Re: [kictanet] Safaricom faces M-Pesa break up in market dominance war
GG and all I'm really curious:- 1. This document seemed very loaded. And it seems that it has gone beyond its mandate? Were the Consultants asked to provide recommendations to remedy a 'Dominant' position? it would be good if we could have seen the TOR for this assignment. To quote the article:- 2. Safaricom chief executive Bob Collymore said he had not seen the report, but bristled at the prospect of an external party ordering the company to break up its business. “I am pretty hostile to the idea. We can’t have other people dictating whether we break up our company or not,” he said. Absolutely. I can't blame him for that. It also seems like the Regulator is Regulating Safaricom for the competition not for the consumer - if of course the leaked report is to be believed. Then the leaked document talks about the possibility of splitting M-Pesa from Safaricom but stopping shot of making the split permanent - as in split them but let them remain under one legal entity. In commercial terms this is known as creating 'Chinese Walls'. We all know how that works. IT NEVER WORKS!! Besides which. Breaking up companies is simply a Regulatory tool fit for the AT&Ts, Standard Oils (which by the way is back as one huge conglomerate after being split into more than 50 companies) of this world. 3. This is the information age. The Networked Age, The Millenial Age. The core potential customers don't care about Nationality, colour, creed or whatever else. All they care about is What have you done for me lately? or better still - What can you do for me now? Its clear Safaricom has earned its strips. Remedying market power abuse cannot be to split up the company. The idea that you punish a successful company by cutting it into pieces is preposterous in 2017. 4. CA, we would like to see the report before 'internal' review. We would like to see it before it is edited. This is the age of transparency. We would hope that the report we finally see as the community will look the same as the one Jaindi Kisero seems to be privy to. Share the report already... *Ali Hussein* *Principal* *Hussein & Associates* Tel: +254 713 601113 Twitter: @AliHKassim Skype: abu-jomo LinkedIn: http://ke.linkedin.com/in/alihkassim <http://ke.linkedin.com/in/alihkassim> 13th Floor , Delta Towers, Oracle Wing, Chiromo Road, Westlands, Nairobi, Kenya. Any information of a personal nature expressed in this email are purely mine and do not necessarily reflect the official positions of the organizations that I work with. On Thu, Feb 23, 2017 at 1:32 PM, Grace Githaiga via kictanet < kictanet@lists.kictanet.or.ke> wrote:
As the draft Dominance report undergoes internal review at CA, Jaindi Kisero continues to provide some snapshots.
"Telecoms operator Safaricom could be forced to hive off its popular mobile money service M-Pesa if sector regulator, the CA, moves to implement recommendations of a market dominance report.
Separating the highly profitable mobile money service from Safaricom’s core telecoms business – commonly referred to as functional separation - is the gist of a raft of recommendations that international consultants - Analysys Mason - have made in a yet-to be published reportseen by the Business Daily."
More details: http://www.nation.co.ke/business/Safaricom-faces-M- Pesa-break-up-in-market-dominance-war-/996-3824618-vdv5gw/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
"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.
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The thing is that report is already 'leaked' or how else would Jaindi be chambuaring it for us. So it will be interesting to see the final report that is 'undergoing internal review'. And I guess we can interpret this 'reviewing' in different ways. But you also raise a good point. What were the TORs? Was Safaricom already declared dominant and therefore these specific recommendations? Did the Consultant draw these recommendations based on opinions from some quarters? Look at this from the article:"_The report has also recommended ‘replicability of retail tariffs’ meaning that whenever Safaricom is deciding a promotion or a loyalty scheme - for instance ‘Bonga points’ or ‘Storo’ - the regulator must check and ensure that the offer is being profitably replicated by a reasonably efficient competitor". _Really? So Companies have no independence in deciding on their promotional products to attract more customers? In addition, I thought we have a Competition Authority that should deal with competition matters? Yes? Wacha tungonjee hiyo ripoti after it has been 'reviewed'. Best regards Githaiga, Grace On Thursday, 23-02-2017 at 16:21 Ali Hussein wrote: GG and all I'm really curious:- 1. This document seemedvery loaded. And it seems that it has gone beyond its mandate? Were theConsultants asked to provide recommendations to remedy a 'Dominant' position?it would be good if we could have seen the TOR for this assignment. To quote the article:- 2. Safaricom chief executive Bob Collymore said he had not seenthereport, but bristled at the prospect of an external party ordering thecompany to break up its business. “I am pretty hostile to the idea. Wecan’t have other people dictating whether we break up our company or not,” hesaid. Absolutely. I can't blame him for that. It also seems like the Regulator is Regulating Safaricom for thecompetition not for the consumer - if of course the leaked report is to be believed. Then the leaked document talks about the possibility of splitting M-Pesa from Safaricom but stopping shot of making the split permanent - as in split them but let them remain under one legal entity. In commercial terms this is known as creating 'Chinese Walls'. We all know how that works. IT NEVER WORKS!! Besides which. Breaking up companies is simply a Regulatory tool fit for the AT&Ts, Standard Oils (which by the way is back as one huge conglomerate after being split into more than 50 companies) of this world. 