
****
Let me also add that QoS is a major consideration in the renewal of licences for the mobile operators and other service providers. The renewal of the Safaricom licence is due in June 2014. CCK is looking forward to enhancing the licence conditions in respect to QoS to make ensure that consumers get value for their money. ****
****
Best regards,****
****
*Christopher Wambua*****
*Manager – Communications*****
*Consumer and Public Affairs Department*****
*Communications Commission of Kenya*****
*P.O. Box 14448 NAIROBI 00800*****
*Tel: +254 20 4242209*****
*info@cck.go.ke*****
*www.cck.go.ke*****
* *****
****
****
*From:* Edith Adera [mailto:eadera@idrc.ca <eadera@idrc.ca>] *Sent:* Monday, July 29, 2013 4:43 PM *To:* Wambua, Christopher *Cc:* Consumer and Public Affairs; KICTAnet ICT Policy Discussions *Subject:* RE: [kictanet] CCK to renew Safaricom's licence****
****
Dear Wambua,****
****
Thanks for bringing this issue to our attention. Actually, 2 weeks ago an email I had composed for the list got deleted before I could deliver it…then I got swamped!****
****
The email was about the “poor quality of service” from Safaricom – too many dropped calls, uncompleted calls, undelivered sms”, hanging sms” etc. and asking the BIG QUESTION: “WHAT IS CCK DOING ABOUT THIS UNACCEPTABLY LOW QUALITY OF SERVICE?”****
****
I see you have suggested that renewal of license is subject to “ …..meeting set minimum quality of service standards by June 2014.”****
****
Why by June 2014?****
****
We want good service NOW!****
****
Can CCK address this *now* and get back to us telling us what will be done *now* and NOT June 2014?****
****
Concerned Edith****
****
****
*From:* kictanet [mailto:kictanet-bounces+eadera=idrc.ca@lists.kictanet.or.ke] *On Behalf Of *Wambua, Christopher *Sent:* July 26, 2013 4:48 PM *To:* Edith Adera *Cc:* Consumer and Public Affairs; KICTAnet ICT Policy Discussions *Subject:* [kictanet] CCK to renew Safaricom's licence *Importance:* High****
****
Listers, ****
****
*CCK to renew Safaricom’s licence *****
****
Kenya’s largest mobile operator – Safaricom – will pay Kshs2.36billion (US$27million) for renewal of its operating licence for a further term of 10 years.****
****
CCK today announced that the renewal of Safaricom’s licence would depend on the operator paying the renewal fee upfront and meeting the set minimum quality of service standards by June 2014. Safaricom’s initial licence term of 15 years is set to expire on 30th June 2014 but has a provision for a possible renewal for a further term of 10 years. ****
****
Addressing the media at the CCK offices, CCK Director General Mr. Francis Wangusi said the renewed Safaricom licence would come with a set of new licence terms and conditions negotiated between the regulator and the mobile operator. ****
****
The licence renewal fee of US$27 million is based on the bid price offered for the third GSM mobile licence by the latest entrant to the mobile telecoms market in Kenya -Econet Wireless Kenya Ltd (now Essar Telecom Kenya Ltd). ****
****
The Director General said that whereas Safaricom has significantly contributed to the economy, developed innovative products and services and met most its licence obligations, the mobile operator needs to up its game in regard to meeting the set quality of service standards. ****
****
‘‘We have considered the fact that whereas Safaricom has met most of its licence obligations, its continued failure to meet the set Quality of Service standards remains a concern that needs to be addressed,’’ said Mr. Wangusi.****
****
Mr. Wangusi further said the three other mobile operators would pay the same amount for renewal of their licences for a further term of 10 year to ensure parity and a level playing ground for all service providers in the sector. ****
****
At the sametime, the Director General said the spectrum assigned to the four mobile operators will be subjected to an auction after the expiry of the 10-year renewal term. , ****
The full statement of the Director General is available on the CCK website at http://www.cck.go.ke/news/speeches/2013/Press_statement__Safaricom_licence.p... ****
****
*Wambua*****
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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.****
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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.
Wambua, This is a very "generic" response! Am I right in reading from your email that NOTHING much is done for poor QoS until licenses are up for renewal? What SPECIFIC actions have been taken to-date? When should we expect better QoS before June 2014? OR are we dealing with a case of "regulatory capture"? Edith From: Wambua, Christopher [mailto:Wambua@cck.go.ke] Sent: July 29, 2013 5:39 PM To: Edith Adera Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: RE: [kictanet] CCK to renew Safaricom's licence Importance: High Edith/Listers One of the responsibilities of CCK is to protect the interests of consumers, including against poor quality of service. To this end, CCK independently monitors the QoS on annual basis to determine whether licensees meet the minimum set parameters or standards. Each year, we publish the performance of the four mobile operators in respect to QoS to empower consumers make informed choices in the market. We also levy penalties on non-compliant licensees (i.e. those that do not meet the set standards). The penalties stipulated in the Kenya Information and Communications Act, CAP 411A of Kshs500,000, are however too low and do not serve as an adequate deterrent. To address this, the penalties have been enhanced in the proposed Kenya Information and Communications (Amendment) Bill. CCK is also enhancing its monitoring capabilities to be able to process and publish the performance results more frequently for public information and as a way of encouraging service providers to provide quality services. The monitoring results also assist licensees to identify areas of non-compliance for purposes of improvement. Arising from our concern over QoS performance, CCK has requested non-compliant licensees to submit action plans on how they intend to improve on QoS. Let me also add that QoS is a major consideration in the renewal of licences for the mobile operators and other service providers. The renewal of the Safaricom licence is due in June 2014. CCK is looking forward to enhancing the licence conditions in respect to QoS to make ensure that consumers get value for their money. Best regards, Christopher Wambua Manager - Communications Consumer and Public Affairs Department Communications Commission of Kenya P.O. Box 14448 NAIROBI 00800 Tel: +254 20 4242209 info@cck.go.ke<mailto:info@cck.go.ke> www.cck.go.ke<http://www.cck.go.ke> From: Edith Adera [mailto:eadera@idrc.ca]<mailto:[mailto:eadera@idrc.ca]> Sent: Monday, July 29, 2013 4:43 PM To: Wambua, Christopher Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: RE: [kictanet] CCK to renew Safaricom's licence Dear Wambua, Thanks for bringing this issue to our attention. Actually, 2 weeks ago an email I had composed for the list got deleted before I could deliver it...then I got swamped! The email was about the "poor quality of service" from Safaricom - too many dropped calls, uncompleted calls, undelivered sms", hanging sms" etc. and asking the BIG QUESTION: "WHAT IS CCK DOING ABOUT THIS UNACCEPTABLY LOW QUALITY OF SERVICE?" I see you have suggested that renewal of license is subject to " .....meeting set minimum quality of service standards by June 2014." Why by June 2014? We want good service NOW! Can CCK address this now and get back to us telling us what will be done now and NOT June 2014? Concerned Edith From: kictanet [mailto:kictanet-bounces+eadera=idrc.ca@lists.kictanet.or.ke]<mailto:[mailto:kictanet-bounces+eadera=idrc.ca@lists.kictanet.or.ke]> On Behalf Of Wambua, Christopher Sent: July 26, 2013 4:48 PM To: Edith Adera Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: [kictanet] CCK to renew Safaricom's licence Importance: High Listers, CCK to renew Safaricom's licence Kenya's largest mobile operator - Safaricom - will pay Kshs2.36billion (US$27million) for renewal of its operating licence for a further term of 10 years. CCK today announced that the renewal of Safaricom's licence would depend on the operator paying the renewal fee upfront and meeting the set minimum quality of service standards by June 2014. Safaricom's initial licence term of 15 years is set to expire on 30th June 2014 but has a provision for a possible renewal for a further term of 10 years. Addressing the media at the CCK offices, CCK Director General Mr. Francis Wangusi said the renewed Safaricom licence would come with a set of new licence terms and conditions negotiated between the regulator and the mobile operator. The licence renewal fee of US$27 million is based on the bid price offered for the third GSM mobile licence by the latest entrant to the mobile telecoms market in Kenya -Econet Wireless Kenya Ltd (now Essar Telecom Kenya Ltd). The Director General said that whereas Safaricom has significantly contributed to the economy, developed innovative products and services and met most its licence obligations, the mobile operator needs to up its game in regard to meeting the set quality of service standards. ''We have considered the fact that whereas Safaricom has met most of its licence obligations, its continued failure to meet the set Quality of Service standards remains a concern that needs to be addressed,'' said Mr. Wangusi. Mr. Wangusi further said the three other mobile operators would pay the same amount for renewal of their licences for a further term of 10 year to ensure parity and a level playing ground for all service providers in the sector. At the sametime, the Director General said the spectrum assigned to the four mobile operators will be subjected to an auction after the expiry of the 10-year renewal term. , The full statement of the Director General is available on the CCK website at http://www.cck.go.ke/news/speeches/2013/Press_statement__Safaricom_licence.p... Wambua
@Edith, I am not a regulator and neither do I intend to shield Wambua/CCK from your question. But I can tell you one way to deal with poor service is to provide competition which I believe CCK has done very well. (Un?)Fortunately through sheer hard work (or otherwise?) Safcom has managed to get 78% market share in the data market. So they are for all purposes and intent a monopoly in that space. Monopolies by nature tend to be dictate alot of things - including how to make more money within the shortest time and using the lowest effort (squeezed resources). Capitalist call this efficiency, but Users reflect it as poor quality :-) Monopolies as you know are a hard nut to crack (ask Microsoft, Google, AT&T and others). With all due respect, I highly doubt that CCK can crack Safaricom in its own..it might have to explore legal avenues available in the Competition laws. Sponsor one Mutoro, Omutatah et. al. to fundamentally break up the giant that Safaricom has become. And I say this with a heavy heart since I am both a (not-so-big) Safaricom shareholder and 12year old subscriber/customer and I have no clue what or how such a break-up would play out. Choices have consequences.... walu. ________________________________ From: Edith Adera <eadera@idrc.ca> To: jwalu@yahoo.com Cc: Consumer and Public Affairs <CPA@cck.go.ke>; KICTAnet ICT Policy Discussions <kictanet@lists.kictanet.or.ke> Sent: Tuesday, July 30, 2013 11:28 AM Subject: Re: [kictanet] CCK to renew Safaricom's licence Wambua, This is a very “generic” response! Am I right in reading from your email that NOTHING much is done for poor QoS until licenses are up for renewal? What SPECIFIC actions have been taken to-date? When should we expect better QoS before June 2014? OR are we dealing with a case of “regulatory capture”? Edith From:Wambua, Christopher [mailto:Wambua@cck.go.ke] Sent: July 29, 2013 5:39 PM To: Edith Adera Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: RE: [kictanet] CCK to renew Safaricom's licence Importance: High Edith/Listers One of the responsibilities of CCK is to protect the interests of consumers, including against poor quality of service. To this end, CCK independently monitors the QoS on annual basis to determine whether licensees meet the minimum set parameters or standards. Each year, we publish the performance of the four mobile operators in respect to QoS to empower consumers make informed choices in the market. We also levy penalties on non-compliant licensees (i.e. those that do not meet the set standards). The