@Mwendwa and all it looks like that's what the consultant is suggesting. Here are two other excerpts from the report that I find interesting:- The most draconian of the prescriptions is the proposal to functionally separate M-Pesa from Safaricom. This is tantamount to proposing a break-up of Safaricom because in terms of growth revenues, M-Pesa is on track to reach 50 per cent of the company’s net revenues. The consultants have also proposed what they call “mandatory wallet-to wallet interoperability”, a system where a consumer can keep cloud accounts across the platforms of different mobile companies, making it possible to move and shift money between accounts as one chooses. I have said before and I'm happy to repeat this again. Separating M-Pesa from Safaricom should not be forced on Safaricom. In my humble opinion Safaricom should by now have done this voluntarily as a strategic imperative to transform itself into the De-Facto National (Regional) Mobile Payment System. I think the lost opportunity here can be seen by the KBA launching a rival Mobile Platform called PesaLink. The mandatory 'Wallet to Wallet' interoperability is an interesting angle and needs to seriously be considered. This sort of compliments my point above. They have also recommended a system that they call “agent to agent interoperability”, where agents will be able to support multiple mobile money platforms using what is described in technical language as “a single float”. This is certainly interesting. In as much as this supports the notion of 'User or Customer Experience' I think the Regulator and the Telcos should work towards ensuring this becomes a reality. In essence this could be a solution to the allegations that Safaricom discourages its agent network from dealing with rival Telcos. Lastly, I would largely concur with Jaindi Ksero's conclusion (sort of) that the Consultant has displayed a lack of knowledge in the functioning of our national payments system. I would however like to add one for the road:- Are our Regulators (CA, CAK and CBK) prepared to empower, grow and regulate with a light touch the seemingly fluid Telco, Banking, Payments and Fintech Spaces while ensuring that:- a) They embrace innovation and new thinking while protecting National Interests and consumers at the same time? b) They work together without resorting to Turf Wars as evidenced in the tiff between the CA and the CAK in 2015. http://www.businessdailyafrica.com/Corporate-News/Competition--telecoms-watc... c) They consider creating a Joint Task Force to monitor, encourage and empower players in the spaces mentioned to become Regional and Global Players? I have often wondered aloud about the CBK's core mandate of protecting Depositors' funds and wondered (again aloud) whether this mandate is outdated and that it should be expanded to that of becoming an empowering public entity that encourages research, innovation and entrepreneurship in the burgeoning convergence of Banking, Telcos, Payments and Fintech Spaces. d) Regulatory tools need to be rebooted and upgraded to reflect the times. The current scenarios are such that one doesn't even know anymore which industry one operates in. This is a plea for the Regulation Mandates to drastically change and embrace the now and the future. Can the Future Czars step up? Ali Hussein Principal Hussein & Associates +254 0713 601113 Twitter: @AliHKassim Skype: abu-jomo LinkedIn: http://ke.linkedin.com/in/alihkassim "We are what we repeatedly do. Excellence, therefore, is not an act but a habit." ~ Aristotle Sent from my iPad

On 21 Feb 2017, at 11:12 PM, Mwendwa Kivuva via kictanet <kictanet@lists.kictanet.or.ke> wrote:

So technically, we want to break up Safaricom so that these companies can gain some traction "Airtel, has made cumulative debt to date of Sh51 billion, according to latest audited accounts for the financial year 2015. Indeed, in the league of loss makers, only Kenya Airways, with their Sh54 billion lost in the most recent years, compares to Airtel. As a matter of fact, the numbers in the company’s annual accounts show that Airtel is insolvent and only surviving on life support from the parent company in India. Safaricom’s only other rival, Orange Telkom, has gone through exceedingly difficult trading and financial conditions over the past decade. This a firm that is technically insolvent. It has gone through several episodes of restructuring that have not materially changed its circumstances." ______________________ Mwendwa Kivuva, Nairobi, Kenya twitter.com/lordmwesh

On 21 February 2017 at 23:48, Grace Githaiga via kictanet <kictanet@lists.kictanet.or.ke> wrote:

...

Jaindi Kisero gives us a glimpse of the competition study in the telecommunication sub-sector undertaken by Ms Analysys Mason on behalf of CA. See full article:

"I recently came across a report by the consulting group Analysys Mason entitled "A telecommunication competition market study in Kenya". Readers will recall that these consultants were retained by the market regulator – the Communications Authority of Kenya – to conduct a study whose results were to inform the crafting of a new framework for regulating abuse of market dominance by the big players.

As expected, one of the key findings of this study is that Safaricom’s market share in both the mobile communications and mobile money segments far exceed the thresholds where firms are typically presumed to be dominant."

http://www.nation.co.ke/oped/Opinion/consumer-protection-a-means-of-cutting-...

Best regards

Githaiga, Grace

Co-Convenor Kenya ICT Action Network (KICTANet) Twitter:@ggithaiga Tel: 254722701495 Skype: gracegithaiga Alternate email: ggithaiga@hotmail.com Linkedin: https://www.linkedin.com/in/gracegithaiga www.kictanet.or.ke

"Change only happens when ordinary people get involved, get engaged and come together to demand it. I am asking you to believe. Not in my ability to bring about change – but in yours"---Barrack Obama.

_______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke https://lists.kictanet.or.ke/mailman/listinfo/kictanet Twitter: http://twitter.com/kictanet Facebook: https://www.facebook.com/KICTANet/

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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.

Barrack Im one of those old enough to remember. :-) However my take is this:- The markets have evolved so much and the dynamics of innovation, the market place and the consumer changed so much that the the Heavy Hand of Regulation must now be tampered by the light touch of nurturing and encouraging innovation and the market players to act and behave in a responsible manner. Failure to which the Market will deal with them in a most ruthless manner. The market won't break you up. It will decimate you and leave you for the dead. Just ask Telkom Kenya, Posta, Nokia and other once 'Dominant' global players. I think we are focusing on the wrong things. By all means, keep a leash on the lean, mean fighting machine that is Safaricom. But also nurture home grown players -The PesaPals, the Cellulant, the WayaWayas, the Anganis, the Zuku's and Jamiis to ensure that we build such a deep bench of players that this Dominance conversation will be placed where it belongs - in the dustbins of history. Ali Hussein Principal Hussein & Associates +254 0713 601113 Twitter: @AliHKassim Skype: abu-jomo LinkedIn: http://ke.linkedin.com/in/alihkassim "We are what we repeatedly do. Excellence, therefore, is not an act but a habit." ~ Aristotle Sent from my iPad

On 22 Feb 2017, at 5:27 AM, Barrack Otieno <otieno.barrack@gmail.com> wrote:

Hi colleagues,

I need an explanation like a two year old on this whole dominance debate. Maybe Walu can help me here. Safaricom was a subsidiary of Telkom Kenya focused on the mobile phone (GSM) Segment. Looking back into the past and as a result of Liberization, the then giant Kenya Posts and Telecommunications Corporation was split into , Telkom Kenya, Communications Authority of Kenya (CCK then as the regulator and Posta to handle the post office. We need to step back and interrogate the real reasons as to why Progress of Telkom Kenya and Posta has backfired in a maximum of ten bullet points. On the other hand, we also need to figure out how Safaricom (a subsidiary of Telkom Kenya which is now a public company bolted out of the stable and became a success). My simple questions:

1. Will a split of Safaricom yield the desired effect? 2. Is it in the interest of Safaricom (the company or organization that is a legally recognized person by the laws of the land to split so as to suit the competition. 3. Can someone share case studies of where this has worked before?

Walu or anyone as old as Kenya Posts and Telecommunication Corporation please help.

Following...

...

On 2/22/17, Ali Hussein via kictanet <kictanet@lists.kictanet.or.ke> wrote: @Mwendwa and all

it looks like that's what the consultant is suggesting.

Here are two other excerpts from the report that I find interesting:-

The most draconian of the prescriptions is the proposal to functionally separate M-Pesa from Safaricom. This is tantamount to proposing a break-up of Safaricom because in terms of growth revenues, M-Pesa is on track to reach 50 per cent of the company’s net revenues. The consultants have also proposed what they call “mandatory wallet-to wallet interoperability”, a system where a consumer can keep cloud accounts across the platforms of different mobile companies, making it possible to move and shift money between accounts as one chooses.

I have said before and I'm happy to repeat this again. Separating M-Pesa from Safaricom should not be forced on Safaricom. In my humble opinion Safaricom should by now have done this voluntarily as a strategic imperative to transform itself into the De-Facto National (Regional) Mobile Payment System. I think the lost opportunity here can be seen by the KBA launching a rival Mobile Platform called PesaLink.

The mandatory 'Wallet to Wallet' interoperability is an interesting angle and needs to seriously be considered. This sort of compliments my point above.

They have also recommended a system that they call “agent to agent interoperability”, where agents will be able to support multiple mobile money platforms using what is described in technical language as “a single float”.

This is certainly interesting. In as much as this supports the notion of 'User or Customer Experience' I think the Regulator and the Telcos should work towards ensuring this becomes a reality. In essence this could be a solution to the allegations that Safaricom discourages its agent network from dealing with rival Telcos.

Lastly, I would largely concur with Jaindi Ksero's conclusion (sort of) that the Consultant has displayed a lack of knowledge in the functioning of our national payments system. I would however like to add one for the road:-

Are our Regulators (CA, CAK and CBK) prepared to empower, grow and regulate with a light touch the seemingly fluid Telco, Banking, Payments and Fintech Spaces while ensuring that:-

a) They embrace innovation and new thinking while protecting National Interests and consumers at the same time?

b) They work together without resorting to Turf Wars as evidenced in the tiff between the CA and the CAK in 2015. http://www.businessdailyafrica.com/Corporate-News/Competition--telecoms-watc...

c) They consider creating a Joint Task Force to monitor, encourage and empower players in the spaces mentioned to become Regional and Global Players? I have often wondered aloud about the CBK's core mandate of protecting Depositors' funds and wondered (again aloud) whether this mandate is outdated and that it should be expanded to that of becoming an empowering public entity that encourages research, innovation and entrepreneurship in the burgeoning convergence of Banking, Telcos, Payments and Fintech Spaces. d) Regulatory tools need to be rebooted and upgraded to reflect the times. The current scenarios are such that one doesn't even know anymore which industry one operates in.

This is a plea for the Regulation Mandates to drastically change and embrace the now and the future.

Can the Future Czars step up?

Ali Hussein Principal Hussein & Associates +254 0713 601113

Twitter: @AliHKassim Skype: abu-jomo LinkedIn: http://ke.linkedin.com/in/alihkassim

"We are what we repeatedly do. Excellence, therefore, is not an act but a habit." ~ Aristotle

Sent from my iPad

...