3. This is the information age. The Networked Age, The Millenial Age. The core potential customers don't care about Nationality, colour, creed or whatever else. All they care about is What have you done for me lately? or better still - What can you do for me now? Its clear Safaricom has earned its strips. Remedying market power abuse cannot be to split up the company. The idea that you punish a successful company by cutting it into pieces is preposterous in 2017. 4. CA, we would like to see the report before 'internal' review. We would like to see it before it is edited. This is the age of transparency. We would hope that the report we finally see as the community will look the same as the one Jaindi Kisero seems to be privy to. Share the report already... AliHussein Principal Hussein & Associates Tel: +254 713 601113 Twitter: @AliHKassim Skype: abu-jomo LinkedIn: http://ke.linkedin.com/in/alihkassim 13th Floor , Delta Towers, Oracle Wing, Chiromo Road, Westlands, Nairobi, Kenya. Any information of a personal nature expressed in this email are purely mine and do not necessarily reflect the official positions of the organizations that I work with. On Thu, Feb 23, 2017 at 1:32 PM, Grace Githaiga via kictanet wrote: As the draft Dominance report undergoes internal review at CA, Jaindi Kisero continues to provide some snapshots. "Telecoms operator Safaricom could be forced to hive off its popular mobile money service M-Pesa if sector regulator, the CA, moves to implement recommendations of a market dominance report. Separating the highly profitable mobile money service from Safaricom’s core telecoms business – commonly referred to as functional separation - is the gist of a raft of recommendations that international consultants - Analysys Mason - have made in a yet-to be published reportseen by the Business Daily." More details:http://www.nation.co.ke/business/Safaricom-faces-M-Pesa-break-up-in-market-d... 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/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. 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.
Guys, Competition Authority refused to be involved in matters between Safcom and the regulator. Back in 2015, CAK, wrote to CA and and asked if Safcom had abused their position. From DG of CA, to CS Matiang'i and the then PS Tiampati, no one was able to reply to that question. Read below; http://www.businessdailyafrica.com/Corporate-News/Reprieve-Safaricom-CAK-ref... So if you look at the grand scheme of things splitting Safcom is going to be done so as to create room to expedite growth room for another player who I will NOT name now. But look very closely. I mean very closely .... Get Outlook for iOS<https://aka.ms/o0ukef> ________________________________ From: kictanet <kictanet-bounces+gwarigi=msn.com@lists.kictanet.or.ke> on behalf of Grace Githaiga via kictanet <kictanet@lists.kictanet.or.ke> Sent: Thursday, February 23, 2017 5:01:44 PM To: gwarigi@msn.com Cc: Grace Githaiga Subject: Re: [kictanet] Safaricom faces M-Pesa break up in market dominance war The thing is that report is already 'leaked' or how else would Jaindi be chambuaring it for us. So it will be interesting to see the final report that is 'undergoing internal review'. And I guess we can interpret this 'reviewing' in different ways. But you also raise a good point. What were the TORs? Was Safaricom already declared dominant and therefore these specific recommendations? Did the Consultant draw these recommendations based on opinions from some quarters? Look at this from the article:"The report has also recommended ‘replicability of retail tariffs’ meaning that whenever Safaricom is deciding a promotion or a loyalty scheme - for instance ‘Bonga points’ or ‘Storo’ - the regulator must check and ensure that the offer is being profitably replicated by a reasonably efficient competitor". Really? So Companies have no independence in deciding on their promotional products to attract more customers? In addition, I thought we have a Competition Authority that should deal with competition matters? Yes? Wacha tungonjee hiyo ripoti after it has been 'reviewed'. Best regards Githaiga, Grace On Thursday, 23-02-2017 at 16:21 Ali Hussein wrote: GG and all I'm really curious:- 1. This document seemedvery loaded. And it seems that it has gone beyond its mandate? Were theConsultants asked to provide recommendations to remedy a 'Dominant' position?it would be good if we could have seen the TOR for this assignment. To quote the article:- 2. Safaricom chief executive Bob Collymore said he had not seenthereport, but bristled at the prospect of an external party ordering thecompany to break up its business. “I am pretty hostile to the idea. Wecan’t have other people dictating whether we break up our company or not,” hesaid. Absolutely. I can't blame him for that. It also seems like the Regulator is Regulating Safaricom for thecompetition not for the consumer - if of course the leaked report is to be believed. Then the leaked document talks about the possibility of splitting M-Pesa from Safaricom but stopping shot of making the split permanent - as in split them but let them remain under one legal entity. In commercial terms this is known as creating 'Chinese Walls'. We all know how that works. IT NEVER WORKS!! Besides which. Breaking up companies is simply a Regulatory tool fit for the AT&Ts, Standard Oils (which by the way is back as one huge conglomerate after being split into more than 50 companies) of this world. 