penalties stipulated in the Kenya Information and Communications Act, CAP 411A of Kshs500,000, are however too low and do not serve as an adequate deterrent. To address this, the penalties have been enhanced in the proposed Kenya Information and Communications (Amendment) Bill. CCK is also enhancing its monitoring capabilities to be able to process and publish the performance results more frequently for public information and as a way of encouraging service providers to provide quality services. The monitoring results also assist licensees to identify areas of non-compliance for purposes of improvement. Arising from our concern over QoS performance, CCK has requested non-compliant licensees to submit action plans on how they intend to improve on QoS. Let me also add that QoS is a major consideration in the renewal of licences for the mobile operators and other service providers. The renewal of the Safaricom licence is due in June 2014. CCK is looking forward to enhancing the licence conditions in respect to QoS to make ensure that consumers get value for their money. Best regards, Christopher Wambua Manager – Communications Consumer and Public Affairs Department Communications Commission of Kenya P.O. Box 14448 NAIROBI 00800 Tel: +254 20 4242209 info@cck.go.ke www.cck.go.ke From:Edith Adera [mailto:eadera@idrc.ca] Sent: Monday, July 29, 2013 4:43 PM To: Wambua, Christopher Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: RE: [kictanet] CCK to renew Safaricom's licence Dear Wambua, Thanks for bringing this issue to our attention. Actually, 2 weeks ago an email I had composed for the list got deleted before I could deliver it…then I got swamped! The email was about the “poor quality of service” from Safaricom – too many dropped calls, uncompleted calls, undelivered sms”, hanging sms” etc. and asking the BIG QUESTION: “WHAT IS CCK DOING ABOUT THIS UNACCEPTABLY LOW QUALITY OF SERVICE?” I see you have suggested that renewal of license is subject to “ …..meeting set minimum quality of service standards by June 2014.” Why by June 2014? We want good service NOW! Can CCK address this now and get back to us telling us what will be done now and NOT June 2014? Concerned Edith From:kictanet [mailto:kictanet-bounces+eadera=idrc.ca@lists.kictanet.or.ke] On Behalf Of Wambua, Christopher Sent: July 26, 2013 4:48 PM To: Edith Adera Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: [kictanet] CCK to renew Safaricom's licence Importance: High Listers, CCK to renew Safaricom’s licence Kenya’s largest mobile operator – Safaricom – will pay Kshs2.36billion (US$27million) for renewal of its operating licence for a further term of 10 years. CCK today announced that the renewal of Safaricom’s licence would depend on the operator paying the renewal fee upfront and meeting the set minimum quality of service standards by June 2014. Safaricom’s initial licence term of 15 years is set to expire on 30th June 2014 but has a provision for a possible renewal for a further term of 10 years. Addressing the media at the CCK offices, CCK Director General Mr. Francis Wangusi said the renewed Safaricom licence would come with a set of new licence terms and conditions negotiated between the regulator and the mobile operator. The licence renewal fee of US$27 million is based on the bid price offered for the third GSM mobile licence by the latest entrant to the mobile telecoms market in Kenya -Econet Wireless Kenya Ltd (now Essar Telecom Kenya Ltd). The Director General said that whereas Safaricom has significantly contributed to the economy, developed innovative products and services and met most its licence obligations, the mobile operator needs to up its game in regard to meeting the set quality of service standards. ‘‘We have considered the fact that whereas Safaricom has met most of its licence obligations, its continued failure to meet the set Quality of Service standards remains a concern that needs to be addressed,’’ said Mr. Wangusi. Mr. Wangusi further said the three other mobile operators would pay the same amount for renewal of their licences for a further term of 10 year to ensure parity and a level playing ground for all service providers in the sector. At the sametime, the Director General said the spectrum assigned to the four mobile operators will be subjected to an auction after the expiry of the 10-year renewal term. , The full statement of the Director General is available on the CCK website at http://www.cck.go.ke/news/speeches/2013/Press_statement__Safaricom_licence.p... Wambua _______________________________________________ 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.
Walu, Well presented! We should be worried, VERY worried, when the “referee” begins to fear the “player”!! Poor QoS is acknowledged, but NO tangible action! I feel that CCK is “skirting around the problem”!! Edith From: Walubengo J [mailto:jwalu@yahoo.com] Sent: July 30, 2013 2:37 PM To: Edith Adera Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: Re: [kictanet] CCK to renew Safaricom's licence @Edith, I am not a regulator and neither do I intend to shield Wambua/CCK from your question. But I can tell you one way to deal with poor service is to provide competition which I believe CCK has done very well. (Un?)Fortunately through sheer hard work (or otherwise?) Safcom has managed to get 78% market share in the data market. So they are for all purposes and intent a monopoly in that space. Monopolies by nature tend to be dictate alot of things - including how to make more money within the shortest time and using the lowest effort (squeezed resources). Capitalist call this efficiency, but Users reflect it as poor quality :-) Monopolies as you know are a hard nut to crack (ask Microsoft, Google, AT&T and others). With all due respect, I highly doubt that CCK can crack Safaricom in its own..it might have to explore legal avenues available in the Competition laws. Sponsor one Mutoro, Omutatah et. al. to fundamentally break up the giant that Safaricom has become. And I say this with a heavy heart since I am both a (not-so-big) Safaricom shareholder and 12year old subscriber/customer and I have no clue what or how such a break-up would play out. Choices have consequences.... walu. ________________________________ From: Edith Adera <eadera@idrc.ca<mailto:eadera@idrc.ca>> To: jwalu@yahoo.com<mailto:jwalu@yahoo.com> Cc: Consumer and Public Affairs <CPA@cck.go.ke<mailto:CPA@cck.go.ke>>; KICTAnet ICT Policy Discussions <kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke>> Sent: Tuesday, July 30, 2013 11:28 AM Subject: Re: [kictanet] CCK to renew Safaricom's licence Wambua, This is a very “generic” response! Am I right in reading from your email that NOTHING much is done for poor QoS until licenses are up for renewal? What SPECIFIC actions have been taken to-date? When should we expect better QoS before June 2014? OR are we dealing with a case of “regulatory capture”? Edith From: Wambua, Christopher [mailto:Wambua@cck.go.ke]<mailto:[mailto:Wambua@cck.go.ke]> Sent: July 29, 2013 5:39 PM To: Edith Adera Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: RE: [kictanet] CCK to renew Safaricom's licence Importance: High Edith/Listers One of the responsibilities of CCK is to protect the interests of consumers, including against poor quality of service. To this end, CCK independently monitors the QoS on annual basis to determine whether licensees meet the minimum set parameters or standards. Each year, we publish the performance of the four mobile operators in respect to QoS to empower consumers make informed choices in the market. We also levy penalties on non-compliant licensees (i.e. those that do not meet the set standards). The penalties stipulated in the Kenya Information and Communications Act, CAP 411A of Kshs500,000, are however too low and do not serve as an adequate deterrent. To address this, the penalties have been enhanced in the proposed Kenya Information and Communications (Amendment) Bill. CCK is also enhancing its monitoring capabilities to be able to process and publish the performance results more frequently for public information and as a way of encouraging service providers to provide quality services. The monitoring results also assist licensees to identify areas of non-compliance for purposes of improvement. Arising from our concern over QoS performance, CCK has requested non-compliant licensees to submit action plans on how they intend to improve on QoS. Let me also add that QoS is a major consideration in the renewal of licences for the mobile operators and other service providers. The renewal of the Safaricom licence is due in June 2014. CCK is looking forward to enhancing the licence conditions in respect to QoS to make ensure that consumers get value for their money. Best regards, Christopher Wambua Manager – Communications Consumer and Public Affairs Department Communications Commission of Kenya P.O. Box 14448 NAIROBI 00800 Tel: +254 20 4242209 info@cck.go.ke<mailto:info@cck.go.ke> www.cck.go.ke<http://www.cck.go.ke/> From: Edith Adera [mailto:eadera@idrc.ca]<mailto:[mailto:eadera@idrc.ca]> Sent: Monday, July 29, 2013 4:43 PM To: Wambua, Christopher Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: RE: [kictanet] CCK to renew Safaricom's licence Dear Wambua, Thanks for bringing this issue to our attention. Actually, 2 weeks ago an email I had composed for the list got deleted before I could deliver it…then I got swamped! The email was about the “poor quality of service” from Safaricom – too many dropped calls, uncompleted calls, undelivered sms”, hanging sms” etc. and asking the BIG QUESTION: “WHAT IS CCK DOING ABOUT THIS UNACCEPTABLY LOW QUALITY OF SERVICE?” I see you have suggested that renewal of license is subject to “ …..meeting set minimum quality of service standards by June 2014.” Why by June 2014? We want good service NOW! Can CCK address this now and get back to us telling us what will be done now and NOT June 2014? Concerned Edith From: kictanet [mailto:kictanet-bounces+eadera=idrc.ca@lists.kictanet.or.ke]<mailto:[mailto:kictanet-bounces+eadera=idrc.ca@lists.kictanet.or.ke]> On Behalf Of Wambua, Christopher Sent: July 26, 2013 4:48 PM To: Edith Adera Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: [kictanet] CCK to renew Safaricom's licence Importance: High Listers, CCK to renew Safaricom’s licence Kenya’s largest mobile operator – Safaricom – will pay Kshs2.36billion (US$27million) for renewal of its operating licence for a further term of 10 years. CCK today announced that the renewal of Safaricom’s licence would depend on the operator paying the renewal fee upfront and meeting the set minimum quality of service standards by June 2014. Safaricom’s initial licence term of 15 years is set to expire on 30th June 2014 but has a provision for a possible renewal for a further term of 10 years. Addressing the media at the CCK offices, CCK Director General Mr. Francis Wangusi said the renewed Safaricom licence would come with a set of new licence terms and conditions negotiated between the regulator and the mobile operator. The licence renewal fee of US$27 million is based on the bid price offered for the third GSM mobile licence by the latest entrant to the mobile telecoms market in Kenya -Econet Wireless Kenya Ltd (now Essar Telecom Kenya Ltd). The Director General said that whereas Safaricom has significantly contributed to the economy, developed innovative products and services and met most its licence obligations, the mobile operator needs to up its game in regard to meeting the set quality of service standards. ‘‘We have considered the fact that whereas Safaricom has met most of its licence obligations, its continued failure to meet the set Quality of Service standards remains a concern that needs to be addressed,’’ said Mr. Wangusi. Mr. Wangusi further said the three other mobile operators would pay the same amount for renewal of their licences for a further term of 10 year to ensure parity and a level playing ground for all service providers in the sector. At the sametime, the Director General said the spectrum assigned to the four mobile operators will be subjected to an auction after the expiry of the 10-year renewal term. , The full statement of the Director General is available on the CCK website at http://www.cck.go.ke/news/speeches/2013/Press_statement__Safaricom_licence.p... Wambua _______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke<mailto: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.
True Edith. "He who pays the piper calls the tune" On 30/07/2013, Edith Adera <eadera@idrc.ca> wrote:
Walu,
Well presented!