On 21 Feb 2017, at 11:12 PM, Mwendwa Kivuva via kictanet <kictanet@lists.kictanet.or.ke> wrote:

So technically, we want to break up Safaricom so that these companies can gain some traction "Airtel, has made cumulative debt to date of Sh51 billion, according to latest audited accounts for the financial year 2015. Indeed, in the league of loss makers, only Kenya Airways, with their Sh54 billion lost in the most recent years, compares to Airtel. As a matter of fact, the numbers in the company’s annual accounts show that Airtel is insolvent and only surviving on life support from the parent company in India. Safaricom’s only other rival, Orange Telkom, has gone through exceedingly difficult trading and financial conditions over the past decade. This a firm that is technically insolvent. It has gone through several episodes of restructuring that have not materially changed its circumstances." ______________________ Mwendwa Kivuva, Nairobi, Kenya twitter.com/lordmwesh

On 21 February 2017 at 23:48, Grace Githaiga via kictanet <kictanet@lists.kictanet.or.ke> wrote:

...

Jaindi Kisero gives us a glimpse of the competition study in the telecommunication sub-sector undertaken by Ms Analysys Mason on behalf of CA. See full article:

"I recently came across a report by the consulting group Analysys Mason entitled "A telecommunication competition market study in Kenya". Readers will recall that these consultants were retained by the market regulator – the Communications Authority of Kenya – to conduct a study whose results were to inform the crafting of a new framework for regulating abuse of market dominance by the big players.

As expected, one of the key findings of this study is that Safaricom’s market share in both the mobile communications and mobile money segments far exceed the thresholds where firms are typically presumed to be dominant."

http://www.nation.co.ke/oped/Opinion/consumer-protection-a-means-of-cutting-...

Best regards

Githaiga, Grace

Co-Convenor Kenya ICT Action Network (KICTANet) Twitter:@ggithaiga Tel: 254722701495 Skype: gracegithaiga Alternate email: ggithaiga@hotmail.com Linkedin: https://www.linkedin.com/in/gracegithaiga www.kictanet.or.ke

"Change only happens when ordinary people get involved, get engaged and come together to demand it. I am asking you to believe. Not in my ability to bring about change – but in yours"---Barrack Obama.

_______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke https://lists.kictanet.or.ke/mailman/listinfo/kictanet Twitter: http://twitter.com/kictanet Facebook: https://www.facebook.com/KICTANet/

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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 Twitter: http://twitter.com/kictanet Facebook: https://www.facebook.com/KICTANet/

Unsubscribe or change your options at https://lists.kictanet.or.ke/mailman/options/kictanet/info%40alyhussein.com

The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.

KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.

-- Barrack O. Otieno +254721325277 +254733206359 Skype: barrack.otieno PGP ID: 0x2611D86A

Nurture:- In English:- Care for and encourage the growth or development of.. In Kiswahili:- Kulea, kubembeleza kwa miajili ya kukuza na kufanisha In Mogotio, Kenya Someone who speaks Tugen, Pokot or Njemps please help translate the above.. :-) I'm at my wits end.. :-) Have a lovely day Ali Hussein Hussein & Associates +254 0713 601113 / 0770906375 Twitter: @AliHKassim Skype: abu-jomo LinkedIn: http://ke.linkedin.com/in/alihkassim Blog: www.alyhussein.com "Discovery consists in seeing what everyone else has seen and thinking what no one else has thought". ~ Albert Szent-Györgyi Sent from my iPad

On 22 Feb 2017, at 6:24 AM, Barrack Otieno via kictanet <kictanet@lists.kictanet.or.ke> wrote:

Hi Ali,

Kindly define nurture as you would to a District Commissioner in Mogotio.

Regards

...

On 2/22/17, Ali Hussein <ali@hussein.me.ke> wrote: Barrack

Im one of those old enough to remember. :-)

However my take is this:-

The markets have evolved so much and the dynamics of innovation, the market place and the consumer changed so much that the the Heavy Hand of Regulation must now be tampered by the light touch of nurturing and encouraging innovation and the market players to act and behave in a responsible manner. Failure to which the Market will deal with them in a most ruthless manner. The market won't break you up. It will decimate you and leave you for the dead. Just ask Telkom Kenya, Posta, Nokia and other once 'Dominant' global players.

I think we are focusing on the wrong things. By all means, keep a leash on the lean, mean fighting machine that is Safaricom. But also nurture home grown players -The PesaPals, the Cellulant, the WayaWayas, the Anganis, the Zuku's and Jamiis to ensure that we build such a deep bench of players that this Dominance conversation will be placed where it belongs - in the dustbins of history.

Ali Hussein Principal Hussein & Associates +254 0713 601113

Twitter: @AliHKassim Skype: abu-jomo LinkedIn: http://ke.linkedin.com/in/alihkassim

"We are what we repeatedly do. Excellence, therefore, is not an act but a habit." ~ Aristotle

Sent from my iPad

...

On 22 Feb 2017, at 5:27 AM, Barrack Otieno <otieno.barrack@gmail.com> wrote:

Hi colleagues,

I need an explanation like a two year old on this whole dominance debate. Maybe Walu can help me here. Safaricom was a subsidiary of Telkom Kenya focused on the mobile phone (GSM) Segment. Looking back into the past and as a result of Liberization, the then giant Kenya Posts and Telecommunications Corporation was split into , Telkom Kenya, Communications Authority of Kenya (CCK then as the regulator and Posta to handle the post office. We need to step back and interrogate the real reasons as to why Progress of Telkom Kenya and Posta has backfired in a maximum of ten bullet points. On the other hand, we also need to figure out how Safaricom (a subsidiary of Telkom Kenya which is now a public company bolted out of the stable and became a success). My simple questions:

1. Will a split of Safaricom yield the desired effect? 2. Is it in the interest of Safaricom (the company or organization that is a legally recognized person by the laws of the land to split so as to suit the competition. 3. Can someone share case studies of where this has worked before?

Walu or anyone as old as Kenya Posts and Telecommunication Corporation please help.

Following...

...

On 2/22/17, Ali Hussein via kictanet <kictanet@lists.kictanet.or.ke> wrote: @Mwendwa and all

it looks like that's what the consultant is suggesting.

Here are two other excerpts from the report that I find interesting:-

The most draconian of the prescriptions is the proposal to functionally separate M-Pesa from Safaricom. This is tantamount to proposing a break-up of Safaricom because in terms of growth revenues, M-Pesa is on track to reach 50 per cent of the company’s net revenues. The consultants have also proposed what they call “mandatory wallet-to wallet interoperability”, a system where a consumer can keep cloud accounts across the platforms of different mobile companies, making it possible to move and shift money between accounts as one chooses.

I have said before and I'm happy to repeat this again. Separating M-Pesa from Safaricom should not be forced on Safaricom. In my humble opinion Safaricom should by now have done this voluntarily as a strategic imperative to transform itself into the De-Facto National (Regional) Mobile Payment System. I think the lost opportunity here can be seen by the KBA launching a rival Mobile Platform called PesaLink.

The mandatory 'Wallet to Wallet' interoperability is an interesting angle and needs to seriously be considered. This sort of compliments my point above.

They have also recommended a system that they call “agent to agent interoperability”, where agents will be able to support multiple mobile money platforms using what is described in technical language as “a single float”.

This is certainly interesting. In as much as this supports the notion of 'User or Customer Experience' I think the Regulator and the Telcos should work towards ensuring this becomes a reality. In essence this could be a solution to the allegations that Safaricom discourages its agent network from dealing with rival Telcos.

Lastly, I would largely concur with Jaindi Ksero's conclusion (sort of) that the Consultant has displayed a lack of knowledge in the functioning of our national payments system. I would however like to add one for the road:-

Are our Regulators (CA, CAK and CBK) prepared to empower, grow and regulate with a light touch the seemingly fluid Telco, Banking, Payments and Fintech Spaces while ensuring that:-

a) They embrace innovation and new thinking while protecting National Interests and consumers at the same time?

b) They work together without resorting to Turf Wars as evidenced in the tiff between the CA and the CAK in 2015. http://www.businessdailyafrica.com/Corporate-News/Competition--telecoms-watc...

c) They consider creating a Joint Task Force to monitor, encourage and empower players in the spaces mentioned to become Regional and Global Players? I have often wondered aloud about the CBK's core mandate of protecting Depositors' funds and wondered (again aloud) whether this mandate is outdated and that it should be expanded to that of becoming an empowering public entity that encourages research, innovation and entrepreneurship in the burgeoning convergence of Banking, Telcos, Payments and Fintech Spaces. d) Regulatory tools need to be rebooted and upgraded to reflect the times. The current scenarios are such that one doesn't even know anymore which industry one operates in.

This is a plea for the Regulation Mandates to drastically change and embrace the now and the future.

Can the Future Czars step up?

Ali Hussein Principal Hussein & Associates +254 0713 601113

Twitter: @AliHKassim Skype: abu-jomo LinkedIn: http://ke.linkedin.com/in/alihkassim

"We are what we repeatedly do. Excellence, therefore, is not an act but a habit." ~ Aristotle

Sent from my iPad

...

On 21 Feb 2017, at 11:12 PM, Mwendwa Kivuva via kictanet <kictanet@lists.kictanet.or.ke> wrote:

So technically, we want to break up Safaricom so that these companies can gain some traction "Airtel, has made cumulative debt to date of Sh51 billion, according to latest audited accounts for the financial year 2015. Indeed, in the league of loss makers, only Kenya Airways, with their Sh54 billion lost in the most recent years, compares to Airtel. As a matter of fact, the numbers in the company’s annual accounts show that Airtel is insolvent and only surviving on life support from the parent company in India. Safaricom’s only other rival, Orange Telkom, has gone through exceedingly difficult trading and financial conditions over the past decade. This a firm that is technically insolvent. It has gone through several episodes of restructuring that have not materially changed its circumstances." ______________________ Mwendwa Kivuva, Nairobi, Kenya twitter.com/lordmwesh

On 21 February 2017 at 23:48, Grace Githaiga via kictanet <kictanet@lists.kictanet.or.ke> wrote:

...

Jaindi Kisero gives us a glimpse of the competition study in the telecommunication sub-sector undertaken by Ms Analysys Mason on behalf of CA. See full article:

"I recently came across a report by the consulting group Analysys Mason entitled "A telecommunication competition market study in Kenya". Readers will recall that these consultants were retained by the market regulator – the Communications Authority of Kenya – to conduct a study whose results were to inform the crafting of a new framework for regulating abuse of market dominance by the big players.