3. This is the information age. The Networked Age, The Millenial Age. The core potential customers don't care about Nationality, colour, creed or whatever else. All they care about is What have you done for me lately? or better still - What can you do for me now? Its clear Safaricom has earned its strips. Remedying market power abuse cannot be to split up the company. The idea that you punish a successful company by cutting it into pieces is preposterous in 2017. 4. CA, we would like to see the report before 'internal' review. We would like to see it before it is edited. This is the age of transparency. We would hope that the report we finally see as the community will look the same as the one Jaindi Kisero seems to be privy to. Share the report already... AliHussein Principal Hussein & Associates Tel: +254 713 601113 Twitter: @AliHKassim Skype: abu-jomo LinkedIn: http://ke.linkedin.com/in/alihkassim 13th Floor , Delta Towers, Oracle Wing, Chiromo Road, Westlands, Nairobi, Kenya. Any information of a personal nature expressed in this email are purely mine and do not necessarily reflect the official positions of the organizations that I work with. On Thu, Feb 23, 2017 at 1:32 PM, Grace Githaiga via kictanet <kictanet@lists.kictanet.or.ke> wrote: As the draft Dominance report undergoes internal review at CA, Jaindi Kisero continues to provide some snapshots. "Telecoms operator Safaricom could be forced to hive off its popular mobile money service M-Pesa if sector regulator, the CA, moves to implement recommendations of a market dominance report. Separating the highly profitable mobile money service from Safaricom’s core telecoms business – commonly referred to as functional separation - is the gist of a raft of recommendations that international consultants - Analysys Mason - have made in a yet-to be published reportseen by the Business Daily." More details:http://www.nation.co.ke/business/Safaricom-faces-M-Pesa-break-up-in-market-d... 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/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. 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.
I would be interested to understand from CA, the role of the Competition Authority in this discussion vis its mandate under the Competition Act,2010, and why the Communications Authority continues to have a role on matters competition. IMO, I think it would be prudent to have the Competition Authority take the lead on this question given its mandate under the law. *Victor Kapiyo* Advocate of the High Court of Kenya & Commissioner for Oaths *Suite No. 8, Centro House, Westlands, Nairobi* *Office Tel: 020 440 4410; Cell: 0721 847 178 * ==================================================== *“Your attitude, not your aptitude, will determine your altitude” Zig Ziglar* On 23 February 2017 at 23:55, Gabriel via kictanet < kictanet@lists.kictanet.or.ke> wrote:
Guys, Competition Authority refused to be involved in matters between Safcom and the regulator. Back in 2015, CAK, wrote to CA and and asked if Safcom had abused their position. From DG of CA, to CS Matiang'i and the then PS Tiampati, no one was able to reply to that question. Read below; http://www.businessdailyafrica.com/Corporate-News/Reprieve- Safaricom-CAK-refutes-dominant-player-tag/539550-2650002-un4mtj/index.html
So if you look at the grand scheme of things splitting Safcom is going to be done so as to create room to expedite growth room for another player who I will NOT name now. But look very closely. I mean very closely ....
Get Outlook for iOS <https://aka.ms/o0ukef>
------------------------------ *From:* kictanet <kictanet-bounces+gwarigi=msn.com@lists.kictanet.or.ke> on behalf of Grace Githaiga via kictanet <kictanet@lists.kictanet.or.ke> *Sent:* Thursday, February 23, 2017 5:01:44 PM *To:* gwarigi@msn.com *Cc:* Grace Githaiga *Subject:* Re: [kictanet] Safaricom faces M-Pesa break up in market dominance war
The thing is that report is already 'leaked' or how else would Jaindi be chambuaring it for us. So it will be interesting to see the final report that is 'undergoing internal review'. And I guess we can interpret this 'reviewing' in different ways. But you also raise a good point. What were the TORs? Was Safaricom already declared dominant and therefore these specific recommendations? Did the Consultant draw these recommendations based on opinions from some quarters?
Look at this from the article:"*The report has also recommended ‘replicability of retail tariffs’ meaning that whenever Safaricom is deciding a promotion or a loyalty scheme - for instance ‘Bonga points’ or ‘Storo’ - the regulator must check and ensure that the offer is being profitably replicated by a reasonably efficient competitor". * Really? So Companies have no independence in deciding on their promotional products to attract more customers?