We should be worried, VERY worried, when the “referee” begins to fear the “player”!!
Poor QoS is acknowledged, but NO tangible action!
I feel that CCK is “skirting around the problem”!!
Edith
From: Walubengo J [mailto:jwalu@yahoo.com] Sent: July 30, 2013 2:37 PM To: Edith Adera Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: Re: [kictanet] CCK to renew Safaricom's licence
@Edith,
I am not a regulator and neither do I intend to shield Wambua/CCK from your question. But I can tell you one way to deal with poor service is to provide competition which I believe CCK has done very well.
(Un?)Fortunately through sheer hard work (or otherwise?) Safcom has managed to get 78% market share in the data market. So they are for all purposes and intent a monopoly in that space. Monopolies by nature tend to be dictate alot of things - including how to make more money within the shortest time and using the lowest effort (squeezed resources). Capitalist call this efficiency, but Users reflect it as poor quality :-)
Monopolies as you know are a hard nut to crack (ask Microsoft, Google, AT&T and others). With all due respect, I highly doubt that CCK can crack Safaricom in its own..it might have to explore legal avenues available in the Competition laws. Sponsor one Mutoro, Omutatah et. al. to fundamentally break up the giant that Safaricom has become.
And I say this with a heavy heart since I am both a (not-so-big) Safaricom shareholder and 12year old subscriber/customer and I have no clue what or how such a break-up would play out. Choices have consequences....
walu.
________________________________ From: Edith Adera <eadera@idrc.ca<mailto:eadera@idrc.ca>> To: jwalu@yahoo.com<mailto:jwalu@yahoo.com> Cc: Consumer and Public Affairs <CPA@cck.go.ke<mailto:CPA@cck.go.ke>>; KICTAnet ICT Policy Discussions <kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke>> Sent: Tuesday, July 30, 2013 11:28 AM Subject: Re: [kictanet] CCK to renew Safaricom's licence
Wambua,
This is a very “generic” response!
Am I right in reading from your email that NOTHING much is done for poor QoS until licenses are up for renewal? What SPECIFIC actions have been taken to-date? When should we expect better QoS before June 2014?
OR are we dealing with a case of “regulatory capture”?
Edith
From: Wambua, Christopher [mailto:Wambua@cck.go.ke]<mailto:[mailto:Wambua@cck.go.ke]> Sent: July 29, 2013 5:39 PM To: Edith Adera Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: RE: [kictanet] CCK to renew Safaricom's licence Importance: High
Edith/Listers
One of the responsibilities of CCK is to protect the interests of consumers, including against poor quality of service. To this end, CCK independently monitors the QoS on annual basis to determine whether licensees meet the minimum set parameters or standards. Each year, we publish the performance of the four mobile operators in respect to QoS to empower consumers make informed choices in the market. We also levy penalties on non-compliant licensees (i.e. those that do not meet the set standards). The penalties stipulated in the Kenya Information and Communications Act, CAP 411A of Kshs500,000, are however too low and do not serve as an adequate deterrent. To address this, the penalties have been enhanced in the proposed Kenya Information and Communications (Amendment) Bill. CCK is also enhancing its monitoring capabilities to be able to process and publish the performance results more frequently for public information and as a way of encouraging service providers to provide quality services.
The monitoring results also assist licensees to identify areas of non-compliance for purposes of improvement. Arising from our concern over QoS performance, CCK has requested non-compliant licensees to submit action plans on how they intend to improve on QoS.
Let me also add that QoS is a major consideration in the renewal of licences for the mobile operators and other service providers. The renewal of the Safaricom licence is due in June 2014. CCK is looking forward to enhancing the licence conditions in respect to QoS to make ensure that consumers get value for their money.
Best regards,
Christopher Wambua Manager – Communications Consumer and Public Affairs Department Communications Commission of Kenya P.O. Box 14448 NAIROBI 00800 Tel: +254 20 4242209 info@cck.go.ke<mailto:info@cck.go.ke> www.cck.go.ke<http://www.cck.go.ke/>
From: Edith Adera [mailto:eadera@idrc.ca]<mailto:[mailto:eadera@idrc.ca]> Sent: Monday, July 29, 2013 4:43 PM To: Wambua, Christopher Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: RE: [kictanet] CCK to renew Safaricom's licence
Dear Wambua,
Thanks for bringing this issue to our attention. Actually, 2 weeks ago an email I had composed for the list got deleted before I could deliver it…then I got swamped!
The email was about the “poor quality of service” from Safaricom – too many dropped calls, uncompleted calls, undelivered sms”, hanging sms” etc. and asking the BIG QUESTION: “WHAT IS CCK DOING ABOUT THIS UNACCEPTABLY LOW QUALITY OF SERVICE?”
I see you have suggested that renewal of license is subject to “ …..meeting set minimum quality of service standards by June 2014.”
Why by June 2014?
We want good service NOW!
Can CCK address this now and get back to us telling us what will be done now and NOT June 2014?
Concerned Edith
From: kictanet [mailto:kictanet-bounces+eadera=idrc.ca@lists.kictanet.or.ke]<mailto:[mailto:kictanet-bounces+eadera=idrc.ca@lists.kictanet.or.ke]> On Behalf Of Wambua, Christopher Sent: July 26, 2013 4:48 PM To: Edith Adera Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: [kictanet] CCK to renew Safaricom's licence Importance: High
Listers,
CCK to renew Safaricom’s licence
Kenya’s largest mobile operator – Safaricom – will pay Kshs2.36billion (US$27million) for renewal of its operating licence for a further term of 10 years.
CCK today announced that the renewal of Safaricom’s licence would depend on the operator paying the renewal fee upfront and meeting the set minimum quality of service standards by June 2014. Safaricom’s initial licence term of 15 years is set to expire on 30th June 2014 but has a provision for a possible renewal for a further term of 10 years.
Addressing the media at the CCK offices, CCK Director General Mr. Francis Wangusi said the renewed Safaricom licence would come with a set of new licence terms and conditions negotiated between the regulator and the mobile operator.
The licence renewal fee of US$27 million is based on the bid price offered for the third GSM mobile licence by the latest entrant to the mobile telecoms market in Kenya -Econet Wireless Kenya Ltd (now Essar Telecom Kenya Ltd).
The Director General said that whereas Safaricom has significantly contributed to the economy, developed innovative products and services and met most its licence obligations, the mobile operator needs to up its game in regard to meeting the set quality of service standards.
‘‘We have considered the fact that whereas Safaricom has met most of its licence obligations, its continued failure to meet the set Quality of Service standards remains a concern that needs to be addressed,’’ said Mr. Wangusi.
Mr. Wangusi further said the three other mobile operators would pay the same amount for renewal of their licences for a further term of 10 year to ensure parity and a level playing ground for all service providers in the sector.
At the sametime, the Director General said the spectrum assigned to the four mobile operators will be subjected to an auction after the expiry of the 10-year renewal term. , The full statement of the Director General is available on the CCK website at http://www.cck.go.ke/news/speeches/2013/Press_statement__Safaricom_licence.p...
Wambua
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Walu, Edith, Just to quote my lecturer in the subject of regulation. He said. "There is no career in Regulation.If you are a good Regulator,you will,sooner than later,loose your job because,at any one time, at least one party will be unhappy with your decision and will fight you tooth and nail,whatever they say to the contrary" That unfortunately is the fate of those in that field. John Kariuki ________________________________ From: Edith Adera <eadera@idrc.ca> To: ngethe.kariuki2007@yahoo.co.uk Cc: Consumer and Public Affairs <CPA@cck.go.ke>; KICTAnet ICT Policy Discussions <kictanet@lists.kictanet.or.ke> Sent: Tuesday, 30 July 2013, 14:44 Subject: Re: [kictanet] CCK to renew Safaricom's licence Walu, Well presented! We should be worried, VERY worried, when the “referee” begins to fear the “player”!! Poor QoS is acknowledged, but NO tangible action! I feel that CCK is “skirting around the problem”!! Edith From:Walubengo J [mailto:jwalu@yahoo.com] Sent: July 30, 2013 2:37 PM To: Edith Adera Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: Re: [kictanet] CCK to renew Safaricom's licence @Edith, I am not a regulator and neither do I intend to shield Wambua/CCK from your question. But I can tell you one way to deal with poor service is to provide competition which I believe CCK has done very well. (Un?)Fortunately through sheer hard work (or otherwise?) Safcom has managed to get 78% market share in the data market. So they are for all purposes and intent a monopoly in that space. Monopolies by nature tend to be dictate alot of things - including how to make more money within the shortest time and using the lowest effort (squeezed resources). Capitalist call this efficiency, but Users reflect it as poor quality :-) Monopolies as you know are a hard nut to crack (ask Microsoft, Google, AT&T and others). With all due respect, I highly doubt that CCK can crack Safaricom in its own..it might have to explore legal avenues available in the Competition laws. Sponsor one Mutoro, Omutatah et. al. to fundamentally break up the giant that Safaricom has become. And I say this with a heavy heart since I am both a (not-so-big) Safaricom shareholder and 12year old subscriber/customer and I have no clue what or how such a break-up would play out. Choices have consequences.... walu. ________________________________ From:Edith Adera <eadera@idrc.ca> To: jwalu@yahoo.com Cc: Consumer and Public Affairs <CPA@cck.go.ke>; KICTAnet ICT Policy Discussions <kictanet@lists.kictanet.or.ke> Sent: Tuesday, July 30, 2013 11:28 AM Subject: Re: [kictanet] CCK to renew Safaricom's licence Wambua, This is a very “generic” response! Am I right in reading from your email that NOTHING much is done for poor QoS until licenses are up for renewal? What SPECIFIC actions have been taken to-date? When should we expect better QoS before June 2014? OR are we dealing with a case of “regulatory capture”? Edith From:Wambua, Christopher [mailto:Wambua@cck.go.ke] Sent: July 29, 2013 5:39 PM To: Edith Adera Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: RE: [kictanet] CCK to renew Safaricom's licence Importance: High Edith/Listers One of the responsibilities of CCK is to protect the interests of consumers, including against poor quality of service. To this end, CCK independently monitors the QoS on annual basis to determine whether licensees meet the minimum set parameters or standards. Each year, we publish the performance of the four mobile operators in respect to QoS to empower consumers make informed choices in the market. We also levy penalties on non-compliant licensees (i.e. those that do not meet the set standards). The penalties stipulated in the Kenya Information and Communications Act, CAP 411A of Kshs500,000, are however too low and do not serve as an adequate deterrent. To address this, the penalties have been enhanced in the proposed Kenya Information and Communications (Amendment) Bill. CCK is also enhancing its monitoring capabilities to be able to process and publish the performance results more frequently for public information and as a way of encouraging service providers to provide quality services. The monitoring results also assist licensees to identify areas of non-compliance for purposes of improvement. Arising from our concern over QoS performance, CCK has requested non-compliant licensees to submit action plans on how they intend to improve on QoS. Let me also add that QoS is a major consideration in the renewal of licences for the mobile operators and other service providers. The renewal of the Safaricom licence is due in June 2014. CCK is looking forward to enhancing the licence conditions in respect to QoS to make ensure that consumers get value for their money. Best regards, Christopher Wambua Manager – Communications Consumer and Public Affairs Department Communications Commission of Kenya P.O. Box 14448 NAIROBI 00800 Tel: +254 20 4242209 info@cck.go.ke www.cck.go.ke From:Edith Adera [mailto:eadera@idrc.ca] Sent: Monday, July 29, 2013 4:43 PM To: Wambua, Christopher Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: RE: [kictanet] CCK to renew Safaricom's licence Dear Wambua, Thanks for bringing this issue to our attention. Actually, 2 weeks ago an email I had composed for the list got deleted before I could deliver it…then I got swamped! The email was about the “poor quality of service” from Safaricom – too many dropped calls, uncompleted calls, undelivered sms”, hanging sms” etc. and asking the BIG QUESTION: “WHAT IS CCK DOING ABOUT THIS UNACCEPTABLY LOW QUALITY OF SERVICE?” I see you have suggested that renewal of license is subject to “ …..meeting set minimum quality of service standards by June 2014.” Why by June 2014? We want good service NOW! Can CCK address this now and get back to us telling us what will be done now and NOT June 2014? Concerned Edith From:kictanet [mailto:kictanet-bounces+eadera=idrc.ca@lists.kictanet.or.ke] On Behalf Of Wambua, Christopher Sent: July 26, 2013 4:48 PM To: Edith Adera Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: [kictanet] CCK to renew Safaricom's licence Importance: High Listers, CCK to renew Safaricom’s licence Kenya’s largest mobile operator – Safaricom – will pay Kshs2.36billion (US$27million) for renewal of its operating licence for a further term of 10 years. CCK today announced that the renewal of Safaricom’s licence would depend on the operator paying the renewal fee upfront and meeting the set minimum quality of service standards by June 2014. Safaricom’s initial licence term of 15 years is set to expire on 30th June 2014 but has a provision for a possible renewal for a further term of 10 years. Addressing the media at the CCK offices, CCK Director General Mr. Francis Wangusi said the renewed Safaricom licence would come with a set of new licence terms and conditions negotiated between the regulator and the mobile operator. The licence renewal fee of US$27 million is based on the bid price offered for the third GSM mobile licence by the latest entrant to the mobile telecoms market in Kenya -Econet Wireless Kenya Ltd (now Essar Telecom Kenya Ltd). The Director General said that whereas Safaricom has significantly contributed to the economy, developed innovative products and services and met most its licence obligations, the mobile operator needs to up its game in regard to meeting the set quality of service standards. ‘‘We have considered the fact that whereas Safaricom has met most of its licence obligations, its continued failure to meet the set Quality of Service standards remains a concern that needs to be addressed,’’ said Mr. Wangusi. Mr. Wangusi further said the three other mobile operators would pay the same amount for renewal of their licences for a further term of 10 year to ensure parity and a level playing ground for all service providers in the sector. At the sametime, the Director General said the spectrum assigned to the four mobile operators will be subjected to an auction after the expiry of the 10-year renewal term. , The full statement of the Director General is available on the CCK website at http://www.cck.go.ke/news/speeches/2013/Press_statement__Safaricom_licence.p... Wambua _______________________________________________ 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. _______________________________________________ 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/ngethe.kariuki2007%40y... 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.