As expected, one of the key findings of this study is that Safaricom’s market share in both the mobile communications and mobile money segments far exceed the thresholds where firms are typically presumed to be dominant."

http://www.nation.co.ke/oped/Opinion/consumer-protection-a-means-of-cutting-...

Best regards

Githaiga, Grace

Co-Convenor Kenya ICT Action Network (KICTANet) Twitter:@ggithaiga Tel: 254722701495 Skype: gracegithaiga Alternate email: ggithaiga@hotmail.com Linkedin: https://www.linkedin.com/in/gracegithaiga www.kictanet.or.ke

"Change only happens when ordinary people get involved, get engaged and come together to demand it. I am asking you to believe. Not in my ability to bring about change – but in yours"---Barrack Obama.

_______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke https://lists.kictanet.or.ke/mailman/listinfo/kictanet Twitter: http://twitter.com/kictanet Facebook: https://www.facebook.com/KICTANet/

Unsubscribe or change your options at https://lists.kictanet.or.ke/mailman/options/kictanet/kivuva%40transworldafr...

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 Twitter: http://twitter.com/kictanet Facebook: https://www.facebook.com/KICTANet/

Unsubscribe or change your options at https://lists.kictanet.or.ke/mailman/options/kictanet/info%40alyhussein.com

The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.

KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.

-- Barrack O. Otieno +254721325277 +254733206359 Skype: barrack.otieno PGP ID: 0x2611D86A

-- Barrack O. Otieno +254721325277 +254733206359 Skype: barrack.otieno PGP ID: 0x2611D86A

_______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke https://lists.kictanet.or.ke/mailman/listinfo/kictanet Twitter: http://twitter.com/kictanet Facebook: https://www.facebook.com/KICTANet/

Unsubscribe or change your options at https://lists.kictanet.or.ke/mailman/options/kictanet/info%40campusciti.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.

Barrack The free milk is part of nurturing. We now just need to translate what I posted into relevant use cases across the country.. :-) Ali Hussein Principal Hussein & Associates +254 0713 601113 Twitter: @AliHKassim Skype: abu-jomo LinkedIn: http://ke.linkedin.com/in/alihkassim "We are what we repeatedly do. Excellence, therefore, is not an act but a habit." ~ Aristotle Sent from my iPad

On 22 Feb 2017, at 6:50 AM, Barrack Otieno via kictanet <kictanet@lists.kictanet.or.ke> wrote:

Unfortunately that definition is still too complicated :-), which is why we encounter challenges some people equate nurture to free milk given during the Nyayo era which had a corresponding effect on school attendance , some removal of VAT on computers and ICT equipment like it was during the Kibaki era which had a corresponding effect on the ICT Sector.

Kongoi as we we say in Mogotio

...

On 2/22/17, Admin CampusCiti <info@campusciti.com> wrote: Nurture:-

In English:- Care for and encourage the growth or development of..

In Kiswahili:- Kulea, kubembeleza kwa miajili ya kukuza na kufanisha

In Mogotio, Kenya Someone who speaks Tugen, Pokot or Njemps please help translate the above.. :-) I'm at my wits end.. :-)

Have a lovely day

Ali Hussein Hussein & Associates +254 0713 601113 / 0770906375

Twitter: @AliHKassim Skype: abu-jomo LinkedIn: http://ke.linkedin.com/in/alihkassim Blog: www.alyhussein.com

"Discovery consists in seeing what everyone else has seen and thinking what no one else has thought". ~ Albert Szent-Györgyi

Sent from my iPad

...

On 22 Feb 2017, at 6:24 AM, Barrack Otieno via kictanet <kictanet@lists.kictanet.or.ke> wrote:

Hi Ali,

Kindly define nurture as you would to a District Commissioner in Mogotio.

Regards

...

On 2/22/17, Ali Hussein <ali@hussein.me.ke> wrote: Barrack

Im one of those old enough to remember. :-)

However my take is this:-

The markets have evolved so much and the dynamics of innovation, the market place and the consumer changed so much that the the Heavy Hand of Regulation must now be tampered by the light touch of nurturing and encouraging innovation and the market players to act and behave in a responsible manner. Failure to which the Market will deal with them in a most ruthless manner. The market won't break you up. It will decimate you and leave you for the dead. Just ask Telkom Kenya, Posta, Nokia and other once 'Dominant' global players.

I think we are focusing on the wrong things. By all means, keep a leash on the lean, mean fighting machine that is Safaricom. But also nurture home grown players -The PesaPals, the Cellulant, the WayaWayas, the Anganis, the Zuku's and Jamiis to ensure that we build such a deep bench of players that this Dominance conversation will be placed where it belongs - in the dustbins of history.

Ali Hussein Principal Hussein & Associates +254 0713 601113

Twitter: @AliHKassim Skype: abu-jomo LinkedIn: http://ke.linkedin.com/in/alihkassim

"We are what we repeatedly do. Excellence, therefore, is not an act but a habit." ~ Aristotle

Sent from my iPad

...

On 22 Feb 2017, at 5:27 AM, Barrack Otieno <otieno.barrack@gmail.com> wrote:

Hi colleagues,

I need an explanation like a two year old on this whole dominance debate. Maybe Walu can help me here. Safaricom was a subsidiary of Telkom Kenya focused on the mobile phone (GSM) Segment. Looking back into the past and as a result of Liberization, the then giant Kenya Posts and Telecommunications Corporation was split into , Telkom Kenya, Communications Authority of Kenya (CCK then as the regulator and Posta to handle the post office. We need to step back and interrogate the real reasons as to why Progress of Telkom Kenya and Posta has backfired in a maximum of ten bullet points. On the other hand, we also need to figure out how Safaricom (a subsidiary of Telkom Kenya which is now a public company bolted out of the stable and became a success). My simple questions:

1. Will a split of Safaricom yield the desired effect? 2. Is it in the interest of Safaricom (the company or organization that is a legally recognized person by the laws of the land to split so as to suit the competition. 3. Can someone share case studies of where this has worked before?

Walu or anyone as old as Kenya Posts and Telecommunication Corporation please help.

Following...

...

On 2/22/17, Ali Hussein via kictanet <kictanet@lists.kictanet.or.ke> wrote: @Mwendwa and all

it looks like that's what the consultant is suggesting.

Here are two other excerpts from the report that I find interesting:-

The most draconian of the prescriptions is the proposal to functionally separate M-Pesa from Safaricom. This is tantamount to proposing a break-up of Safaricom because in terms of growth revenues, M-Pesa is on track to reach 50 per cent of the company’s net revenues. The consultants have also proposed what they call “mandatory wallet-to wallet interoperability”, a system where a consumer can keep cloud accounts across the platforms of different mobile companies, making it possible to move and shift money between accounts as one chooses.

I have said before and I'm happy to repeat this again. Separating M-Pesa from Safaricom should not be forced on Safaricom. In my humble opinion Safaricom should by now have done this voluntarily as a strategic imperative to transform itself into the De-Facto National (Regional) Mobile Payment System. I think the lost opportunity here can be seen by the KBA launching a rival Mobile Platform called PesaLink.

The mandatory 'Wallet to Wallet' interoperability is an interesting angle and needs to seriously be considered. This sort of compliments my point above.

They have also recommended a system that they call “agent to agent interoperability”, where agents will be able to support multiple mobile money platforms using what is described in technical language as “a single float”.

This is certainly interesting. In as much as this supports the notion of 'User or Customer Experience' I think the Regulator and the Telcos should work towards ensuring this becomes a reality. In essence this could be a solution to the allegations that Safaricom discourages its agent network from dealing with rival Telcos.

Lastly, I would largely concur with Jaindi Ksero's conclusion (sort of) that the Consultant has displayed a lack of knowledge in the functioning of our national payments system. I would however like to add one for the road:-

Are our Regulators (CA, CAK and CBK) prepared to empower, grow and regulate with a light touch the seemingly fluid Telco, Banking, Payments and Fintech Spaces while ensuring that:-

a) They embrace innovation and new thinking while protecting National Interests and consumers at the same time?

b) They work together without resorting to Turf Wars as evidenced in the tiff between the CA and the CAK in 2015. http://www.businessdailyafrica.com/Corporate-News/Competition--telecoms-watc...

c) They consider creating a Joint Task Force to monitor, encourage and empower players in the spaces mentioned to become Regional and Global Players? I have often wondered aloud about the CBK's core mandate of protecting Depositors' funds and wondered (again aloud) whether this mandate is outdated and that it should be expanded to that of becoming an empowering public entity that encourages research, innovation and entrepreneurship in the burgeoning convergence of Banking, Telcos, Payments and Fintech Spaces. d) Regulatory tools need to be rebooted and upgraded to reflect the times. The current scenarios are such that one doesn't even know anymore which industry one operates in.

This is a plea for the Regulation Mandates to drastically change and embrace the now and the future.

Can the Future Czars step up?

Ali Hussein Principal Hussein & Associates +254 0713 601113

Twitter: @AliHKassim Skype: abu-jomo LinkedIn: http://ke.linkedin.com/in/alihkassim

"We are what we repeatedly do. Excellence, therefore, is not an act but a habit." ~ Aristotle