In addition, I thought we have a Competition Authority that should deal with competition matters? Yes?
Wacha tungonjee hiyo ripoti after it has been 'reviewed'.
Best regards
Githaiga, Grace
On Thursday, 23-02-2017 at 16:21 Ali Hussein wrote:
GG and all
I'm really curious:-
1. This document seemedvery loaded. And it seems that it has gone beyond its mandate? Were theConsultants asked to provide recommendations to remedy a 'Dominant' position?it would be good if we could have seen the TOR for this assignment.
To quote the article:-
2. Safaricom chief executive Bob Collymore said he had not seenthereport, but bristled at the prospect of an external party ordering thecompany to break up its business.
“I am pretty hostile to the idea. Wecan’t have other people dictating whether we break up our company or not,” hesaid.
Absolutely. I can't blame him for that.
It also seems like the Regulator is Regulating Safaricom for thecompetition not for the consumer
- if of course the leaked report is to be believed.
Then the leaked document talks about the possibility of splitting M-Pesa from Safaricom but stopping shot of making the split permanent - as in split them but let them remain under one legal entity. In commercial terms this is known as creating 'Chinese Walls'. We all know how that works.
IT NEVER WORKS!!
Besides which. Breaking up companies is simply a Regulatory tool fit for the AT&Ts, Standard Oils (which by the way is back as one huge conglomerate after being split into more than 50 companies) of this world.
3. This is the information age. The Networked Age, The Millenial Age. The core potential customers don't care about Nationality, colour, creed or whatever else. All they care about is What have you done for me lately? or better still - What can you do for me now?
Its clear Safaricom has earned its strips. Remedying market power abuse cannot be to split up the company. The idea that you punish a successful company by cutting it into pieces is preposterous in 2017.
4. CA, we would like to see the report before 'internal' review. We would like to see it before it is edited. This is the age of transparency. We would hope that the report we finally see as the community will look the same as the one Jaindi Kisero seems to be privy to.
Share the report already...
*AliHussein*
*Principal*
*Hussein & Associates*
Tel: +254 713 601113
Twitter: @AliHKassim
Skype: abu-jomo
LinkedIn: http://ke.linkedin.com/in/alihkassim
13th Floor , Delta Towers, Oracle Wing,
Chiromo Road, Westlands,
Nairobi, Kenya.
Any information of a personal nature expressed in this email are purely mine and do not necessarily reflect the official positions of the organizations that I work with.
On Thu, Feb 23, 2017 at 1:32 PM, Grace Githaiga via kictanet < kictanet@lists.kictanet.or.ke> wrote:
As the draft Dominance report undergoes internal review at CA, Jaindi Kisero continues to provide some snapshots.
"Telecoms operator Safaricom could be forced to hive off its popular mobile money service M-Pesa if sector regulator, the CA, moves to implement recommendations of a market dominance report.
Separating the highly profitable mobile money service from Safaricom’s core telecoms business – commonly referred to as functional separation - is the gist of a raft of recommendations that international consultants - Analysys Mason - have made in a yet-to be published reportseen by the Business Daily."
More details:http://www.nation.co.ke/business/Safaricom-faces-M-P esa-break-up-in-market-dominance-war-/996-3824618-vdv5gw/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
"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.
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.
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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.
Hi Victor and listers, Based on the questions you raise, allow us to draw the distinction and points of convergence on the roles of CA and CAK with respect to powers over competition matters and on dominance declaration. Powers over competition matters It is important to note that both institutions have powers over competition matters in the ICT sector. The Communication Authority has both ex-ante and ex-post jurisdiction while the Competition Authority has only ex-post jurisdiction. Ex ante regulation is the setting of rules and obligations to be adhered to by service providers (before the event) deemed to be in a position of significant market power which, either in itself or through possible abuse of such a position, may impair competition to the detriment of consumer welfare. Examples of ex ante rules that are focussed on wholesale services such as interconnection (applicable to all networks), access to USSD channel ( applicable to mobile money platforms) etc, where each network is deemed to have monopoly over its own network when terminating calls from, or providing access to other networks.The philosophy behind Ex post regulation punishes abuse of dominance. The telecommunications and the ICT sector in general applies both forms of regulation. The Communication Authority's powers in relation to competition are derived from the Kenya Information and Communications Act 1998(as amended in 2013 and 2015) (KICA). These powers include: i. the promotion of competition (section 23(2)(b)) ii. ex-ante and ex-post jurisdiction (sections 84Q, 84R, 84S and 84T) iii. determining which licensees are “dominant in a relevant market” (section 84W). On the other hand, the Competition Authority derives its mandate from the Competition Act, 2010 (with the 