Edith, I think you are not fair in your assessment. Measuring QoS and levying penalties for non - compliance as stipulated in the law and respective operators licences does not constitute not taking tangible action or fearing a licensee. The fact that we are seeking to enhance the penalties for non - compliance in the law demonstrates a commitment to address the problem. Finally, we also need to appreciate that consumers have a responsibility to take advantage of prevailing competition in the market that CCK has facilitated. Wambua Sent from my BlackBerry 10 smartphone. From: Edith Adera Sent: Tuesday, 30 July 2013 14:49 PM To: Wambua, Christopher Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: Re: [kictanet] CCK to renew Safaricom's licence Walu, Well presented! We should be worried, VERY worried, when the “referee” begins to fear the “player”!! Poor QoS is acknowledged, but NO tangible action! I feel that CCK is “skirting around the problem”!! Edith From: Walubengo J [mailto:jwalu@yahoo.com] Sent: July 30, 2013 2:37 PM To: Edith Adera Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: Re: [kictanet] CCK to renew Safaricom's licence @Edith, I am not a regulator and neither do I intend to shield Wambua/CCK from your question. But I can tell you one way to deal with poor service is to provide competition which I believe CCK has done very well. (Un?)Fortunately through sheer hard work (or otherwise?) Safcom has managed to get 78% market share in the data market. So they are for all purposes and intent a monopoly in that space. Monopolies by nature tend to be dictate alot of things - including how to make more money within the shortest time and using the lowest effort (squeezed resources). Capitalist call this efficiency, but Users reflect it as poor quality :-) Monopolies as you know are a hard nut to crack (ask Microsoft, Google, AT&T and others). With all due respect, I highly doubt that CCK can crack Safaricom in its own..it might have to explore legal avenues available in the Competition laws. Sponsor one Mutoro, Omutatah et. al. to fundamentally break up the giant that Safaricom has become. And I say this with a heavy heart since I am both a (not-so-big) Safaricom shareholder and 12year old subscriber/customer and I have no clue what or how such a break-up would play out. Choices have consequences.... walu. ________________________________ From: Edith Adera <eadera@idrc.ca<mailto:eadera@idrc.ca>> To: jwalu@yahoo.com<mailto:jwalu@yahoo.com> Cc: Consumer and Public Affairs <CPA@cck.go.ke<mailto:CPA@cck.go.ke>>; KICTAnet ICT Policy Discussions <kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke>> Sent: Tuesday, July 30, 2013 11:28 AM Subject: Re: [kictanet] CCK to renew Safaricom's licence Wambua, This is a very “generic” response! Am I right in reading from your email that NOTHING much is done for poor QoS until licenses are up for renewal? What SPECIFIC actions have been taken to-date? When should we expect better QoS before June 2014? OR are we dealing with a case of “regulatory capture”? Edith From: Wambua, Christopher [mailto:Wambua@cck.go.ke]<mailto:[mailto:Wambua@cck.go.ke]> Sent: July 29, 2013 5:39 PM To: Edith Adera Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: RE: [kictanet] CCK to renew Safaricom's licence Importance: High Edith/Listers One of the responsibilities of CCK is to protect the interests of consumers, including against poor quality of service. To this end, CCK independently monitors the QoS on annual basis to determine whether licensees meet the minimum set parameters or standards. Each year, we publish the performance of the four mobile operators in respect to QoS to empower consumers make informed choices in the market. We also levy penalties on non-compliant licensees (i.e. those that do not meet the set standards). The penalties stipulated in the Kenya Information and Communications Act, CAP 411A of Kshs500,000, are however too low and do not serve as an adequate deterrent. To address this, the penalties have been enhanced in the proposed Kenya Information and Communications (Amendment) Bill. CCK is also enhancing its monitoring capabilities to be able to process and publish the performance results more frequently for public information and as a way of encouraging service providers to provide quality services. The monitoring results also assist licensees to identify areas of non-compliance for purposes of improvement. Arising from our concern over QoS performance, CCK has requested non-compliant licensees to submit action plans on how they intend to improve on QoS. Let me also add that QoS is a major consideration in the renewal of licences for the mobile operators and other service providers. The renewal of the Safaricom licence is due in June 2014. CCK is looking forward to enhancing the licence conditions in respect to QoS to make ensure that consumers get value for their money. Best regards, Christopher Wambua Manager – Communications Consumer and Public Affairs Department Communications Commission of Kenya P.O. Box 14448 NAIROBI 00800 Tel: +254 20 4242209 info@cck.go.ke<mailto:info@cck.go.ke> www.cck.go.ke<http://www.cck.go.ke/> From: Edith Adera [mailto:eadera@idrc.ca]<mailto:[mailto:eadera@idrc.ca]> Sent: Monday, July 29, 2013 4:43 PM To: Wambua, Christopher Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: RE: [kictanet] CCK to renew Safaricom's licence Dear Wambua, Thanks for bringing this issue to our attention. Actually, 2 weeks ago an email I had composed for the list got deleted before I could deliver it…then I got swamped! The email was about the “poor quality of service” from Safaricom – too many dropped calls, uncompleted calls, undelivered sms”, hanging sms” etc. and asking the BIG QUESTION: “WHAT IS CCK DOING ABOUT THIS UNACCEPTABLY LOW QUALITY OF SERVICE?” I see you have suggested that renewal of license is subject to “ …..meeting set minimum quality of service standards by June 2014.” Why by June 2014? We want good service NOW! Can CCK address this now and get back to us telling us what will be done now and NOT June 2014? Concerned Edith From: kictanet [mailto:kictanet-bounces+eadera=idrc.ca@lists.kictanet.or.ke]<mailto:[mailto:kictanet-bounces+eadera=idrc.ca@lists.kictanet.or.ke]> On Behalf Of Wambua, Christopher Sent: July 26, 2013 4:48 PM To: Edith Adera Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: [kictanet] CCK to renew Safaricom's licence Importance: High Listers, CCK to renew Safaricom’s licence Kenya’s largest mobile operator – Safaricom – will pay Kshs2.36billion (US$27million) for renewal of its operating licence for a further term of 10 years. CCK today announced that the renewal of Safaricom’s licence would depend on the operator paying the renewal fee upfront and meeting the set minimum quality of service standards by June 2014. Safaricom’s initial licence term of 15 years is set to expire on 30th June 2014 but has a provision for a possible renewal for a further term of 10 years. Addressing the media at the CCK offices, CCK Director General Mr. Francis Wangusi said the renewed Safaricom licence would come with a set of new licence terms and conditions negotiated between the regulator and the mobile operator. The licence renewal fee of US$27 million is based on the bid price offered for the third GSM mobile licence by the latest entrant to the mobile telecoms market in Kenya -Econet Wireless Kenya Ltd (now Essar Telecom Kenya Ltd). The Director General said that whereas Safaricom has significantly contributed to the economy, developed innovative products and services and met most its licence obligations, the mobile operator needs to up its game in regard to meeting the set quality of service standards. ‘‘We have considered the fact that whereas Safaricom has met most of its licence obligations, its continued failure to meet the set Quality of Service standards remains a concern that needs to be addressed,’’ said Mr. Wangusi. Mr. Wangusi further said the three other mobile operators would pay the same amount for renewal of their licences for a further term of 10 year to ensure parity and a level playing ground for all service providers in the sector. At the sametime, the Director General said the spectrum assigned to the four mobile operators will be subjected to an auction after the expiry of the 10-year renewal term. , The full statement of the Director General is available on the CCK website at http://www.cck.go.ke/news/speeches/2013/Press_statement__Safaricom_licence.p... Wambua _______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke<mailto: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.