Sent from my iPad

> On 21 Feb 2017, at 11:12 PM, Mwendwa Kivuva via kictanet > <kictanet@lists.kictanet.or.ke> wrote: > > So technically, we want to break up Safaricom so that these companies > can gain some traction "Airtel, has made cumulative debt to date of > Sh51 billion, according to latest audited accounts for the financial > year 2015. Indeed, in the league of loss makers, only Kenya Airways, > with their Sh54 billion lost in the most recent years, compares to > Airtel. As a matter of fact, the numbers in the company’s annual > accounts show that Airtel is insolvent and only surviving on life > support from the parent company in India. Safaricom’s only other > rival, Orange Telkom, has gone through exceedingly difficult trading > and financial conditions over the past decade. This a firm that is > technically insolvent. It has gone through several episodes of > restructuring that have not materially changed its circumstances." > ______________________ > Mwendwa Kivuva, Nairobi, Kenya > twitter.com/lordmwesh > > > > > On 21 February 2017 at 23:48, Grace Githaiga via kictanet > <kictanet@lists.kictanet.or.ke> wrote: >> >> Jaindi Kisero gives us a glimpse of the competition study in the >> telecommunication sub-sector undertaken by Ms Analysys Mason on >> behalf >> of >> CA. See full article: >> >> "I recently came across a report by the consulting group Analysys >> Mason >> entitled "A telecommunication competition market study in Kenya". >> Readers >> will recall that these consultants were retained by the market >> regulator >> – >> the Communications Authority of Kenya – to conduct a study whose >> results >> were to inform the crafting of a new framework for regulating abuse >> of >> market dominance by the big players. >> >> >> As expected, one of the key findings of this study is that >> Safaricom’s >> market share in both the mobile communications and mobile money >> segments >> far >> exceed the thresholds where firms are typically presumed to be >> dominant." >> >> >> http://www.nation.co.ke/oped/Opinion/consumer-protection-a-means-of-cutting-... >> >> >> >> Best regards >> >> >> Githaiga, Grace >> >> >> Co-Convenor >> Kenya ICT Action Network (KICTANet) >> Twitter:@ggithaiga >> Tel: 254722701495 >> Skype: gracegithaiga >> Alternate email: ggithaiga@hotmail.com >> Linkedin: https://www.linkedin.com/in/gracegithaiga >> www.kictanet.or.ke >> >> "Change only happens when ordinary people get involved, get engaged >> and >> come >> together to demand it. I am asking you to believe. Not in my ability >> to >> bring about change – but in yours"---Barrack Obama. >> >> >> >> _______________________________________________ >> kictanet mailing list >> kictanet@lists.kictanet.or.ke >> https://lists.kictanet.or.ke/mailman/listinfo/kictanet >> Twitter: http://twitter.com/kictanet >> Facebook: https://www.facebook.com/KICTANet/ >> >> Unsubscribe or change your options at >> https://lists.kictanet.or.ke/mailman/options/kictanet/kivuva%40transworldafr... >> >> 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 > Twitter: http://twitter.com/kictanet > Facebook: https://www.facebook.com/KICTANet/ > > Unsubscribe or change your options at > https://lists.kictanet.or.ke/mailman/options/kictanet/info%40alyhussein.com > > The Kenya ICT Action Network (KICTANet) is a multi-stakeholder > platform > for people and institutions interested and involved in ICT policy and > regulation. The network aims to act as a catalyst for reform in the > ICT > sector in support of the national aim of ICT enabled growth and > development. > > KICTANetiquette : Adhere to the same standards of acceptable > behaviors > online that you follow in real life: respect people's times and > bandwidth, > share knowledge, don't flame or abuse or personalize, respect > privacy, > do > not spam, do not market your wares or qualifications.

-- Barrack O. Otieno +254721325277 +254733206359 Skype: barrack.otieno PGP ID: 0x2611D86A

-- Barrack O. Otieno +254721325277 +254733206359 Skype: barrack.otieno PGP ID: 0x2611D86A

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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.

-- Barrack O. Otieno +254721325277 +254733206359 Skype: barrack.otieno PGP ID: 0x2611D86A

_______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke https://lists.kictanet.or.ke/mailman/listinfo/kictanet Twitter: http://twitter.com/kictanet Facebook: https://www.facebook.com/KICTANet/

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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.

Interesting debate… I would agree with Ali on nurturing the ndogo-ndogos (read zukus, jamiis etc) that are upcoming. However I would rather let the bwana kubwa – Safcom be, the market has a way to trim bwana kubwa to size – Nokia is a good example. From: Walubengo J via kictanet Sent: Wednesday, February 22, 2017 11:29 AM To: twahuq@gmail.com Cc: Walubengo J Subject: Re: [kictanet]Consumer protection a means of cutting Safaricom’s dominance @Barrack, Unlike columnist Jaindi, i dont have the benefit of the leaked dominance report.  So unable to confidently take a position on the report. However, I partly agree with Ali that the market has changed since the KPTC days (of the 1990s). Safaricom, just like Airtel and others may have been telecommunication companies then, but today they are more of ICT companies than they are traditional telcos (read voice providers).   The regulatory instruments and parameters for managing telcos in the 90s/early 2000s are therefore inadequate in dealing with todays dynamic ICT/Internet environment. There is need to have new regulatory instruments that can adequately interrogate todays ICT markets. So once I get the dominance report, I would be keen to understand whether the Consultants recommendations are informed by a  telco-focused regulatory instruments or are based on the new ICT realities. So in answering @Barrack, it is difficult to tell whether splitting Safcom is good or not, unless we understand what were the methodologies used to arrive at such decisions. So I hope Racheal/CA will give us the detailed official report sooner, rather than later. walu. From: Ali Hussein via kictanet <kictanet@lists.kictanet.or.ke> To: jwalu@yahoo.com Cc: Ali Hussein <ali@hussein.me.ke>; KICTAnet ICT Policy Discussions <kictanet@lists.kictanet.or.ke> Sent: Wednesday, February 22, 2017 6:18 AM Subject: Re: [kictanet] Consumer protection a means of cutting Safaricom’s dominance Barrack Im one of those old enough to remember. :-) However my take is this:- The markets have evolved so much and the dynamics of innovation, the market place and the consumer changed so much that the the Heavy Hand of Regulation must now be tampered by the light touch of nurturing and encouraging innovation and the market players to act and behave in a responsible manner. Failure to which the Market will deal with them in a most ruthless manner. The market won't break you up. It will decimate you and leave you for the dead. Just ask Telkom Kenya, Posta, Nokia and other once 'Dominant' global players. I think we are focusing on the wrong things. By all means, keep a leash on the lean, mean fighting machine that is Safaricom. But also nurture home grown players -The PesaPals, the Cellulant, the WayaWayas, the Anganis, the Zuku's and Jamiis to ensure that we build such a deep bench of players that this Dominance conversation will be placed where it belongs - in the dustbins of history. Ali Hussein Principal Hussein & Associates +254 0713 601113  Twitter: @AliHKassim Skype: abu-jomo LinkedIn: http://ke.linkedin.com/in/alihkassim "We are what we repeatedly do. Excellence, therefore, is not an act but a habit."  ~ Aristotle Sent from my iPad On 22 Feb 2017, at 5:27 AM, Barrack Otieno <otieno.barrack@gmail.com> wrote: Hi colleagues, I need an explanation like a two year old on this whole dominance debate. Maybe Walu can help me here. Safaricom was a subsidiary of Telkom Kenya focused on the mobile phone (GSM) Segment. Looking back into the past and as a result of Liberization, the then giant Kenya Posts and Telecommunications Corporation was split into , Telkom Kenya, Communications Authority of Kenya (CCK then as the regulator and Posta to handle the post office. We need to step back and interrogate the real reasons as to why Progress of Telkom Kenya and Posta has backfired in a maximum of ten bullet points. On the other hand, we also need to figure out how Safaricom (a subsidiary of Telkom Kenya which is now a public company bolted out of the stable and became a success). My simple questions: 1. Will a split of Safaricom yield the desired effect? 2. Is it in the interest of Safaricom (the company or organization that is a legally recognized person by the laws of the land to split so as to suit the competition. 3. Can someone share case  studies of where this has worked before? Walu or anyone as old as Kenya Posts and Telecommunication Corporation please help. Following... On 2/22/17, Ali Hussein via kictanet <kictanet@lists.kictanet.or.ke> wrote: @Mwendwa and all it looks like that's what the consultant is suggesting. Here are two other excerpts from the report that I find interesting:- The most draconian of the prescriptions is the proposal to functionally separate M-Pesa from Safaricom. This is tantamount to proposing a break-up of Safaricom because in terms of growth revenues, M-Pesa is on track to reach 50 per cent of the company’s net revenues. The consultants have also proposed what they call “mandatory wallet-to wallet interoperability”, a system where a consumer can keep cloud accounts across the platforms of different mobile companies, making it possible to move and shift money between accounts as one chooses. I have said before and I'm happy to repeat this again. Separating M-Pesa from Safaricom should not be forced on Safaricom. In my humble opinion Safaricom should by now have done this voluntarily as a strategic imperative to transform itself into the De-Facto National (Regional) Mobile Payment System. I think the lost opportunity here can be seen by the KBA launching a rival Mobile Platform called PesaLink. The mandatory 'Wallet to Wallet' interoperability is an interesting angle and needs to seriously be considered. This sort of compliments my point above. They have also recommended a system that they call “agent to agent interoperability”, where agents will be able to support multiple mobile money platforms using what is described in technical language as “a single float”. This is certainly interesting. In as much as this supports the notion of 'User or Customer Experience'  I think the Regulator and the Telcos should work towards ensuring this becomes a reality. In essence this could be a solution to the allegations that Safaricom discourages its agent network from dealing with rival Telcos. Lastly, I would largely concur with Jaindi Ksero's conclusion (sort of) that the Consultant has displayed a lack of knowledge in the functioning of our national payments system. I would however like to add one for the road:- Are our Regulators (CA, CAK and CBK)  prepared to empower, grow and regulate with a light touch the seemingly fluid Telco, Banking, Payments and Fintech Spaces while ensuring that:- a) They embrace innovation and new thinking while protecting National Interests and consumers at the same time? b) They work together without resorting to Turf Wars as evidenced in the tiff between the CA and the CAK in 2015. http://www.businessdailyafrica.com/Corporate-News/Competition--telecoms-watc... c) They consider creating a Joint Task Force to monitor, encourage and empower players in the spaces mentioned to become Regional and Global Players? I have often wondered aloud about the CBK's core mandate of protecting Depositors' funds and wondered (again aloud) whether this mandate is outdated and that it should be expanded to that of becoming an empowering public entity that encourages research, innovation and entrepreneurship in the burgeoning convergence of Banking, Telcos, Payments and Fintech Spaces. d) Regulatory tools need to be rebooted and upgraded to reflect the times. The current scenarios are such that one doesn't even know anymore which industry one operates in. This is a plea for the Regulation Mandates to drastically change and embrace the now and the future. Can the Future Czars step up? Ali Hussein Principal Hussein & Associates +254 0713 601113 Twitter: @AliHKassim Skype: abu-jomo LinkedIn: http://ke.linkedin.com/in/alihkassim "We are what we repeatedly do. Excellence, therefore, is not an act but a habit."  ~ Aristotle Sent from my iPad On 21 Feb 2017, at 11:12 PM, Mwendwa Kivuva via kictanet <kictanet@lists.kictanet.or.ke> wrote: So technically, we want to break up Safaricom so that these companies can gain some traction  "Airtel, has made cumulative debt to date of Sh51 billion, according to latest audited accounts for the financial year 2015. Indeed, in the league of loss makers, only Kenya Airways, with their Sh54 billion lost in the most recent years, compares to Airtel. As a matter of fact, the numbers in the company’s annual accounts show that Airtel is insolvent and only surviving on life support from the parent company in India. Safaricom’s only other rival, Orange Telkom, has gone through exceedingly difficult trading and financial conditions over the past decade. This a firm that is technically insolvent. It has gone through several episodes of restructuring that have not materially changed its circumstances." ______________________ Mwendwa Kivuva, Nairobi, Kenya twitter.com/lordmwesh On 21 February 2017 at 23:48, Grace Githaiga via kictanet <kictanet@lists.kictanet.or.ke> wrote: Jaindi Kisero gives us a glimpse of the competition study in the telecommunication sub-sector undertaken by Ms Analysys Mason on behalf of CA. See full article: "I recently came across a report by the consulting group Analysys Mason entitled "A telecommunication competition market study in Kenya". Readers will recall that these consultants were retained by the market regulator – the Communications Authority of Kenya – to conduct a study whose results were to inform the crafting of a new framework for regulating abuse of market dominance by the big players. As expected, one of the key findings of this study is that Safaricom’s market share in both the mobile communications and mobile money segments far exceed the thresholds where firms are typically presumed to be dominant." http://www.nation.co.ke/oped/Opinion/consumer-protection-a-means-of-cutting-... Best regards Githaiga, Grace Co-Convenor Kenya ICT Action Network (KICTANet) Twitter:@ggithaiga Tel: 254722701495 Skype: gracegithaiga Alternate email: ggithaiga@hotmail.com Linkedin: https://www.linkedin.com/in/gracegithaiga www.kictanet.or.ke "Change only happens when ordinary people get involved, get engaged and come together to demand it. I am asking you to believe. Not in my ability to bring about change – but in yours"---Barrack Obama. _______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke https://lists.kictanet.or.ke/mailman/listinfo/kictanet Twitter: http://twitter.com/kictanet Facebook: https://www.facebook.com/KICTANet/ Unsubscribe or change your options at https://lists.kictanet.or.ke/mailman/options/kictanet/kivuva%40transworldafr... 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 Twitter: http://twitter.com/kictanet Facebook: https://www.facebook.com/KICTANet/ Unsubscribe or change your options at https://lists.kictanet.or.ke/mailman/options/kictanet/info%40alyhussein.com The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development. KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications. -- Barrack O. Otieno +254721325277 +254733206359 Skype: barrack.otieno PGP ID: 0x2611D86A _______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke https://lists.kictanet.or.ke/mailman/listinfo/kictanet Twitter: http://twitter.com/kictanet Facebook: https://www.facebook.com/KICTANet/ Unsubscribe or change your options at https://lists.kictanet.or.ke/mailman/options/kictanet/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.

