FW: Price Control in the Telecom Market in Kenya?
Some statistics! [cid:232ABEC3-0D4A-470B-8906-0E1C4373025B] EBITDA is Earning before interest tax depreciation and amortization and is an accounting measure that allows comparison across companies since it neutralizes tax and cost of capital effects as well as depreciation rules.
Hi Edith Thanks for the data which could give some empirical data on which to make informed decisions on the cost of mobile services In doing so we need to interrogate the tool used for the comparison and see how far it is valid in our situation and therefore the validity of the comparison The tool by OECD developed in 2006 assumes common or nearly common features of the operators i.e. - a case in point is coverage . In Kenya , this is not the case, Safaricom has the largest coverage and therefore a price comparison must take this into account which the tool cannot . given that low end users as intended by the tool wish to travel across the country , an improved tool would capture signal per km coverage - Safaricom would come out cheapest . That tool used by the policy makers would encourage even more investment to expand coverage - Services wrapped around a number - the OECD tool assumes voice and limited data services - Kenya is in the global map because of the services it has put around the cellular number . thus different operators have put different services and which gives a low end user an advantage . again some of the operators have different spread of MMT coverage and services around it and one got global recognition and award ( Safaricom was awarded this week in Barcelona), support for low end user e.g. Okoa jahazi, data offering e.g. 3G , support for the number - access to customer care , and psychological image - branding around it This is why many Kenyans have more than one sim card. While one card may give a cost advantage on voice in and around urban areas, the same SIM card does not give MMT or data and hence the need to have another card or even another phone. The cost is eventually is high for the low end user We can put Kenya in the map again by developing our own tool that helps Kenya towards vision 2030. OECD tool is not appropriate for a developing country like Kenya . it fails to capture why Kenya is on the world map and where we have failed , why we failed cheers Muriuki Mureithi Those who bring sunshine to the lives of others cannot keep it from themselves. Sir james m barrie From: kictanet-bounces+mureithi=summitstrategies.co.ke@lists.kictanet.or.ke [mailto:kictanet-bounces+mureithi=summitstrategies.co.ke@lists.kictanet.or.k e] On Behalf Of Edith Adera Sent: 18 February 2011 07:39 To: mureithi@summitstrategies.co.ke Cc: KICTAnet ICT Policy Discussions Subject: [kictanet] FW: Price Control in the Telecom Market in Kenya? Some statistics! EBITDA is Earning before interest tax depreciation and amortization and is an accounting measure that allows comparison across companies since it neutralizes tax and cost of capital effects as well as depreciation rules.
ICANN has announced, through David Olive, Vice President, Policy Development Support, that its international meeting scheduled for Jordan in June will now not be held there. A new venue, expected to be Singapore, will be announced later. FIA is also considering whether to go ahead with the opening F1 race in Bahrain next month. Waudo
participants (3)
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Edith Adera
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muriuki mureithi
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waudo siganga