@Walu What do you call a Monopoly created not by the Government (ala Kenya Power, KPTC, KPA etc) but by the market/consumer through sheer innovation and good leadership? Hauling these in court and trying to break them up misses the point. What the market and consumer can give, it can take away (in a Nairobi minute!). The US Government in the early part of the century broke up Standard Oil because at one point it was supplying 90% of kerosene to households across the US (Yes, there was a time that electricity was not ubiquitous and kerosene was the energy source to light up homes). The government broke it up. But electricity rendered the monopoly irrelevant. The same can be said for Microsoft, Apple, Google, Facebook etc. the market is not perfect but it is more efficient than the Government - any day. Oh by the way..almost a century later, the different parts of Standard Oil (more than 20 pieces of it) have morphed back again into one - Today we know the company as ExxonMobil. But it is far from a monopoly. For those of you who are interested you can read/watch about this in the series called 'The men who built America'. Just Google it. As for Safaricom. They continue to innovate and ignore their customers at the same time. A paradox really because with all their innovations they are forgetting another important innovation area - their operations. I suspect there is another Pesky Start Up waiting to eat their lunch and the best we can do is not to put ideas into the regulator's mind that they can overstep their mandate.. Their's is not to break up monopolies but to provide a level playing field and let Wanjiku decide where to put her Shilingis. My two cowries Ali Hussein CEO | 3mice interactive media Ltd Principal | Telemedia Africa Ltd +254 713 601113/ 0770 906375 "The future belongs to him who knows how to wait." - Russian Proverb Sent from my iPad On Jul 30, 2013, at 9:25 PM, "Wambua, Christopher" <Wambua@cck.go.ke> wrote:
Edith,
I think you are not fair in your assessment. Measuring QoS and levying penalties for non - compliance as stipulated in the law and respective operators licences does not constitute not taking tangible action or fearing a licensee.
The fact that we are seeking to enhance the penalties for non - compliance in the law demonstrates a commitment to address the problem.
Finally, we also need to appreciate that consumers have a responsibility to take advantage of prevailing competition in the market that CCK has facilitated.
Wambua Sent from my BlackBerry 10 smartphone.
From: Edith Adera Sent: Tuesday, 30 July 2013 14:49 PM To: Wambua, Christopher Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: Re: [kictanet] CCK to renew Safaricom's licence
Walu,
Well presented!
We should be worried, VERY worried, when the “referee” begins to fear the “player”!!
Poor QoS is acknowledged, but NO tangible action!
I feel that CCK is “skirting around the problem”!!
Edith
From: Walubengo J [mailto:jwalu@yahoo.com] Sent: July 30, 2013 2:37 PM To: Edith Adera Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: Re: [kictanet] CCK to renew Safaricom's licence
@Edith,
I am not a regulator and neither do I intend to shield Wambua/CCK from your question. But I can tell you one way to deal with poor service is to provide competition which I believe CCK has done very well.
(Un?)Fortunately through sheer hard work (or otherwise?) Safcom has managed to get 78% market share in the data market. So they are for all purposes and intent a monopoly in that space. Monopolies by nature tend to be dictate alot of things - including how to make more money within the shortest time a
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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
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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.
@Ali, I hear you. Most people agree that Safcom got where they are through sheer hard work and determination and they continue to innovate almost on a daily basis. But from a Regulatory point of view, a monopoly is rarely a good thing in a free market economy - and economists have designed mechanism to break down monopolies. I think the currently being amended Kenyan Communication Act had provision on what to do with a "dominant" player - where dominant is the technical term for a player whose market power in a competitive market is such that the competition in the market is only on paper. The idea of breaking up Safaricom is not so much to split it up into multiple smaller companies i.e. the AT&T way. My thinking is that something needs to be done around their Killer data application MPESA. MPESA product needs to be commoditized - in other words, Safcom should be made to consider it a shared platform where other Operators can buy access/rights of use on this platform. In other words, we need to "unbundle" MPESA and inject a new lease of innovation that is not limited within Safaricom, but can also be initiated by other Operators who through regulation have been enabled to sell services through MPESA. Would this be punishing Safaricom for being successfull? I dont think so, in fact we shall be opening up a whole new phase of competition since as at now- competition is dead within the data market. And Safaricom being the innovative company it is, it will be just another 5years and they will have discovered something else to keep them ahead of competition. And after 10years, the regulator should come in and do the "unbundling" magic again. That is what I meant with regards to breaking up Safcom. walu. ________________________________ From: Ali Hussein <ali@hussein.me.ke> To: jwalu@yahoo.com Cc: Consumer and Public Affairs <CPA@cck.go.ke>; KICTAnet ICT Policy Discussions <kictanet@lists.kictanet.or.ke> Sent: Wednesday, July 31, 2013 3:32 AM Subject: Re: [kictanet] CCK to renew Safaricom's licence @Walu What do you call a Monopoly created not by the Government (ala Kenya Power, KPTC, KPA etc) but by the market/consumer through sheer innovation and good leadership? Hauling these in court and trying to break them up misses the point. What the market and consumer can give, it can take away (in a Nairobi minute!). The US Government in the early part of the century broke up Standard Oil because at one point it was supplying 90% of kerosene to households across the US (Yes, there was a time that electricity was not ubiquitous and kerosene was the energy source to light up homes). The government broke it up. But electricity rendered the monopoly irrelevant. The same can be said for Microsoft, Apple, Google, Facebook etc. the market is not perfect but it is more efficient than the Government - any day. Oh by the way..almost a century later, the different parts of Standard Oil (more than 20 pieces of it) have morphed back again into one - Today we know the company as ExxonMobil. But it is far from a monopoly. For those of you who are interested you can read/watch about this in the series called 'The men who built America'. Just Google it. As for Safaricom. They continue to innovate and ignore their customers at the same time. A paradox really because with all their innovations they are forgetting another important innovation area - their operations. I suspect there is another Pesky Start Up waiting to eat their lunch and the best we can do is not to put ideas into the regulator's mind that they can overstep their mandate.. Their's is not to break up monopolies but to provide a level playing field and let Wanjiku decide where to put her Shilingis. My two cowries Ali Hussein CEO | 3mice interactive media Ltd Principal | Telemedia Africa Ltd +254 713 601113/ 0770 906375 "The future belongs to him who knows how to wait." - Russian Proverb Sent from my iPad On Jul 30, 2013, at 9:25 PM, "Wambua, Christopher" <Wambua@cck.go.ke> wrote: Edith,
I think you are not fair in your assessment. Measuring QoS and levying penalties for non - compliance as stipulated in the law and respective operators licences does not constitute not taking tangible action or fearing a licensee.
The fact that we are seeking to enhance the penalties for non - compliance in the law demonstrates a commitment to address the problem.
Finally, we also need to appreciate that consumers have a responsibility to take advantage of prevailing competition in the market that CCK has facilitated.
Wambua Sent from my BlackBerry 10 smartphone. From: Edith Adera Sent: Tuesday, 30 July 2013 14:49 PM To: Wambua, Christopher Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: Re: [kictanet] CCK to renew Safaricom's licence
Walu, Well presented! We should be worried, VERY worried, when the “referee” begins to fear the “player”!! Poor QoS is acknowledged, but NO tangible action! I feel that CCK is “skirting around the problem”!! Edith From:Walubengo J [mailto:jwalu@yahoo.com] Sent: July 30, 2013 2:37 PM To: Edith Adera Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: Re: [kictanet] CCK to renew Safaricom's licence @Edith,
I am not a regulator and neither do I intend to shield Wambua/CCK from your question. But I can tell you one way to deal with poor service is to provide competition which I believe CCK has done very well.
(Un?)Fortunately through sheer hard work (or otherwise?) Safcom has managed to get 78% market share in the data market. So they are for all purposes and intent a monopoly in that space. Monopolies by nature tend to be dictate alot of things - including how
to make more money within the shortest time a _______________________________________________
kictanet mailing list kictanet@lists.kictanet.or.ke https://lists.kictanet.or.ke/mailman/listinfo/kictanet
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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.
kictanet mailing list kictanet@lists.kictanet.or.ke https://lists.kictanet.or.ke/mailman/listinfo/kictanet
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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.
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.
@Walu I fundamentally disagree with your argument about whether Safaricom is a monopoly or not and how to deal with it. Dominant player? YES. FOR SURE. How long will this last? Your guess is as good as mine. Me thinks not much longer if the arrogance displayed by Safaricom continues. You know what they say - hubris always invariably comes before a fall. We just need to give the market time to correct this. Government has no business interfering with Intellectual Property and that is what you are suggesting by asking it to 'unbundle' MPESA. By the way FYI the Mpesa system from a purely IT Architecture isn't all that..in fact I will go to the extent of daring to say that that space has already been commoditized. If you want to break the monopoly/Dominance of Mpesa look at breaking the Network Effect. And this won't be done by government but the market. http://en.wikipedia.org/wiki/Network_effect Infact Google and Equity are already trying that with their BebaPay service. www.bebapay.co.ke Others players are trying their luck. Time and the market will sort this out. Of course a dash of Regulation is needed. And here CCK is doing the right thing by playing it lightly.. www.bebapay.co.ke Ali Hussein CEO | 3mice interactive media Ltd Principal | Telemedia Africa Ltd +254 713 601113/ 0770 906375 "The future belongs to him who knows how to wait." - Russian Proverb Sent from my iPad On Jul 31, 2013, at 10:24 AM, Walubengo J <jwalu@yahoo.com> wrote:
@Ali,
I hear you. Most people agree that Safcom got where they are through sheer hard work and determination and they continue to innovate almost on a daily basis. But from a Regulatory point of view, a monopoly is rarely a good thing in a free market economy - and economists have designed mechanism to break down monopolies. I think the currently being amended Kenyan Communication Act had provision on what to do with a "dominant" player - where dominant is the technical term for a player whose market power in a competitive market is such that the competition in the market is only on paper.
The idea of breaking up Safaricom is not so much to split it up into multiple smaller companies i.e. the AT&T way. My thinking is that something needs to be done around their Killer data application MPESA. MPESA product needs to be commoditized - in other words, Safcom should be made to consider it a shared platform where other Operators can buy access/rights of use on this platform.
In other words, we need to "unbundle" MPESA and inject a new lease of innovation that is not limited within Safaricom, but can also be initiated by other Operators who through regulation have been enabled to sell services through MPESA.
Would this be punishing Safaricom for being successfull? I dont think so, in fact we shall be opening up a whole new phase of competition since as at now- competition is dead within the data market. And Safaricom being the innovative company it is, it will be just another 5years and they will have discovered something else to keep them ahead of competition. And after 10years, the regulator should come in and do the "unbundling" magic again.
That is what I meant with regards to breaking up Safcom.
walu.
From: Ali Hussein <ali@hussein.me.ke> To: jwalu@yahoo.com Cc: Consumer and Public Affairs <CPA@cck.go.ke>; KICTAnet ICT Policy Discussions <kictanet@lists.kictanet.or.ke> Sent: Wednesday, July 31, 2013 3:32 AM Subject: Re: [kictanet] CCK to renew Safaricom's licence
@Walu
What do you call a Monopoly created not by the Government (ala Kenya Power, KPTC, KPA etc) but by the market/consumer through sheer innovation and good leadership?