2012 and 2014 amendments) (Competition Act). These powers include: i. ex-post (with some powers in relation to market inquiries) ii. to investigate complaints and markets to establish if there has been an abuse of dominance or anti-competitive behaviour (including restrictive trade practices) (Parts III, IV and V of the Competition Act) Definition of Dominance Notably, the definition of a dominant operator in both Kenya Information and Communication Act and Competition Act is similar. The Competition Act defines a dominant position as follows: S4(3) of the Act: A person has a dominant position in a market if the person – (a) produces, supplies, distributes or otherwise controls not less than one-half of the total goods of any description that are produced, supplied or distributed in Kenya or any substantial part thereof; or (b) provides or otherwise controls not less than one-half of the services that are rendered in Kenya or any substantial part thereof.” In the 2015 amendment of KICA the definition of “dominant telecommunications provider” cross-references s4 and 23 of the Competition Act i.e. A person has a dominant position in a market if the person – (a) produces, supplies, distributes or otherwise controls not less than one-half of the total goods of any description that are produced, supplied or distributed in Kenya or any substantial part thereof; or (b) provides or otherwise controls not less than one-half of the services that are rendered in Kenya or any substantial part thereof Power over Dominance On matters of dominance, KICA confers the CA with primary decision-making powers in this regard. Particularly, s84W “The Commission may, in consultation with the Competition Authority of Kenya and after due process, declare a person or institution by notice in the Gazette, to be a “dominant telecommunications service provider” for the purposes of this Act”. Moreover, the Fair Competition and Equality of Treatment Regulations, 2010 expounds more on how the Authority will go about the process of declaration of dominance. For the avoidance of doubt, the Kenya constitution 2010, envisaged the creation of an independent regulator,free from both commercial and political interests; and which the Supreme Court re-affirmed that that envisaged independent regulator is the CA. I hope that sheds some light that can inform discussions. Regards, Rachel From: kictanet <kictanet-bounces+alwala=ca.go.ke@lists.kictanet.or.ke<mailto:kictanet-bounces+alwala=ca.go.ke@lists.kictanet.or.ke>> on behalf of KICTAnet Discussions <kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke>> Reply-To: KICTAnet Discussions <kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke>> Date: Friday, February 24, 2017 at 1:41 PM To: Rachel <alwala@ca.go.ke<mailto:alwala@ca.go.ke>> Cc: 'Victor Kapiyo' <vkapiyo@gmail.com<mailto:vkapiyo@gmail.com>> Subject: Re: [kictanet] Safaricom faces M-Pesa break up in market dominance war I would be interested to understand from CA, the role of the Competition Authority in this discussion vis its mandate under the Competition Act,2010, and why the Communications Authority continues to have a role on matters competition. IMO, I think it would be prudent to have the Competition Authority take the lead on this question given its mandate under the law. Victor Kapiyo Advocate of the High Court of Kenya & Commissioner for Oaths Suite No. 8, Centro House, Westlands, Nairobi Office Tel: 020 440 4410; Cell: 0721 847 178 ==================================================== “Your attitude, not your aptitude, will determine your altitude” Zig Ziglar On 23 February 2017 at 23:55, Gabriel via kictanet <kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke>> wrote: Guys, Competition Authority refused to be involved in matters between Safcom and the regulator. Back in 2015, CAK, wrote to CA and and asked if Safcom had abused their position. From DG of CA, to CS Matiang'i and the then PS Tiampati, no one was able to reply to that question. Read below; http://www.businessdailyafrica.com/Corporate-News/Reprieve-Safaricom-CAK-ref... So if you look at the grand scheme of things splitting Safcom is going to be done so as to create room to expedite growth room for another player who I will NOT name now. But look very closely. I mean very closely .... Get Outlook for iOS<https://aka.ms/o0ukef> ________________________________ From: kictanet <kictanet-bounces+gwarigi=msn.com@lists.kictanet.or.ke<mailto:msn.com@lists.kictanet.or.ke>> on behalf of Grace Githaiga via kictanet <kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke>> Sent: Thursday, February 23, 2017 5:01:44 PM To: gwarigi@msn.com<mailto:gwarigi@msn.com> Cc: Grace Githaiga Subject: Re: [kictanet] Safaricom faces M-Pesa break up in market dominance war The thing is that report is already 'leaked' or how else would Jaindi be chambuaring it for us. So it will be interesting to see the final report that is 'undergoing internal review'. And I guess we can interpret this 'reviewing' in different ways. But you also raise a good point. What were the TORs? Was Safaricom already declared dominant and therefore these specific recommendations? Did the Consultant draw these recommendations based on opinions from some quarters? Look at this from the article:"The report has also recommended ‘replicability of retail tariffs’ meaning that whenever Safaricom is deciding a promotion or a loyalty scheme - for instance ‘Bonga points’ or ‘Storo’ - the regulator must check and ensure that the offer is being profitably replicated by a reasonably efficient