Well Kanini being restrained and dominating are good things given in equal measure - pun intended!! Research has shown that several factors influence a company’s ability to retain market leadership, among them technological innovation, changes in market structure, short product life cycles, capital strength and promotional prowess. However, one critical factor has largely been ignored: the psychological forces that drive decisions consumers make and, specifically, the degree to which people feel they have choices. Once people have learned a company’s unique technology interface, they become more efficient using that interface and are often reluctant to switch to competing products that require new skills or allow for only limited transfer of current skills. As companies such as Microsoft have demonstrated with its Windows operating system and Office software, early movers with dominant market shares are in an ideal position to provide customers with interface-specific experience that creates this type of competitive advantage. Studies have shown that once consumers learn to use a particular interface, they are reluctant to switch. Psychological reactance works like this: As people learn to use a particular electronic interface associated with information search or online shopping, for example, they often become locked in and develop extremely high levels of loyalty even when otherwise equivalent competitors are available; the cost of switching outweighs the benefit of using another product. However, research indicates that the depth of loyalty weakens when consumers feel that their freedom to choose is restricted. Specifically, as people feel that their choice is constrained and that one interface dominates the market, they react against the constraint by turning away from the market leader’s offering, thereby subjecting themselves to the associated costs of switching. This also the reason why Microsoft, invested $150 million in Apple in 1997 to ensure its survival (and thereby giving consumers a real choice in operating systems), this may have taken an important step toward maintaining its dominance in its core PC markets - well Safcom ball is in your court.. A complex set of factors affects the choices that consumers make in rapidly evolving markets such as mobile apps, social networks and other emerging electronic interfaces. Aggressive players respond by focusing on product development, branding and rapidly gaining critical mass. research suggests that an important driver of consumer loyalty is the extent to which individuals feel that they have a choice in the interface they use, and that psychological reactance can have substantial effects on both consumer preferences and market shares. Behavioural analytics is becoming a key cog in understanding markets - this was used extensively used by Ted Cruz's campaign and later Trump, this will be an interesting phase we are getting into. E Njoroge Mwangi Technology| FINTECH | Big Data Cell +44 7539372742 Skype: Erick.mwangi On Wed, Feb 22, 2017 at 9:54 AM, kanini mutemi via kictanet < kictanet@lists.kictanet.or.ke> wrote:

Not to be the forbearing wife in an abusive relationship (they run through my bundles too fast😡 ​)

Obtaining a dominant position isn't unlawful where the dominant position has been achieved genuinely through hardwork, superiority of products and services and an interplay of supply and demand. What is unlawful (See Section 24 of the Competition Act) is abuse of the dominant position. Our debate on whether or not Safaricom has a dominant position is futile. What we should interrogate is whether 1. the dominant position (assuming indeed the numbers affirm their dominance) was achieved unlawfully and 2. there have been instances of abuse of such position such as product tying (as the writer claims) and restrictive agreements. If the answer to this is yes then by all means let's have a conversation on equitable remedy and please, make those fines hefty. Again, we casually talk about unfair competition but in which market? There is a need to define the markets that Safaricom (and M-Pesa) operate in and see real figures on market share in these markets.

It is very tempting to approach this topic emotionally and I think that's the trap the trial judge in US v Microsoft fell in when he ordered that Microsoft be split to two. Well in that case there were instances of abuse, I digress. Legislative (see Midiwo's Bill) and regulatory efforts may sound like a good idea now but what happens when our home grown companies finally make it? Will we subject them to similar vilification? I get the angle on consumer protection but is it really the consumer we are protecting or are we just mad that one company made it while others still struggle? I'd like us to graduate the discussion to whether a lot of what Safaricom does amounts to abuse of dominant position. For example- the new product by PharmAccess, M-Tiba. You're telling me that for me to get services from one product (M-Tiba) I have to subscribe for another product (Safaricom). Am I the only one for whom this raises red flags?

Tarehe Jumatano, Feb 22, 2017 saa 12:22 Twahir Hussein Kassim via kictanet <kictanet@lists.kictanet.or.ke> aliandika:

...

Interesting debate…

I would agree with Ali on nurturing the *ndogo-ndogos* (read zukus, jamiis etc) that are upcoming. However I would rather let the *bwana kubwa* – Safcom be, the market has a way to trim *bwana kubwa* to size – Nokia is a good example.

*From: *Walubengo J via kictanet <kictanet@lists.kictanet.or.ke> *Sent: *Wednesday, February 22, 2017 11:29 AM *To: *twahuq@gmail.com *Cc: *Walubengo J <jwalu@yahoo.com>

*Subject: *Re: [kictanet]Consumer protection a means of cutting Safaricom’s dominance

@Barrack,

Unlike columnist Jaindi, i dont have the benefit of the leaked dominance report. So unable to confidently take a position on the report.

However, I partly agree with Ali that the market has changed since the KPTC days (of the 1990s). Safaricom, just like Airtel and others may have been telecommunication companies then, but today they are more of ICT companies than they are traditional telcos (read voice providers).

The regulatory instruments and parameters for managing telcos in the 90s/early 2000s are therefore inadequate in dealing with todays dynamic ICT/Internet environment. There is need to have new regulatory instruments that can adequately interrogate todays ICT markets.

So once I get the dominance report, I would be keen to understand whether the Consultants recommendations are informed by a telco-focused regulatory instruments or are based on the new ICT realities. So in answering @Barrack, it is difficult to tell whether splitting Safcom is good or not, unless we understand what were the methodologies used to arrive at such decisions.

So I hope Racheal/CA will give us the detailed official report sooner, rather than later.

walu.

*From:* Ali Hussein via kictanet <kictanet@lists.kictanet.or.ke> *To:* jwalu@yahoo.com *Cc:* Ali Hussein <ali@hussein.me.ke>; KICTAnet ICT Policy Discussions < kictanet@lists.kictanet.or.ke> *Sent:* Wednesday, February 22, 2017 6:18 AM *Subject:* Re: [kictanet] Consumer protection a means of cutting Safaricom’s dominance

Barrack

Im one of those old enough to remember. :-)

However my take is this:-

The markets have evolved so much and the dynamics of innovation, the market place and the consumer changed so much that the the Heavy Hand of Regulation must now be tampered by the light touch of nurturing and encouraging innovation and the market players to act and behave in a responsible manner. Failure to which the Market will deal with them in a most ruthless manner. The market won't break you up. It will decimate you and leave you for the dead. Just ask Telkom Kenya, Posta, Nokia and other once 'Dominant' global players.

I think we are focusing on the wrong things. By all means, keep a leash on the lean, mean fighting machine that is Safaricom. But also nurture home grown players -The PesaPals, the Cellulant, the WayaWayas, the Anganis, the Zuku's and Jamiis to ensure that we build such a deep bench of players that this Dominance conversation will be placed where it belongs - in the dustbins of history.

*Ali Hussein*

*Principal*

*Hussein & Associates*

+254 0713 601113 <+254%20713%20601113>

Twitter: @AliHKassim

Skype: abu-jomo

LinkedIn: http://ke.linkedin.com/in/alihkassim

"We are what we repeatedly do. Excellence, therefore, is not an act but a habit." ~ Aristotle

Sent from my iPad

On 22 Feb 2017, at 5:27 AM, Barrack Otieno <otieno.barrack@gmail.com> wrote:

Hi colleagues,

I need an explanation like a two year old on this whole dominance debate. Maybe Walu can help me here. Safaricom was a subsidiary of Telkom Kenya focused on the mobile phone (GSM) Segment. Looking back into the past and as a result of Liberization, the then giant Kenya Posts and Telecommunications Corporation was split into , Telkom Kenya, Communications Authority of Kenya (CCK then as the regulator and Posta to handle the post office. We need to step back and interrogate the real reasons as to why Progress of Telkom Kenya and Posta has backfired in a maximum of ten bullet points. On the other hand, we also need to figure out how Safaricom (a subsidiary of Telkom Kenya which is now a public company bolted out of the stable and became a success). My simple questions:

1. Will a split of Safaricom yield the desired effect? 2. Is it in the interest of Safaricom (the company or organization that is a legally recognized person by the laws of the land to split so as to suit the competition. 3. Can someone share case studies of where this has worked before?

Walu or anyone as old as Kenya Posts and Telecommunication Corporation please help.

Following...