Hauling these in court and trying to break them up misses the point. What the market and consumer can give, it can take away (in a Nairobi minute!). The US Government in the early part of the century broke up Standard Oil because at one point it was supplying 90% of kerosene to households across the US (Yes, there was a time that electricity was not ubiquitous and kerosene was the energy source to light up homes). The government broke it up. But electricity rendered the monopoly irrelevant. The same can be said for Microsoft, Apple, Google, Facebook etc. the market is not perfect but it is more efficient than the Government - any day.
Oh by the way..almost a century later, the different parts of Standard Oil (more than 20 pieces of it) have morphed back again into one - Today we know the company as ExxonMobil. But it is far from a monopoly. For those of you who are interested you can read/watch about this in the series called 'The men who built America'. Just Google it.
As for Safaricom. They continue to innovate and ignore their customers at the same time. A paradox really because with all their innovations they are forgetting another important innovation area - their operations. I suspect there is another Pesky Start Up waiting to eat their lunch and the best we can do is not to put ideas into the regulator's mind that they can overstep their mandate.. Their's is not to break up monopolies but to provide a level playing field and let Wanjiku decide where to put her Shilingis.
My two cowries
Ali Hussein CEO | 3mice interactive media Ltd Principal | Telemedia Africa Ltd
+254 713 601113/ 0770 906375
"The future belongs to him who knows how to wait." - Russian Proverb
Sent from my iPad
On Jul 30, 2013, at 9:25 PM, "Wambua, Christopher" <Wambua@cck.go.ke> wrote:
Edith,
I think you are not fair in your assessment. Measuring QoS and levying penalties for non - compliance as stipulated in the law and respective operators licences does not constitute not taking tangible action or fearing a licensee.
The fact that we are seeking to enhance the penalties for non - compliance in the law demonstrates a commitment to address the problem.
Finally, we also need to appreciate that consumers have a responsibility to take advantage of prevailing competition in the market that CCK has facilitated.
Wambua Sent from my BlackBerry 10 smartphone. From: Edith Adera Sent: Tuesday, 30 July 2013 14:49 PM To: Wambua, Christopher Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: Re: [kictanet] CCK to renew Safaricom's licence
Walu,
Well presented!
We should be worried, VERY worried, when the “referee” begins to fear the “player”!!
Poor QoS is acknowledged, but NO tangible action!
I feel that CCK is “skirting around the problem”!!
Edith
From: Walubengo J [mailto:jwalu@yahoo.com] Sent: July 30, 2013 2:37 PM To: Edith Adera Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: Re: [kictanet] CCK to renew Safaricom's licence
@Edith,
I am not a regulator and neither do I intend to shield Wambua/CCK from your question. But I can tell you one way to deal with poor service is to provide competition which I believe CCK has done very well.
(Un?)Fortunately through sheer hard work (or otherwise?) Safcom has managed to get 78% market share in the data market. So they are for all purposes and intent a monopoly in that space. Monopolies by nature tend to be dictate alot of things - including how to make more money within the shortest time a _______________________________________________ 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/wambua%40cck.go.ke
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/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.
_______________________________________________ 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.
@Ali, and thinking like a pedestrian (they tell us that at the University), is it not that Kenyans have made safcom the dominant player? I was surprised that as late as last week, some two friends of mine were 'off air' for 3 days as they had ported their numbers to safcom. Reason? MPESA. RgdsG From: ali@hussein.me.ke Date: Wed, 31 Jul 2013 10:45:14 +0300 Subject: Re: [kictanet] CCK to renew Safaricom's licence CC: CPA@cck.go.ke; kictanet@lists.kictanet.or.ke To: ggithaiga@hotmail.com @Walu I fundamentally disagree with your argument about whether Safaricom is a monopoly or not and how to deal with it. Dominant player? YES. FOR SURE. How long will this last? Your guess is as good as mine. Me thinks not much longer if the arrogance displayed by Safaricom continues. You know what they say - hubris always invariably comes before a fall. We just need to give the market time to correct this. Government has no business interfering with Intellectual Property and that is what you are suggesting by asking it to 'unbundle' MPESA. By the way FYI the Mpesa system from a purely IT Architecture isn't all that..in fact I will go to the extent of daring to say that that space has already been commoditized. If you want to break the monopoly/Dominance of Mpesa look at breaking the Network Effect. And this won't be done by government but the market. http://en.wikipedia.org/wiki/Network_effect Infact Google and Equity are already trying that with their BebaPay service. www.bebapay.co.ke Others players are trying their luck. Time and the market will sort this out. Of course a dash of Regulation is needed. And here CCK is doing the right thing by playing it lightly.. www.bebapay.co.ke Ali HusseinCEO | 3mice interactive media LtdPrincipal | Telemedia Africa Ltd +254 713 601113/ 0770 906375 "The future belongs to him who knows how to wait." - Russian Proverb Sent from my iPad On Jul 31, 2013, at 10:24 AM, Walubengo J <jwalu@yahoo.com> wrote: @Ali, I hear you. Most people agree that Safcom got where they are through sheer hard work and determination and they continue to innovate almost on a daily basis. But from a Regulatory point of view, a monopoly is rarely a good thing in a free market economy - and economists have designed mechanism to break down monopolies. I think the currently being amended Kenyan Communication Act had provision on what to do with a "dominant" player - where dominant is the technical term for a player whose market power in a competitive market is such that the competition in the market is only on paper. The idea of breaking up Safaricom is not so much to split it up into multiple smaller companies i.e. the AT&T way. My thinking is that something needs to be done around their Killer data application MPESA. MPESA product needs to be commoditized - in other words, Safcom should be made to consider it a shared platform where other Operators can buy access/rights of use on this platform. In other words, we need to "unbundle" MPESA and inject a new lease of innovation that is not limited within Safaricom, but can also be initiated by other Operators who through regulation have been enabled to sell services through MPESA. Would this be punishing Safaricom for being successfull? I dont think so, in fact we shall be opening up a whole new phase of competition since as at now- competition is dead within the data market. And Safaricom being the innovative company it is, it will be just another 5years and they will have discovered something else to keep them ahead of competition. And after 10years, the regulator should come in and do the "unbundling" magic again. That is what I meant with regards to breaking up Safcom. walu. From: Ali Hussein <ali@hussein.me.ke> To: jwalu@yahoo.com Cc: Consumer and Public Affairs <CPA@cck.go.ke>; KICTAnet ICT Policy Discussions <kictanet@lists.kictanet.or.ke> Sent: Wednesday, July 31, 2013 3:32 AM Subject: Re: [kictanet] CCK to renew Safaricom's licence @Walu What do you call a Monopoly created not by the Government (ala Kenya Power, KPTC, KPA etc) but by the market/consumer through sheer innovation and good leadership? Hauling these in court and trying to break them up misses the point. What the market and consumer can give, it can take away (in a Nairobi minute!). The US Government in the early part of the century broke up Standard Oil because at one point it was supplying 90% of kerosene to households across the US (Yes, there was a time that electricity was not ubiquitous and kerosene was the energy source to light up homes). The government broke it up. But electricity rendered the monopoly irrelevant. The same can be said for Microsoft, Apple, Google, Facebook etc. the market is not perfect but it is more efficient than the Government - any day. Oh by the way..almost a century later, the different parts of Standard Oil (more than 20 pieces of it) have morphed back again into one - Today we know the company as ExxonMobil. But it is far from a monopoly. For those of you who are interested you can read/watch about this in the series called 'The men who built America'. Just Google it. As for Safaricom. They continue to innovate and ignore their customers at the same time. A paradox really because with all their innovations they are forgetting another important innovation area - their operations. I suspect there is another Pesky Start Up waiting to eat their lunch and the best we can do is not to put ideas into the regulator's mind that they can overstep their mandate.. Their's is not to break up monopolies but to provide a level playing field and let Wanjiku decide where to put her Shilingis. My two cowries Ali HusseinCEO | 3mice interactive media LtdPrincipal | Telemedia Africa Ltd +254 713 601113/ 0770 906375 "The future belongs to him who knows how to wait." - Russian Proverb Sent from my iPad On Jul 30, 2013, at 9:25 PM, "Wambua, Christopher" <Wambua@cck.go.ke> wrote: Edith, I think you are not fair in your assessment. Measuring QoS and levying penalties for non - compliance as stipulated in the law and respective operators licences does not constitute not taking tangible action or fearing a licensee. The fact that we are seeking to enhance the penalties for non - compliance in the law demonstrates a commitment to address the problem. Finally, we also need to appreciate that consumers have a responsibility to take advantage of prevailing competition in the market that CCK has facilitated. Wambua Sent from my BlackBerry 10 smartphone. From: Edith Adera Sent: Tuesday, 30 July 2013 14:49 PM To: Wambua, Christopher Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: Re: [kictanet] CCK to renew Safaricom's licence Walu, Well presented! We should be worried, VERY worried, when the “referee” begins to fear the “player”!! Poor QoS is acknowledged, but NO tangible action! I feel that CCK is “skirting around the problem”!! Edith From: Walubengo J [mailto:jwalu@yahoo.com] Sent: July 30, 2013 2:37 PM To: Edith Adera Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: Re: [kictanet] CCK to renew Safaricom's licence @Edith, I am not a regulator and neither do I intend to shield Wambua/CCK from your question. But I can tell you one way to deal with poor service is to provide competition which I believe CCK has done very well. (Un?)Fortunately through sheer hard work (or otherwise?) Safcom has managed to get 78% market share in the data market. So they are for all purposes and intent a monopoly in that space. Monopolies by nature tend to be dictate alot of things - including how to make more money within the shortest time a_______________________________________________ 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/wambua%40cck.go.ke 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/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. _______________________________________________ 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. _______________________________________________ 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/ggithaiga%40hotmail.co... 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.
Exactly! That's the Network Effect. Ali Hussein CEO | 3mice interactive media Ltd Principal | Telemedia Africa Ltd +254 713 601113/ 0770 906375 "The future belongs to him who knows how to wait." - Russian Proverb Sent from my iPad On Jul 31, 2013, at 11:31 AM, Grace Githaiga <ggithaiga@hotmail.com> wrote:
@Ali, and thinking like a pedestrian (they tell us that at the University), is it not that Kenyans have made safcom the dominant player? I was surprised that as late as last week, some two friends of mine were 'off air' for 3 days as they had ported their numbers to safcom. Reason? MPESA. Rgds G
From: ali@hussein.me.ke Date: Wed, 31 Jul 2013 10:45:14 +0300 Subject: Re: [kictanet] CCK to renew Safaricom's licence CC: CPA@cck.go.ke; kictanet@lists.kictanet.or.ke To: ggithaiga@hotmail.com
@Walu
I fundamentally disagree with your argument about whether Safaricom is a monopoly or not and how to deal with it. Dominant player?
YES. FOR SURE.
How long will this last? Your guess is as good as mine. Me thinks not much longer if the arrogance displayed by Safaricom continues. You know what they say - hubris always invariably comes before a fall. We just need to give the market time to correct this.