competitor". Really? So Companies have no independence in deciding on their promotional products to attract more customers? In addition, I thought we have a Competition Authority that should deal with competition matters? Yes? Wacha tungonjee hiyo ripoti after it has been 'reviewed'. Best regards Githaiga, Grace On Thursday, 23-02-2017 at 16:21 Ali Hussein wrote: GG and all I'm really curious:- 1. This document seemedvery loaded. And it seems that it has gone beyond its mandate? Were theConsultants asked to provide recommendations to remedy a 'Dominant' position?it would be good if we could have seen the TOR for this assignment. To quote the article:- 2. Safaricom chief executive Bob Collymore said he had not seenthereport, but bristled at the prospect of an external party ordering thecompany to break up its business. “I am pretty hostile to the idea. Wecan’t have other people dictating whether we break up our company or not,” hesaid. Absolutely. I can't blame him for that. It also seems like the Regulator is Regulating Safaricom for thecompetition not for the consumer - if of course the leaked report is to be believed. Then the leaked document talks about the possibility of splitting M-Pesa from Safaricom but stopping shot of making the split permanent - as in split them but let them remain under one legal entity. In commercial terms this is known as creating 'Chinese Walls'. We all know how that works. IT NEVER WORKS!! Besides which. Breaking up companies is simply a Regulatory tool fit for the AT&Ts, Standard Oils (which by the way is back as one huge conglomerate after being split into more than 50 companies) of this world. 3. This is the information age. The Networked Age, The Millenial Age. The core potential customers don't care about Nationality, colour, creed or whatever else. All they care about is What have you done for me lately? or better still - What can you do for me now? Its clear Safaricom has earned its strips. Remedying market power abuse cannot be to split up the company. The idea that you punish a successful company by cutting it into pieces is preposterous in 2017. 4. CA, we would like to see the report before 'internal' review. We would like to see it before it is edited. This is the age of transparency. We would hope that the report we finally see as the community will look the same as the one Jaindi Kisero seems to be privy to. Share the report already... AliHussein Principal Hussein & Associates Tel: +254 713 601113 Twitter: @AliHKassim Skype: abu-jomo LinkedIn: http://ke.linkedin.com/in/alihkassim 13th Floor , Delta Towers, Oracle Wing, Chiromo Road, Westlands, Nairobi, Kenya. Any information of a personal nature expressed in this email are purely mine and do not necessarily reflect the official positions of the organizations that I work with. On Thu, Feb 23, 2017 at 1:32 PM, Grace Githaiga via kictanet <kictanet@lists.kictanet.or.ke> wrote: As the draft Dominance report undergoes internal review at CA, Jaindi Kisero continues to provide some snapshots. "Telecoms operator Safaricom could be forced to hive off its popular mobile money service M-Pesa if sector regulator, the CA, moves to implement recommendations of a market dominance report. Separating the highly profitable mobile money service from Safaricom’s core telecoms business – commonly referred to as functional separation - is the gist of a raft of recommendations that international consultants - Analysys Mason - have made in a yet-to be published reportseen by the Business Daily." More details:http://www.nation.co.ke/business/Safaricom-faces-M-Pesa-break-up-in-market-d... 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/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. 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<http://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<mailto: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/vkapiyo%40gmail.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.
Rachel I'm impressed by your elaborate answer. Very informative and based on legal grounds. I'm curious however when the community will have a chance to 'chambua' the Dominance Report? 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 3 Mar 2017, at 4:20 PM, Alwala, Rachel via kictanet <kictanet@lists.kictanet.or.ke> wrote:
Hi Victor and listers,
Based on the questions you raise, allow us to draw the distinction and points of convergence on the roles of CA and CAK with respect to powers over competition matters and on dominance declaration.
Powers over competition matters
It is important to note that both institutions have powers over competition matters in the ICT sector. The Communication Authority has both ex-ante and ex-post jurisdiction while the Competition Authority has only ex-post jurisdiction. Ex ante regulation is the setting of rules and obligations to be adhered to by service providers (before the event) deemed to be in a position of significant market power which, either in itself or through possible abuse of such a position, may impair competition to the detriment of consumer welfare. Examples of ex ante rules that are focussed on wholesale services such as interconnection (applicable to all networks), access to USSD channel ( applicable to mobile money platforms) etc, where each network is deemed to have monopoly over its own network when terminating calls from, or providing access to other networks.The philosophy behind Ex post regulation punishes abuse of dominance. The telecommunications and the ICT sector in general applies both forms of regulation.