On 2/22/17, Ali Hussein via kictanet <kictanet@lists.kictanet.or.ke> wrote:

@Mwendwa and all

it looks like that's what the consultant is suggesting.

Here are two other excerpts from the report that I find interesting:-

The most draconian of the prescriptions is the proposal to functionally

separate M-Pesa from Safaricom. This is tantamount to proposing a break-up

of Safaricom because in terms of growth revenues, M-Pesa is on track to

reach 50 per cent of the company’s net revenues. The consultants have also

proposed what they call “mandatory wallet-to wallet interoperability”, a

system where a consumer can keep cloud accounts across the platforms of

different mobile companies, making it possible to move and shift money

between accounts as one chooses.

I have said before and I'm happy to repeat this again. Separating M-Pesa

from Safaricom should not be forced on Safaricom. In my humble opinion

Safaricom should by now have done this voluntarily as a strategic imperative

to transform itself into the De-Facto National (Regional) Mobile Payment

System. I think the lost opportunity here can be seen by the KBA launching a

rival Mobile Platform called PesaLink.

The mandatory 'Wallet to Wallet' interoperability is an interesting angle

and needs to seriously be considered. This sort of compliments my point

above.

They have also recommended a system that they call “agent to agent

interoperability”, where agents will be able to support multiple mobile

money platforms using what is described in technical language as “a single

float”.

This is certainly interesting. In as much as this supports the notion of

'User or Customer Experience' I think the Regulator and the Telcos should

work towards ensuring this becomes a reality. In essence this could be a

solution to the allegations that Safaricom discourages its agent network

from dealing with rival Telcos.

Lastly, I would largely concur with Jaindi Ksero's conclusion (sort of) that

the Consultant has displayed a lack of knowledge in the functioning of our

national payments system. I would however like to add one for the road:-

Are our Regulators (CA, CAK and CBK) prepared to empower, grow and regulate

with a light touch the seemingly fluid Telco, Banking, Payments and Fintech

Spaces while ensuring that:-

a) They embrace innovation and new thinking while protecting National

Interests and consumers at the same time?

b) They work together without resorting to Turf Wars as evidenced in the

tiff between the CA and the CAK in 2015.

http://www.businessdailyafrica.com/Corporate-News/Competitio n--telecoms-watchdogs-to-seek-truce-over-Safaricom-/539550- 2707286-lqu5sez/index.html

c) They consider creating a Joint Task Force to monitor, encourage and

empower players in the spaces mentioned to become Regional and Global

Players? I have often wondered aloud about the CBK's core mandate of

protecting Depositors' funds and wondered (again aloud) whether this mandate

is outdated and that it should be expanded to that of becoming an empowering

public entity that encourages research, innovation and entrepreneurship in

the burgeoning convergence of Banking, Telcos, Payments and Fintech Spaces.

d) Regulatory tools need to be rebooted and upgraded to reflect the times.

The current scenarios are such that one doesn't even know anymore which

industry one operates in.

This is a plea for the Regulation Mandates to drastically change and embrace

the now and the future.

Can the Future Czars step up?

Ali Hussein

Principal

Hussein & Associates

+254 0713 601113 <+254%20713%20601113>

Twitter: @AliHKassim

Skype: abu-jomo

LinkedIn: http://ke.linkedin.com/in/alihkassim

"We are what we repeatedly do. Excellence, therefore, is not an act but a

habit." ~ Aristotle

Sent from my iPad

On 21 Feb 2017, at 11:12 PM, Mwendwa Kivuva via kictanet

<kictanet@lists.kictanet.or.ke> wrote:

So technically, we want to break up Safaricom so that these companies

can gain some traction "Airtel, has made cumulative debt to date of

Sh51 billion, according to latest audited accounts for the financial

year 2015. Indeed, in the league of loss makers, only Kenya Airways,

with their Sh54 billion lost in the most recent years, compares to

Airtel. As a matter of fact, the numbers in the company’s annual

accounts show that Airtel is insolvent and only surviving on life

support from the parent company in India. Safaricom’s only other

rival, Orange Telkom, has gone through exceedingly difficult trading

and financial conditions over the past decade. This a firm that is

technically insolvent. It has gone through several episodes of

restructuring that have not materially changed its circumstances."

______________________

Mwendwa Kivuva, Nairobi, Kenya

twitter.com/lordmwesh

On 21 February 2017 at 23:48, Grace Githaiga via kictanet

<kictanet@lists.kictanet.or.ke> wrote:

Jaindi Kisero gives us a glimpse of the competition study in the

telecommunication sub-sector undertaken by Ms Analysys Mason on behalf

of

CA. See full article:

"I recently came across a report by the consulting group Analysys Mason

entitled "A telecommunication competition market study in Kenya".

Readers

will recall that these consultants were retained by the market regulator

–

the Communications Authority of Kenya – to conduct a study whose results

were to inform the crafting of a new framework for regulating abuse of

market dominance by the big players.

As expected, one of the key findings of this study is that Safaricom’s

market share in both the mobile communications and mobile money segments

far

exceed the thresholds where firms are typically presumed to be

dominant."

http://www.nation.co.ke/oped/Opinion/consumer-protection-a-m eans-of-cutting-safaricom-dominance/440808-3822560-jsmlpbz/index.html

Best regards

Githaiga, Grace

Co-Convenor

Kenya ICT Action Network (KICTANet)

Twitter:@ggithaiga

Tel: 254722701495

Skype: gracegithaiga

Alternate email: ggithaiga@hotmail.com

Linkedin: https://www.linkedin.com/in/gracegithaiga

www.kictanet.or.ke

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come

together to demand it. I am asking you to believe. Not in my ability to

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Not trying to be too simplistic, but this cartoon <http://gadocartoons.com/safcom-dominance/?utm_content=buffer6c463&utm_medium=social&utm_source=facebook.com&utm_campaign=buffer> says a lot about what is happening in this market. #Safcom_dominance. http://gadocartoons.com/safcom-dominance/?utm_content=buffer6c463&utm_medium=social&utm_source=facebook.com&utm_campaign=buffer Nelson Kwaje Team Leader WEB4ALL Ltd On 22/02/2017 01:53 WB, Erick Mwangi via kictanet wrote:

Well Kanini being restrained and dominating are good things given in equal measure - pun intended!!

Research has shown that several factors influence a company’s ability to retain market leadership, among them technological innovation, changes in market structure, short product life cycles, capital strength and promotional prowess. However, one critical factor has largely been ignored: the psychological forces that drive decisions consumers make and, specifically, the degree to which people feel they have choices. Once people have learned a company’s unique technology interface, they become more efficient using that interface and are often reluctant to switch to competing products that require new skills or allow for only limited transfer of current skills. As companies such as Microsoft have demonstrated with its Windows operating system and Office software, early movers with dominant market shares are in an ideal position to provide customers with interface-specific experience that creates this type of competitive advantage.

Studies have shown that once consumers learn to use a particular interface, they are reluctant to switch.

Psychological reactance works like this: As people learn to use a particular electronic interface associated with information search or online shopping, for example, they often become locked in and develop extremely high levels of loyalty even when otherwise equivalent competitors are available; the cost of switching outweighs the benefit of using another product. However, research indicates that the depth of loyalty weakens when consumers feel that their freedom to choose is restricted. Specifically, as people feel that their choice is constrained and that one interface dominates the market, they react against the constraint by turning away from the market leader’s offering, thereby subjecting themselves to the associated costs of switching.

This also the reason why Microsoft, invested $150 million in Apple in 1997 to ensure its survival (and thereby giving consumers a real choice in operating systems), this may have taken an important step toward maintaining its dominance in its core PC markets - well Safcom ball is in your court..

A complex set of factors affects the choices that consumers make in rapidly evolving markets such as mobile apps, social networks and other emerging electronic interfaces. Aggressive players respond by focusing on product development, branding and rapidly gaining critical mass. research suggests that an important driver of consumer loyalty is the extent to which individuals feel that they have a choice in the interface they use, and that psychological reactance can have substantial effects on both consumer preferences and market shares.

Behavioural analytics is becoming a key cog in understanding markets - this was used extensively used by Ted Cruz's campaign and later Trump, this will be an interesting phase we are getting into.

E Njoroge Mwangi Technology| FINTECH | Big Data

Cell +44 7539372742 Skype: Erick.mwangi

On Wed, Feb 22, 2017 at 9:54 AM, kanini mutemi via kictanet <kictanet@lists.kictanet.or.ke <mailto:kictanet@lists.kictanet.or.ke>> wrote:

Not to be the forbearing wife in an abusive relationship (they run through my bundles too fast😡 ​)

Obtaining a dominant position isn't unlawful where the dominant position has been achieved genuinely through hardwork, superiority of products and services and an interplay of supply and demand. What is unlawful (See Section 24 of the Competition Act) is abuse of the dominant position. Our debate on whether or not Safaricom has a dominant position is futile. What we should interrogate is whether 1. the dominant position (assuming indeed the numbers affirm their dominance) was achieved unlawfully and 2. there have been instances of abuse of such position such as product tying (as the writer claims) and restrictive agreements. If the answer to this is yes then by all means let's have a conversation on equitable remedy and please, make those fines hefty. Again, we casually talk about unfair competition but in which market? There is a need to define the markets that Safaricom (and M-Pesa) operate in and see real figures on market share in these markets.

It is very tempting to approach this topic emotionally and I think that's the trap the trial judge in US v Microsoft fell in when he ordered that Microsoft be split to two. Well in that case there were instances of abuse, I digress. Legislative (see Midiwo's Bill) and regulatory efforts may sound like a good idea now but what happens when our home grown companies finally make it? Will we subject them to similar vilification? I get the angle on consumer protection but is it really the consumer we are protecting or are we just mad that one company made it while others still struggle? I'd like us to graduate the discussion to whether a lot of what Safaricom does amounts to abuse of dominant position. For example- the new product by PharmAccess, M-Tiba. You're telling me that for me to get services from one product (M-Tiba) I have to subscribe for another product (Safaricom). Am I the only one for whom this raises red flags?

Tarehe Jumatano, Feb 22, 2017 saa 12:22 Twahir Hussein Kassim via kictanet <kictanet@lists.kictanet.or.ke <mailto:kictanet@lists.kictanet.or.ke>> aliandika:

Interesting debate…

I would agree with Ali on nurturing the */ndogo-ndogos/* (read zukus, jamiis etc) that are upcoming. However I would rather let the */bwana kubwa/* – Safcom be, the market has a way to trim */bwana kubwa/* to size – Nokia is a good example.