Government has no business interfering with Intellectual Property and that is what you are suggesting by asking it to 'unbundle' MPESA. By the way FYI the Mpesa system from a purely IT Architecture isn't all that..in fact I will go to the extent of daring to say that that space has already been commoditized. If you want to break the monopoly/Dominance of Mpesa look at breaking the Network Effect. And this won't be done by government but the market.
http://en.wikipedia.org/wiki/Network_effect
Infact Google and Equity are already trying that with their BebaPay service.
www.bebapay.co.ke
Others players are trying their luck. Time and the market will sort this out. Of course a dash of Regulation is needed. And here CCK is doing the right thing by playing it lightly..
www.bebapay.co.ke
Ali Hussein CEO | 3mice interactive media Ltd Principal | Telemedia Africa Ltd
+254 713 601113/ 0770 906375
"The future belongs to him who knows how to wait." - Russian Proverb
Sent from my iPad
On Jul 31, 2013, at 10:24 AM, Walubengo J <jwalu@yahoo.com> wrote:
@Ali,
I hear you. Most people agree that Safcom got where they are through sheer hard work and determination and they continue to innovate almost on a daily basis. But from a Regulatory point of view, a monopoly is rarely a good thing in a free market economy - and economists have designed mechanism to break down monopolies. I think the currently being amended Kenyan Communication Act had provision on what to do with a "dominant" player - where dominant is the technical term for a player whose market power in a competitive market is such that the competition in the market is only on paper.
The idea of breaking up Safaricom is not so much to split it up into multiple smaller companies i.e. the AT&T way. My thinking is that something needs to be done around their Killer data application MPESA. MPESA product needs to be commoditized - in other words, Safcom should be made to consider it a shared platform where other Operators can buy access/rights of use on this platform.
In other words, we need to "unbundle" MPESA and inject a new lease of innovation that is not limited within Safaricom, but can also be initiated by other Operators who through regulation have been enabled to sell services through MPESA.
Would this be punishing Safaricom for being successfull? I dont think so, in fact we shall be opening up a whole new phase of competition since as at now- competition is dead within the data market. And Safaricom being the innovative company it is, it will be just another 5years and they will have discovered something else to keep them ahead of competition. And after 10years, the regulator should come in and do the "unbundling" magic again.
That is what I meant with regards to breaking up Safcom.
walu.
From: Ali Hussein <ali@hussein.me.ke> To: jwalu@yahoo.com Cc: Consumer and Public Affairs <CPA@cck.go.ke>; KICTAnet ICT Policy Discussions <kictanet@lists.kictanet.or.ke> Sent: Wednesday, July 31, 2013 3:32 AM Subject: Re: [kictanet] CCK to renew Safaricom's licence
@Walu
What do you call a Monopoly created not by the Government (ala Kenya Power, KPTC, KPA etc) but by the market/consumer through sheer innovation and good leadership?
Hauling these in court and trying to break them up misses the point. What the market and consumer can give, it can take away (in a Nairobi minute!). The US Government in the early part of the century broke up Standard Oil because at one point it was supplying 90% of kerosene to households across the US (Yes, there was a time that electricity was not ubiquitous and kerosene was the energy source to light up homes). The government broke it up. But electricity rendered the monopoly irrelevant. The same can be said for Microsoft, Apple, Google, Facebook etc. the market is not perfect but it is more efficient than the Government - any day.
Oh by the way..almost a century later, the different parts of Standard Oil (more than 20 pieces of it) have morphed back again into one - Today we know the company as ExxonMobil. But it is far from a monopoly. For those of you who are interested you can read/watch about this in the series called 'The men who built America'. Just Google it.
As for Safaricom. They continue to innovate and ignore their customers at the same time. A paradox really because with all their innovations they are forgetting another important innovation area - their operations. I suspect there is another Pesky Start Up waiting to eat their lunch and the best we can do is not to put ideas into the regulator's mind that they can overstep their mandate.. Their's is not to break up monopolies but to provide a level playing field and let Wanjiku decide where to put her Shilingis.
My two cowries
Ali Hussein CEO | 3mice interactive media Ltd Principal | Telemedia Africa Ltd
+254 713 601113/ 0770 906375
"The future belongs to him who knows how to wait." - Russian Proverb
Sent from my iPad
On Jul 30, 2013, at 9:25 PM, "Wambua, Christopher" <Wambua@cck.go.ke> wrote:
Edith,
I think you are not fair in your assessment. Measuring QoS and levying penalties for non - compliance as stipulated in the law and respective operators licences does not constitute not taking tangible action or fearing a licensee.
The fact that we are seeking to enhance the penalties for non - compliance in the law demonstrates a commitment to address the problem.
Finally, we also need to appreciate that consumers have a responsibility to take advantage of prevailing competition in the market that CCK has facilitated.
Wambua Sent from my BlackBerry 10 smartphone. From: Edith Adera Sent: Tuesday, 30 July 2013 14:49 PM To: Wambua, Christopher Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: Re: [kictanet] CCK to renew Safaricom's licence
Walu,
Well presented!
We should be worried, VERY worried, when the “referee” begins to fear the “player”!!
Poor QoS is acknowledged, but NO tangible action!
I feel that CCK is “skirting around the problem”!!
Edith
From: Walubengo J [mailto:jwalu@yahoo.com] Sent: July 30, 2013 2:37 PM To: Edith Adera Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: Re: [kictanet] CCK to renew Safaricom's licence
@Edith,
I am not a regulator and neither do I intend to shield Wambua/CCK from your question. But I can tell you one way to deal with poor service is to provide competition which I believe CCK has done very well.
(Un?)Fortunately through sheer hard work (or otherwise?) Safcom has managed to get 78% market share in the data market. So they are for all purposes and intent a monopoly in that space. Monopolies by nature tend to be dictate alot of things - including how to make more money within the shortest time a _______________________________________________ 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/wambua%40cck.go.ke
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
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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.
_______________________________________________ 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.
_______________________________________________ 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/ggithaiga%40hotmail.co... 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.
hi just to add on the discussion the idea of a level playing field is not a guarantee for equal outcomes considering that market players have an overall goal of making profits and hence hence create competion. having a level playing field and equal outcomes means that every market player receives the same benefits, regardless of there effort and willingness to take risk, on the other hand we can have a level playing field with different outcomes in these case the government (youth enterprise development funds, cdf's, ministry of science and technology, should help bring to the market the different innovations set up by Kenyans who have no ready funding to roll to the very competitive market. A very example of a government parastatal that once was a monopoly in the early 90's is the KCC which then became new KCC and then new KCC ltd. Since the liberalization of the daily industry, new market players have come in such as sameer,, brookside and many other. this has brought competition to the dairy market and hence new kcc no longer has the control in market share(controls only 20% as of last year 2012.) to compair the dairy industry and the communication industry i would say that it is only a matter of time that safaricom realizes the piotential of its competitors. the only thing that is lacking is that the same competitors are not risk takers as safaricom is. in this case i would say that ICT resources are liberalized and its up to the competitor to realize these. Regards Meshack ________________________________ From: Grace Githaiga <ggithaiga@hotmail.com> To: memakunat@yahoo.com Cc: Consumer and Public Affairs <cpa@cck.go.ke>; "kictanet@lists.kictanet.or.ke" <kictanet@lists.kictanet.or.ke> Sent: Wednesday, July 31, 2013 11:31 AM Subject: Re: [kictanet] CCK to renew Safaricom's licence @Ali, and thinking like a pedestrian (they tell us that at the University), is it not that Kenyans have made safcom the dominant player? I was surprised that as late as last week, some two friends of mine were 'off air' for 3 days as they had ported their numbers to safcom. Reason? MPESA. Rgds G ________________________________ From: ali@hussein.me.ke Date: Wed, 31 Jul 2013 10:45:14 +0300 Subject: Re: [kictanet] CCK to renew Safaricom's licence CC: CPA@cck.go.ke; kictanet@lists.kictanet.or.ke To: ggithaiga@hotmail.com @Walu I fundamentally disagree with your argument about whether Safaricom is a monopoly or not and how to deal with it. Dominant player? YES. FOR SURE. How long will this last? Your guess is as good as mine. Me thinks not much longer if the arrogance displayed by Safaricom continues. You know what they say - hubris always invariably comes before a fall. We just need to give the market time to correct this. Government has no business interfering with Intellectual Property and that is what you are suggesting by asking it to 'unbundle' MPESA. By the way FYI the Mpesa system from a purely IT Architecture isn't all that..in fact I will go to the extent of daring to say that that space has already been commoditized. If you want to break the monopoly/Dominance of Mpesa look at breaking the Network Effect. And this won't be done by government but the market. http://en.wikipedia.org/wiki/Network_effect Infact Google and Equity are already trying that with their BebaPay service. www.bebapay.co.ke Others players are trying their luck. Time and the market will sort this out. Of course a dash of Regulation is needed. And here CCK is doing the right thing by playing it lightly.. www.bebapay.co.ke Ali Hussein CEO | 3mice interactive media Ltd Principal | Telemedia Africa Ltd +254 713 601113/ 0770 906375 "The future belongs to him who knows how to wait." - Russian Proverb Sent from my iPad On Jul 31, 2013, at 10:24 AM, Walubengo J <jwalu@yahoo.com> wrote: @Ali,
I hear you. Most people agree that Safcom got where they are through sheer hard work and determination and they continue to innovate almost on a daily basis. But from a Regulatory point of view, a monopoly is rarely a good thing in a free market economy - and economists have designed mechanism to break down monopolies. I think the currently being amended Kenyan Communication Act had provision on what to do with a "dominant" player - where dominant is the technical term for a player whose market power in a competitive market is such that the competition in the market is only on paper.
The idea of breaking up Safaricom is not so much to split it up into multiple smaller companies i.e. the AT&T way. My thinking is that something needs to be done around their Killer data
application MPESA. MPESA product needs to be commoditized - in other words, Safcom should be made to consider it a shared platform where other Operators can buy access/rights of use on this platform.
In other words, we need to "unbundle" MPESA and inject a new lease of innovation that is not limited within Safaricom, but can also be initiated by other Operators who through regulation have been enabled to sell services through MPESA.
Would this be punishing Safaricom for being successfull? I dont think so, in fact we shall be opening up a whole new phase of competition since as at now- competition is dead within the data market. And Safaricom being the innovative company it is, it will be just another 5years and they will have discovered something else to keep them ahead of competition. And after 10years, the regulator should come in and do the "unbundling" magic again.
That is what I meant with regards to breaking up
Safcom.
walu.
________________________________ From: Ali Hussein <ali@hussein.me.ke> To: jwalu@yahoo.com Cc: Consumer and Public Affairs <CPA@cck.go.ke>; KICTAnet ICT Policy Discussions <kictanet@lists.kictanet.or.ke> Sent: Wednesday, July 31, 2013 3:32 AM Subject: Re: [kictanet] CCK to renew Safaricom's licence
@Walu
What do you call a Monopoly created not by the Government (ala Kenya Power, KPTC, KPA etc) but by the market/consumer through sheer innovation and good leadership?
Hauling these in court and trying to break them up misses the point. What the market and consumer can give, it can take away (in a Nairobi minute!). The US Government in the early part of the century broke up Standard Oil because at one point it was supplying 90% of kerosene to households across the US (Yes, there was a time that electricity was not ubiquitous and kerosene was the energy source to light up homes). The government broke it up. But electricity rendered the monopoly irrelevant. The same can be said for Microsoft, Apple, Google, Facebook etc. the market is not perfect but it is more efficient than the Government - any day.