The Communication Authority's powers in relation to competition are derived from the Kenya Information and Communications Act 1998(as amended in 2013 and 2015) (KICA). These powers include:
i. the promotion of competition (section 23(2)(b))
ii. ex-ante and ex-post jurisdiction (sections 84Q, 84R, 84S and 84T)
iii. determining which licensees are “dominant in a relevant market” (section 84W).
On the other hand, the Competition Authority derives its mandate from the Competition Act, 2010 (with the 2012 and 2014 amendments) (Competition Act). These powers include:
i. ex-post (with some powers in relation to market inquiries)
ii. to investigate complaints and markets to establish if there has been an abuse of dominance or anti-competitive behaviour (including restrictive trade practices) (Parts III, IV and V of the Competition Act)
Definition of Dominance
Notably, the definition of a dominant operator in both Kenya Information and Communication Act and Competition Act is similar.
The Competition Act defines a dominant position as follows:
S4(3) of the Act:
A person has a dominant position in a market if the person –
(a) produces, supplies, distributes or otherwise controls not less than one-half of the total goods of any description that are produced, supplied or distributed in Kenya or any substantial part thereof; or
(b) provides or otherwise controls not less than one-half of the services that are rendered in Kenya or any substantial part thereof.”
In the 2015 amendment of KICA the definition of “dominant telecommunications provider” cross-references s4 and 23 of the Competition Act i.e. A person has a dominant position in a market if the person –
(a) produces, supplies, distributes or otherwise controls not less than one-half of the total goods of any description that are produced, supplied or distributed in Kenya or any substantial part thereof; or
(b) provides or otherwise controls not less than one-half of the services that are rendered in Kenya or any substantial part thereof
Power over Dominance
On matters of dominance, KICA confers the CA with primary decision-making powers in this regard. Particularly, s84W “The Commission may, in consultation with the Competition Authority of Kenya and after due process, declare a person or institution by notice in the Gazette, to be a “dominant telecommunications service provider” for the purposes of this Act”.
Moreover, the Fair Competition and Equality of Treatment Regulations, 2010 expounds more on how the Authority will go about the process of declaration of dominance. For the avoidance of doubt, the Kenya constitution 2010, envisaged the creation of an independent regulator,free from both commercial and political interests; and which the Supreme Court re-affirmed that that envisaged independent regulator is the CA.
I hope that sheds some light that can inform discussions.
Regards,
Rachel
From: kictanet <kictanet-bounces+alwala=ca.go.ke@lists.kictanet.or.ke> on behalf of KICTAnet Discussions <kictanet@lists.kictanet.or.ke> Reply-To: KICTAnet Discussions <kictanet@lists.kictanet.or.ke> Date: Friday, February 24, 2017 at 1:41 PM To: Rachel <alwala@ca.go.ke> Cc: 'Victor Kapiyo' <vkapiyo@gmail.com> Subject: Re: [kictanet] Safaricom faces M-Pesa break up in market dominance war
I would be interested to understand from CA, the role of the Competition Authority in this discussion vis its mandate under the Competition Act,2010, and why the Communications Authority continues to have a role on matters competition. IMO, I think it would be prudent to have the Competition Authority take the lead on this question given its mandate under the law.
Victor Kapiyo
Advocate of the High Court of Kenya & Commissioner for Oaths Suite No. 8, Centro House, Westlands, Nairobi Office Tel: 020 440 4410; Cell: 0721 847 178 ==================================================== “Your attitude, not your aptitude, will determine your altitude” Zig Ziglar
On 23 February 2017 at 23:55, Gabriel via kictanet <kictanet@lists.kictanet.or.ke> wrote: Guys, Competition Authority refused to be involved in matters between Safcom and the regulator. Back in 2015, CAK, wrote to CA and and asked if Safcom had abused their position. From DG of CA, to CS Matiang'i and the then PS Tiampati, no one was able to reply to that question. Read below; http://www.businessdailyafrica.com/Corporate-News/Reprieve-Safaricom-CAK-ref...
So if you look at the grand scheme of things splitting Safcom is going to be done so as to create room to expedite growth room for another player who I will NOT name now. But look very closely. I mean very closely ....
Get Outlook for iOS
From: kictanet <kictanet-bounces+gwarigi=msn.com@lists.kictanet.or.ke> on behalf of Grace Githaiga via kictanet <kictanet@lists.kictanet.or.ke> Sent: Thursday, February 23, 2017 5:01:44 PM To: gwarigi@msn.com Cc: Grace Githaiga Subject: Re: [kictanet] Safaricom faces M-Pesa break up in market dominance war
The thing is that report is already 'leaked' or how else would Jaindi be chambuaring it for us. So it will be interesting to see the final report that is 'undergoing internal review'. And I guess we can interpret this 'reviewing' in different ways. But you also raise a good point. What were the TORs? Was Safaricom already declared dominant and therefore these specific recommendations? Did the Consultant draw these recommendations based on opinions from some quarters?