*From: *Walubengo J via kictanet <mailto:kictanet@lists.kictanet.or.ke> *Sent: *Wednesday, February 22, 2017 11:29 AM *To: *twahuq@gmail.com <mailto:twahuq@gmail.com> *Cc: *Walubengo J <mailto:jwalu@yahoo.com>

*Subject: *Re: [kictanet]Consumer protection a means of cutting Safaricom’s dominance

@Barrack,

Unlike columnist Jaindi, i dont have the benefit of the leaked dominance report. So unable to confidently take a position on the report.

However, I partly agree with Ali that the market has changed since the KPTC days (of the 1990s). Safaricom, just like Airtel and others may have been telecommunication companies then, but today they are more of ICT companies than they are traditional telcos (read voice providers).

The regulatory instruments and parameters for managing telcos in the 90s/early 2000s are therefore inadequate in dealing with todays dynamic ICT/Internet environment. There is need to have new regulatory instruments that can adequately interrogate todays ICT markets.

So once I get the dominance report, I would be keen to understand whether the Consultants recommendations are informed by a telco-focused regulatory instruments or are based on the new ICT realities. So in answering @Barrack, it is difficult to tell whether splitting Safcom is good or not, unless we understand what were the methodologies used to arrive at such decisions.

So I hope Racheal/CA will give us the detailed official report sooner, rather than later.

walu.

*From:*Ali Hussein via kictanet <kictanet@lists.kictanet.or.ke <mailto:kictanet@lists.kictanet.or.ke>> *To:* jwalu@yahoo.com <mailto:jwalu@yahoo.com> *Cc:* Ali Hussein <ali@hussein.me.ke <mailto:ali@hussein.me.ke>>; KICTAnet ICT Policy Discussions <kictanet@lists.kictanet.or.ke <mailto:kictanet@lists.kictanet.or.ke>> *Sent:* Wednesday, February 22, 2017 6:18 AM *Subject:* Re: [kictanet] Consumer protection a means of cutting Safaricom’s dominance

Barrack

Im one of those old enough to remember. :-)

However my take is this:-

The markets have evolved so much and the dynamics of innovation, the market place and the consumer changed so much that the the Heavy Hand of Regulation must now be tampered by the light touch of nurturing and encouraging innovation and the market players to act and behave in a responsible manner. Failure to which the Market will deal with them in a most ruthless manner. The market won't break you up. It will decimate you and leave you for the dead. Just ask Telkom Kenya, Posta, Nokia and other once 'Dominant' global players.

I think we are focusing on the wrong things. By all means, keep a leash on the lean, mean fighting machine that is Safaricom. But also nurture home grown players -The PesaPals, the Cellulant, the WayaWayas, the Anganis, the Zuku's and Jamiis to ensure that we build such a deep bench of players that this Dominance conversation will be placed where it belongs - in the dustbins of history.

*Ali Hussein*

*Principal*

*Hussein & Associates*

+254 0713 601113 <tel:+254%20713%20601113>

Twitter: @AliHKassim

Skype: abu-jomo

LinkedIn: http://ke.linkedin.com/in/alihkassim <http://ke.linkedin.com/in/alihkassim>

"We are what we repeatedly do. Excellence, therefore, is not an act but a habit." ~ Aristotle

Sent from my iPad

On 22 Feb 2017, at 5:27 AM, Barrack Otieno <otieno.barrack@gmail.com <mailto:otieno.barrack@gmail.com>> wrote:

Hi colleagues,

I need an explanation like a two year old on this whole dominance debate. Maybe Walu can help me here. Safaricom was a subsidiary of Telkom Kenya focused on the mobile phone (GSM) Segment. Looking back into the past and as a result of Liberization, the then giant Kenya Posts and Telecommunications Corporation was split into , Telkom Kenya, Communications Authority of Kenya (CCK then as the regulator and Posta to handle the post office. We need to step back and interrogate the real reasons as to why Progress of Telkom Kenya and Posta has backfired in a maximum of ten bullet points. On the other hand, we also need to figure out how Safaricom (a subsidiary of Telkom Kenya which is now a public company bolted out of the stable and became a success). My simple questions:

1. Will a split of Safaricom yield the desired effect? 2. Is it in the interest of Safaricom (the company or organization that is a legally recognized person by the laws of the land to split so as to suit the competition. 3. Can someone share case studies of where this has worked before?

Walu or anyone as old as Kenya Posts and Telecommunication Corporation please help.

Following...

On 2/22/17, Ali Hussein via kictanet <kictanet@lists.kictanet.or.ke <mailto:kictanet@lists.kictanet.or.ke>> wrote:

@Mwendwa and all

it looks like that's what the consultant is suggesting.

Here are two other excerpts from the report that I find interesting:-

The most draconian of the prescriptions is the proposal to functionally

separate M-Pesa from Safaricom. This is tantamount to proposing a break-up

of Safaricom because in terms of growth revenues, M-Pesa is on track to

reach 50 per cent of the company’s net revenues. The consultants have also

proposed what they call “mandatory wallet-to wallet interoperability”, a

system where a consumer can keep cloud accounts across the platforms of

different mobile companies, making it possible to move and shift money

between accounts as one chooses.

I have said before and I'm happy to repeat this again. Separating M-Pesa

from Safaricom should not be forced on Safaricom. In my humble opinion

Safaricom should by now have done this voluntarily as a strategic imperative

to transform itself into the De-Facto National (Regional) Mobile Payment

System. I think the lost opportunity here can be seen by the KBA launching a

rival Mobile Platform called PesaLink.

The mandatory 'Wallet to Wallet' interoperability is an interesting angle

and needs to seriously be considered. This sort of compliments my point

above.

They have also recommended a system that they call “agent to agent

interoperability”, where agents will be able to support multiple mobile

money platforms using what is described in technical language as “a single

float”.

This is certainly interesting. In as much as this supports the notion of

'User or Customer Experience' I think the Regulator and the Telcos should

work towards ensuring this becomes a reality. In essence this could be a

solution to the allegations that Safaricom discourages its agent network

from dealing with rival Telcos.

Lastly, I would largely concur with Jaindi Ksero's conclusion (sort of) that

the Consultant has displayed a lack of knowledge in the functioning of our

national payments system. I would however like to add one for the road:-

Are our Regulators (CA, CAK and CBK) prepared to empower, grow and regulate

with a light touch the seemingly fluid Telco, Banking, Payments and Fintech

Spaces while ensuring that:-

a) They embrace innovation and new thinking while protecting National

Interests and consumers at the same time?

b) They work together without resorting to Turf Wars as evidenced in the

tiff between the CA and the CAK in 2015.

http://www.businessdailyafrica.com/Corporate-News/Competition--telecoms-watc... <http://www.businessdailyafrica.com/Corporate-News/Competition--telecoms-watchdogs-to-seek-truce-over-Safaricom-/539550-2707286-lqu5sez/index.html>

c) They consider creating a Joint Task Force to monitor, encourage and

empower players in the spaces mentioned to become Regional and Global

Players? I have often wondered aloud about the CBK's core mandate of

protecting Depositors' funds and wondered (again aloud) whether this mandate

is outdated and that it should be expanded to that of becoming an empowering

public entity that encourages research, innovation and entrepreneurship in

the burgeoning convergence of Banking, Telcos, Payments and Fintech Spaces.

d) Regulatory tools need to be rebooted and upgraded to reflect the times.

The current scenarios are such that one doesn't even know anymore which

industry one operates in.

This is a plea for the Regulation Mandates to drastically change and embrace

the now and the future.

Can the Future Czars step up?

Ali Hussein

Principal

Hussein & Associates

+254 0713 601113 <tel:+254%20713%20601113>

Twitter: @AliHKassim

Skype: abu-jomo

LinkedIn: http://ke.linkedin.com/in/alihkassim <http://ke.linkedin.com/in/alihkassim>

"We are what we repeatedly do. Excellence, therefore, is not an act but a

habit." ~ Aristotle

Sent from my iPad

On 21 Feb 2017, at 11:12 PM, Mwendwa Kivuva via kictanet

<kictanet@lists.kictanet.or.ke <mailto:kictanet@lists.kictanet.or.ke>> wrote:

So technically, we want to break up Safaricom so that these companies

can gain some traction "Airtel, has made cumulative debt to date of

Sh51 billion, according to latest audited accounts for the financial

year 2015. Indeed, in the league of loss makers, only Kenya Airways,

with their Sh54 billion lost in the most recent years, compares to

Airtel. As a matter of fact, the numbers in the company’s annual

accounts show that Airtel is insolvent and only surviving on life

support from the parent company in India. Safaricom’s only other

rival, Orange Telkom, has gone through exceedingly difficult trading

and financial conditions over the past decade. This a firm that is

technically insolvent. It has gone through several episodes of

restructuring that have not materially changed its circumstances."

______________________

Mwendwa Kivuva, Nairobi, Kenya

twitter.com/lordmwesh <http://twitter.com/lordmwesh>

On 21 February 2017 at 23:48, Grace Githaiga via kictanet

<kictanet@lists.kictanet.or.ke <mailto:kictanet@lists.kictanet.or.ke>> wrote:

Jaindi Kisero gives us a glimpse of the competition study in the

telecommunication sub-sector undertaken by Ms Analysys Mason on behalf

of

CA. See full article:

"I recently came across a report by the consulting group Analysys Mason

entitled "A telecommunication competition market study in Kenya".

Readers

will recall that these consultants were retained by the market regulator

–

the Communications Authority of Kenya – to conduct a study whose results

were to inform the crafting of a new framework for regulating abuse of

market dominance by the big players.

As expected, one of the key findings of this study is that Safaricom’s

market share in both the mobile communications and mobile money segments

far

exceed the thresholds where firms are typically presumed to be

dominant."

http://www.nation.co.ke/oped/Opinion/consumer-protection-a-means-of-cutting-... <http://www.nation.co.ke/oped/Opinion/consumer-protection-a-means-of-cutting-safaricom-dominance/440808-3822560-jsmlpbz/index.html>

Best regards

Githaiga, Grace

Co-Convenor

Kenya ICT Action Network (KICTANet)

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Thank you bwana Wambua, Your input will help us understand the issue in a better way. Regards On Feb 22, 2017 1:31 PM, "Wambua, Christopher via kictanet" < kictanet@lists.kictanet.or.ke> wrote:

Listers

I wish to confirm that the consultant, M/s Analysys Mason, has submitted the draft findings of the study on *Assessment of competition in the telecommunications sub-sector* to the Authority. Currently, the draft report is undergoing internal review. Once this process is completed, we shall be happy to share the reviewed draft findings with the community for comments and further input as part of stakeholder consultation process.

We, therefore, urge for your patience to allow for the ongoing internal processes to be completed.