Oh by the way..almost a century later, the different parts of Standard Oil (more than 20 pieces of it) have morphed back again into one - Today we know the company as ExxonMobil. But it is far from a monopoly. For those of you who are interested you can read/watch about this in the series called 'The men who built America'. Just Google it.
As for Safaricom. They continue to innovate and ignore their customers at the same time. A paradox really because with all their innovations they are forgetting another important innovation area - their operations. I suspect there is another Pesky Start Up waiting to eat their lunch and the best we can do is not to put ideas into the regulator's mind that they can overstep their mandate.. Their's is not to break up monopolies but to provide a level playing field and let Wanjiku decide where to put her Shilingis.
My two cowries
Ali Hussein CEO | 3mice interactive media Ltd Principal | Telemedia Africa Ltd
+254 713 601113/ 0770 906375
"The future belongs to him who knows how to wait." - Russian Proverb
Sent from my iPad
On Jul 30, 2013, at 9:25 PM, "Wambua, Christopher" <Wambua@cck.go.ke> wrote:
Edith,
I think you are not fair in your assessment. Measuring QoS and levying penalties for non - compliance as stipulated in the law and respective operators licences does not constitute not taking tangible action or fearing a licensee.
The fact that we are seeking to enhance the penalties for non - compliance in the law demonstrates a commitment to address the problem.
Finally, we also need to appreciate that consumers have a responsibility to take advantage of prevailing competition in the market that CCK has facilitated.
Wambua Sent from my BlackBerry 10 smartphone. From: Edith Adera Sent: Tuesday, 30 July 2013 14:49 PM To: Wambua, Christopher Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: Re: [kictanet] CCK to renew Safaricom's licence
Walu, Well presented! We should be worried, VERY worried, when the “referee” begins to fear the “player”!! Poor QoS is acknowledged, but NO tangible action! I feel that CCK is “skirting around the problem”!! Edith From:Walubengo J [mailto:jwalu@yahoo.com] Sent: July 30, 2013 2:37 PM To: Edith Adera Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: Re: [kictanet] CCK to renew Safaricom's licence @Edith,
I am not a regulator and neither do I intend to shield Wambua/CCK from your question. But I can tell you one way to deal with poor service is to provide competition which I believe CCK has done very well.
(Un?)Fortunately through sheer hard work (or otherwise?) Safcom has managed to get 78% market share in the data market. So they are for all purposes and intent a monopoly in that space. Monopolies by nature tend to be dictate alot of things - including how
to make more money within the shortest time a
_______________________________________________
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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.
kictanet mailing list kictanet@lists.kictanet.or.ke https://lists.kictanet.or.ke/mailman/listinfo/kictanet
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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.
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.
_______________________________________________ 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/ggithaiga%40hotmail.co... 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/memakunat%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.
Wambua, Given that poor QoS has persisted (as you confirm) despite these actions, what else has CCK done or plan to do to improve these services now and not in June 2014? Edith From: Wambua, Christopher [mailto:Wambua@cck.go.ke] Sent: July 30, 2013 9:26 PM To: Edith Adera Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: Re: [kictanet] CCK to renew Safaricom's licence Edith, I think you are not fair in your assessment. Measuring QoS and levying penalties for non - compliance as stipulated in the law and respective operators licences does not constitute not taking tangible action or fearing a licensee. The fact that we are seeking to enhance the penalties for non - compliance in the law demonstrates a commitment to address the problem. Finally, we also need to appreciate that consumers have a responsibility to take advantage of prevailing competition in the market that CCK has facilitated. Wambua Sent from my BlackBerry 10 smartphone. From: Edith Adera Sent: Tuesday, 30 July 2013 14:49 PM To: Wambua, Christopher Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: Re: [kictanet] CCK to renew Safaricom's licence Walu, Well presented! We should be worried, VERY worried, when the “referee” begins to fear the “player”!! Poor QoS is acknowledged, but NO tangible action! I feel that CCK is “skirting around the problem”!! Edith From: Walubengo J [mailto:jwalu@yahoo.com]<mailto:[mailto:jwalu@yahoo.com]> Sent: July 30, 2013 2:37 PM To: Edith Adera Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: Re: [kictanet] CCK to renew Safaricom's licence @Edith, I am not a regulator and neither do I intend to shield Wambua/CCK from your question. But I can tell you one way to deal with poor service is to provide competition which I believe CCK has done very well. (Un?)Fortunately through sheer hard work (or otherwise?) Safcom has managed to get 78% market share in the data market. So they are for all purposes and intent a monopoly in that space. Monopolies by nature tend to be dictate alot of things - including how to make more money within the shortest time and using the lowest effort (squeezed resources). Capitalist call this efficiency, but Users reflect it as poor quality :-) Monopolies as you know are a hard nut to crack (ask Microsoft, Google, AT&T and others). With all due respect, I highly doubt that CCK can crack Safaricom in its own..it might have to explore legal avenues available in the Competition laws. Sponsor one Mutoro, Omutatah et. al. to fundamentally break up the giant that Safaricom has become. And I say this with a heavy heart since I am both a (not-so-big) Safaricom shareholder and 12year old subscriber/customer and I have no clue what or how such a break-up would play out. Choices have consequences.... walu. ________________________________ From: Edith Adera <eadera@idrc.ca<mailto:eadera@idrc.ca>> To: jwalu@yahoo.com<mailto:jwalu@yahoo.com> Cc: Consumer and Public Affairs <CPA@cck.go.ke<mailto:CPA@cck.go.ke>>; KICTAnet ICT Policy Discussions <kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke>> Sent: Tuesday, July 30, 2013 11:28 AM Subject: Re: [kictanet] CCK to renew Safaricom's licence Wambua, This is a very “generic” response! Am I right in reading from your email that NOTHING much is done for poor QoS until licenses are up for renewal? What SPECIFIC actions have been taken to-date? When should we expect better QoS before June 2014? OR are we dealing with a case of “regulatory capture”? Edith From: Wambua, Christopher [mailto:Wambua@cck.go.ke]<mailto:[mailto:Wambua@cck.go.ke]> Sent: July 29, 2013 5:39 PM To: Edith Adera Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: RE: [kictanet] CCK to renew Safaricom's licence Importance: High Edith/Listers One of the responsibilities of CCK is to protect the interests of consumers, including against poor quality of service. To this end, CCK independently monitors the QoS on annual basis to determine whether licensees meet the minimum set parameters or standards. Each year, we publish the performance of the four mobile operators in respect to QoS to empower consumers make informed choices in the market. We also levy penalties on non-compliant licensees (i.e. those that do not meet the set standards). The penalties stipulated in the Kenya Information and Communications Act, CAP 411A of Kshs500,000, are however too low and do not serve as an adequate deterrent. To address this, the penalties have been enhanced in the proposed Kenya Information and Communications (Amendment) Bill. CCK is also enhancing its monitoring capabilities to be able to process and publish the performance results more frequently for public information and as a way of encouraging service providers to provide quality services. The monitoring results also assist licensees to identify areas of non-compliance for purposes of improvement. Arising from our concern over QoS performance, CCK has requested non-compliant licensees to submit action plans on how they intend to improve on QoS. Let me also add that QoS is a major consideration in the renewal of licences for the mobile operators and other service providers. The renewal of the Safaricom licence is due in June 2014. CCK is looking forward to enhancing the licence conditions in respect to QoS to make ensure that consumers get value for their money. Best regards, Christopher Wambua Manager – Communications Consumer and Public Affairs Department Communications Commission of Kenya P.O. Box 14448 NAIROBI 00800 Tel: +254 20 4242209 info@cck.go.ke<mailto:info@cck.go.ke> www.cck.go.ke<http://www.cck.go.ke/> From: Edith Adera [mailto:eadera@idrc.ca]<mailto:[mailto:eadera@idrc.ca]> Sent: Monday, July 29, 2013 4:43 PM To: Wambua, Christopher Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: RE: [kictanet] CCK to renew Safaricom's licence Dear Wambua, Thanks for bringing this issue to our attention. Actually, 2 weeks ago an email I had composed for the list got deleted before I could deliver it…then I got swamped! The email was about the “poor quality of service” from Safaricom – too many dropped calls, uncompleted calls, undelivered sms”, hanging sms” etc. and asking the BIG QUESTION: “WHAT IS CCK DOING ABOUT THIS UNACCEPTABLY LOW QUALITY OF SERVICE?” I see you have suggested that renewal of license is subject to “ …..meeting set minimum quality of service standards by June 2014.” Why by June 2014? We want good service NOW! Can CCK address this now and get back to us telling us what will be done now and NOT June 2014? Concerned Edith From: kictanet [mailto:kictanet-bounces+eadera=idrc.ca@lists.kictanet.or.ke]<mailto:[mailto:kictanet-bounces+eadera=idrc.ca@lists.kictanet.or.ke]> On Behalf Of Wambua, Christopher Sent: July 26, 2013 4:48 PM To: Edith Adera Cc: Consumer and Public Affairs; KICTAnet ICT Policy Discussions Subject: [kictanet] CCK to renew Safaricom's licence Importance: High Listers, CCK to renew Safaricom’s licence Kenya’s largest mobile operator – Safaricom – will pay Kshs2.36billion (US$27million) for renewal of its operating licence for a further term of 10 years. CCK today announced that the renewal of Safaricom’s licence would depend on the operator paying the renewal fee upfront and meeting the set minimum quality of service standards by June 2014. Safaricom’s initial licence term of 15 years is set to expire on 30th June 2014 but has a provision for a possible renewal for a further term of 10 years. Addressing the media at the CCK offices, CCK Director General Mr. Francis Wangusi said the renewed Safaricom licence would come with a set of new licence terms and conditions negotiated between the regulator and the mobile operator. The licence renewal fee of US$27 million is based on the bid price offered for the third GSM mobile licence by the latest entrant to the mobile telecoms market in Kenya -Econet Wireless Kenya Ltd (now Essar Telecom Kenya Ltd). The Director General said that whereas Safaricom has significantly contributed to the economy, developed innovative products and services and met most its licence obligations, the mobile operator needs to up its game in regard to meeting the set quality of service standards. ‘‘We have considered the fact that whereas Safaricom has met most of its licence obligations, its continued failure to meet the set Quality of Service standards remains a concern that needs to be addressed,’’ said Mr. Wangusi. Mr. Wangusi further said the three other mobile operators would pay the same amount for renewal of their licences for a further term of 10 year to ensure parity and a level playing ground for all service providers in the sector. At the sametime, the Director General said the spectrum assigned to the four mobile operators will be subjected to an auction after the expiry of the 10-year renewal term. , The full statement of the Director General is available on the CCK website at http://www.cck.go.ke/news/speeches/2013/Press_statement__Safaricom_licence.p... Wambua _______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke<mailto: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.
participants (8)
-
Ali Hussein -
Edith Adera -
Grace Githaiga -
John Kariuki -
Kivuva -
meshack emakunat -
Walubengo J -
Wambua, Christopher