*Christopher Wambua*

Ag. Director/Consumer and Public Affairs | Consumer and Public Affairs

Tel: +254 20 4242000 <020%204242000>/209

Mobile: +254 703 042209 <0703%20042209>/

+254 730172209 <0730%20172209>

P.O. Box 14448 Nairobi 00800

wambua@ca.go.ke Communications Authority of Kenya <https://www.facebook.com/CAOKenya?ref=hl> ca_kenya <https://twitter.com/CA_Kenya>www.ca.go.ke <http://www.ca.go.ke/>

*Disclaimer:* This email and any files transmitted with it are confidential and intended solely for the use by the individual(s) or entity to whom it is addressed to. If you are not the intended recipient, you are notified that disclosing, copying, distributing or taking any action in reliance on the contents of this information is strictly prohibited. Additionally, if you have received this email in error please notify the sender immediately by a reply e-mail.

From: kictanet <kictanet-bounces+wambua=ca.go.ke@lists.kictanet.or.ke> on behalf of KICTAnet Discussions <kictanet@lists.kictanet.or.ke> Reply-To: Walubengo J <jwalu@yahoo.com>, KICTAnet Discussions < kictanet@lists.kictanet.or.ke> Date: Wednesday, February 22, 2017 at 11:28 AM To: Christoper Wambua <wambua@ca.go.ke> Cc: Walubengo J <jwalu@yahoo.com> Subject: Re: [kictanet] Consumer protection a means of cutting Safaricom’s dominance

@Barrack,

Unlike columnist Jaindi, i dont have the benefit of the leaked dominance report. So unable to confidently take a position on the report.

However, I partly agree with Ali that the market has changed since the KPTC days (of the 1990s). Safaricom, just like Airtel and others may have been telecommunication companies then, but today they are more of ICT companies than they are traditional telcos (read voice providers).

The regulatory instruments and parameters for managing telcos in the 90s/early 2000s are therefore inadequate in dealing with todays dynamic ICT/Internet environment. There is need to have new regulatory instruments that can adequately interrogate todays ICT markets.

So once I get the dominance report, I would be keen to understand whether the Consultants recommendations are informed by a telco-focused regulatory instruments or are based on the new ICT realities. So in answering @Barrack, it is difficult to tell whether splitting Safcom is good or not, unless we understand what were the methodologies used to arrive at such decisions.

So I hope Racheal/CA will give us the detailed official report sooner, rather than later.

walu.

------------------------------ *From:* Ali Hussein via kictanet <kictanet@lists.kictanet.or.ke> *To:* jwalu@yahoo.com *Cc:* Ali Hussein <ali@hussein.me.ke>; KICTAnet ICT Policy Discussions < kictanet@lists.kictanet.or.ke> *Sent:* Wednesday, February 22, 2017 6:18 AM *Subject:* Re: [kictanet] Consumer protection a means of cutting Safaricom’s dominance

Barrack

Im one of those old enough to remember. :-)

However my take is this:-

The markets have evolved so much and the dynamics of innovation, the market place and the consumer changed so much that the the Heavy Hand of Regulation must now be tampered by the light touch of nurturing and encouraging innovation and the market players to act and behave in a responsible manner. Failure to which the Market will deal with them in a most ruthless manner. The market won't break you up. It will decimate you and leave you for the dead. Just ask Telkom Kenya, Posta, Nokia and other once 'Dominant' global players.

I think we are focusing on the wrong things. By all means, keep a leash on the lean, mean fighting machine that is Safaricom. But also nurture home grown players -The PesaPals, the Cellulant, the WayaWayas, the Anganis, the Zuku's and Jamiis to ensure that we build such a deep bench of players that this Dominance conversation will be placed where it belongs - in the dustbins of history.

*Ali Hussein* *Principal* *Hussein & Associates* +254 0713 601113 <0713%20601113>

Twitter: @AliHKassim Skype: abu-jomo LinkedIn: http://ke.linkedin.com/in/alihkassim

"We are what we repeatedly do. Excellence, therefore, is not an act but a habit." ~ Aristotle

Sent from my iPad

On 22 Feb 2017, at 5:27 AM, Barrack Otieno <otieno.barrack@gmail.com> wrote:

Hi colleagues,

I need an explanation like a two year old on this whole dominance debate. Maybe Walu can help me here. Safaricom was a subsidiary of Telkom Kenya focused on the mobile phone (GSM) Segment. Looking back into the past and as a result of Liberization, the then giant Kenya Posts and Telecommunications Corporation was split into , Telkom Kenya, Communications Authority of Kenya (CCK then as the regulator and Posta to handle the post office. We need to step back and interrogate the real reasons as to why Progress of Telkom Kenya and Posta has backfired in a maximum of ten bullet points. On the other hand, we also need to figure out how Safaricom (a subsidiary of Telkom Kenya which is now a public company bolted out of the stable and became a success). My simple questions:

1. Will a split of Safaricom yield the desired effect? 2. Is it in the interest of Safaricom (the company or organization that is a legally recognized person by the laws of the land to split so as to suit the competition. 3. Can someone share case studies of where this has worked before?

Walu or anyone as old as Kenya Posts and Telecommunication Corporation please help.

Following...

On 2/22/17, Ali Hussein via kictanet <kictanet@lists.kictanet.or.ke> wrote:

@Mwendwa and all

it looks like that's what the consultant is suggesting.

Here are two other excerpts from the report that I find interesting:-

The most draconian of the prescriptions is the proposal to functionally

separate M-Pesa from Safaricom. This is tantamount to proposing a break-up

of Safaricom because in terms of growth revenues, M-Pesa is on track to

reach 50 per cent of the company’s net revenues. The consultants have also

proposed what they call “mandatory wallet-to wallet interoperability”, a

system where a consumer can keep cloud accounts across the platforms of

different mobile companies, making it possible to move and shift money

between accounts as one chooses.

I have said before and I'm happy to repeat this again. Separating M-Pesa

from Safaricom should not be forced on Safaricom. In my humble opinion

Safaricom should by now have done this voluntarily as a strategic imperative

to transform itself into the De-Facto National (Regional) Mobile Payment

System. I think the lost opportunity here can be seen by the KBA launching a

rival Mobile Platform called PesaLink.

The mandatory 'Wallet to Wallet' interoperability is an interesting angle

and needs to seriously be considered. This sort of compliments my point

above.

They have also recommended a system that they call “agent to agent

interoperability”, where agents will be able to support multiple mobile

money platforms using what is described in technical language as “a single

float”.

This is certainly interesting. In as much as this supports the notion of

'User or Customer Experience' I think the Regulator and the Telcos should

work towards ensuring this becomes a reality. In essence this could be a

solution to the allegations that Safaricom discourages its agent network

from dealing with rival Telcos.

Lastly, I would largely concur with Jaindi Ksero's conclusion (sort of) that

the Consultant has displayed a lack of knowledge in the functioning of our

national payments system. I would however like to add one for the road:-

Are our Regulators (CA, CAK and CBK) prepared to empower, grow and regulate

with a light touch the seemingly fluid Telco, Banking, Payments and Fintech

Spaces while ensuring that:-

a) They embrace innovation and new thinking while protecting National

Interests and consumers at the same time?

b) They work together without resorting to Turf Wars as evidenced in the

tiff between the CA and the CAK in 2015.

http://www.businessdailyafrica.com/Corporate-News/Competition-- telecoms-watchdogs-to-seek-truce-over-Safaricom-/539550- 2707286-lqu5sez/index.html

c) They consider creating a Joint Task Force to monitor, encourage and

empower players in the spaces mentioned to become Regional and Global

Players? I have often wondered aloud about the CBK's core mandate of

protecting Depositors' funds and wondered (again aloud) whether this mandate

is outdated and that it should be expanded to that of becoming an empowering

public entity that encourages research, innovation and entrepreneurship in

the burgeoning convergence of Banking, Telcos, Payments and Fintech Spaces.

d) Regulatory tools need to be rebooted and upgraded to reflect the times.

The current scenarios are such that one doesn't even know anymore which

industry one operates in.

This is a plea for the Regulation Mandates to drastically change and embrace

the now and the future.

Can the Future Czars step up?

Ali Hussein

Principal

Hussein & Associates

+254 0713 601113 <0713%20601113>

Twitter: @AliHKassim

Skype: abu-jomo

LinkedIn: http://ke.linkedin.com/in/alihkassim

"We are what we repeatedly do. Excellence, therefore, is not an act but a

habit." ~ Aristotle

Sent from my iPad

On 21 Feb 2017, at 11:12 PM, Mwendwa Kivuva via kictanet

<kictanet@lists.kictanet.or.ke> wrote:

So technically, we want to break up Safaricom so that these companies

can gain some traction "Airtel, has made cumulative debt to date of

Sh51 billion, according to latest audited accounts for the financial

year 2015. Indeed, in the league of loss makers, only Kenya Airways,

with their Sh54 billion lost in the most recent years, compares to

Airtel. As a matter of fact, the numbers in the company’s annual

accounts show that Airtel is insolvent and only surviving on life

support from the parent company in India. Safaricom’s only other

rival, Orange Telkom, has gone through exceedingly difficult trading

and financial conditions over the past decade. This a firm that is

technically insolvent. It has gone through several episodes of

restructuring that have not materially changed its circumstances."

______________________

Mwendwa Kivuva, Nairobi, Kenya

twitter.com/lordmwesh

On 21 February 2017 at 23:48, Grace Githaiga via kictanet

<kictanet@lists.kictanet.or.ke> wrote:

Jaindi Kisero gives us a glimpse of the competition study in the

telecommunication sub-sector undertaken by Ms Analysys Mason on behalf

of

CA. See full article:

"I recently came across a report by the consulting group Analysys Mason

entitled "A telecommunication competition market study in Kenya".

Readers

will recall that these consultants were retained by the market regulator

–

the Communications Authority of Kenya – to conduct a study whose results

were to inform the crafting of a new framework for regulating abuse of

market dominance by the big players.

As expected, one of the key findings of this study is that Safaricom’s

market share in both the mobile communications and mobile money segments

far

exceed the thresholds where firms are typically presumed to be

dominant."

http://www.nation.co.ke/oped/Opinion/consumer-protection-a- means-of-cutting-safaricom-dominance/440808-3822560-jsmlpbz/index.html

Best regards

Githaiga, Grace

Co-Convenor

Kenya ICT Action Network (KICTANet)

Twitter:@ggithaiga

Tel: 254722701495 <0722%20701495>

Skype: gracegithaiga

Alternate email: ggithaiga@hotmail.com

Linkedin: https://www.linkedin.com/in/gracegithaiga

www.kictanet.or.ke

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