Look at this from the article:"The report has also recommended ‘replicability of retail tariffs’ meaning that whenever Safaricom is deciding a promotion or a loyalty scheme - for instance ‘Bonga points’ or ‘Storo’ - the regulator must check and ensure that the offer is being profitably replicated by a reasonably efficient competitor". Really? So Companies have no independence in deciding on their promotional products to attract more customers?
In addition, I thought we have a Competition Authority that should deal with competition matters? Yes?
Wacha tungonjee hiyo ripoti after it has been 'reviewed'.
Best regards
Githaiga, Grace
On Thursday, 23-02-2017 at 16:21 Ali Hussein wrote: GG and all
I'm really curious:-
1.
This document seemedvery loaded. And it seems that it has gone beyond its mandate? Were theConsultants asked to provide recommendations to remedy a 'Dominant' position?it would be good if we could have seen the TOR for this assignment. To quote the article:-
2.
Safaricom chief executive Bob Collymore said he had not seenthereport, but bristled at the prospect of an external party ordering thecompany to break up its business.
“I am pretty hostile to the idea. Wecan’t have other people dictating whether we break up our company or not,” hesaid.
Absolutely. I can't blame him for that.
It also seems like the Regulator is Regulating Safaricom for thecompetition not for the consumer
- if of course the leaked report is to be believed.
Then the leaked document talks about the possibility of splitting M-Pesa from Safaricom but stopping shot of making the split permanent - as in split them but let them remain under one legal entity. In commercial terms this is known as creating 'Chinese Walls'. We all know how that works.
IT NEVER WORKS!!
Besides which. Breaking up companies is simply a Regulatory tool fit for the AT&Ts, Standard Oils (which by the way is back as one huge conglomerate after being split into more than 50 companies) of this world.
3. This is the information age. The Networked Age, The Millenial Age. The core potential customers don't care about Nationality, colour, creed or whatever else. All they care about is What have you done for me lately? or better still - What can you do for me now?
Its clear Safaricom has earned its strips. Remedying market power abuse cannot be to split up the company. The idea that you punish a successful company by cutting it into pieces is preposterous in 2017.
4. CA, we would like to see the report before 'internal' review. We would like to see it before it is edited. This is the age of transparency. We would hope that the report we finally see as the community will look the same as the one Jaindi Kisero seems to be privy to.
Share the report already...
AliHussein
Principal
Hussein & Associates
Tel: +254 713 601113 Twitter: @AliHKassim
Skype: abu-jomo
LinkedIn: http://ke.linkedin.com/in/alihkassim
13th Floor , Delta Towers, Oracle Wing,
Chiromo Road, Westlands,
Nairobi, Kenya.
Any information of a personal nature expressed in this email are purely mine and do not necessarily reflect the official positions of the organizations that I work with.
On Thu, Feb 23, 2017 at 1:32 PM, Grace Githaiga via kictanet <kictanet@lists.kictanet.or.ke> wrote: As the draft Dominance report undergoes internal review at CA, Jaindi Kisero continues to provide some snapshots.
"Telecoms operator Safaricom could be forced to hive off its popular mobile money service M-Pesa if sector regulator, the CA, moves to implement recommendations of a market dominance report.
Separating the highly profitable mobile money service from Safaricom’s core telecoms business – commonly referred to as functional separation - is the gist of a raft of recommendations that international consultants - Analysys Mason - have made in a yet-to be published reportseen by the Business Daily."
More details:http://www.nation.co.ke/business/Safaricom-faces-M-Pesa-break-up-in-market-d...
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/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.
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/vkapiyo%40gmail.com
The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
_______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke https://lists.kictanet.or.ke/mailman/listinfo/kictanet 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.
Hi Ali, Karibu. CA’s has always and will always operate within its legal mandate. The Competition Study draft report is under review. This process will be completed in mid April considering we have to work hand in hand with the Competition Authority of Kenya (CAK) and Licensees then later publicly release it in May. There is a due process so please be assured you will have a chance to interact with it. Regards, Rachel From: Ali Hussein <ali@hussein.me.ke<mailto:ali@hussein.me.ke>> Date: Friday, March 3, 2017 at 5:05 PM To: KICTAnet Discussions <kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke>> Cc: Rachel <alwala@ca.go.ke<mailto:alwala@ca.go.ke>> Subject: Re: [kictanet] Safaricom faces M-Pesa break up in market dominance war Rachel I'm impressed by your elaborate answer. Very informative and based on legal grounds. I'm curious however when the community will have a chance to 'chambua' the Dominance Report? 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 3 Mar 2017, at 4:20 PM, Alwala, Rachel via kictanet <kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke>> wrote: Hi Victor and listers, Based on the questions you raise, allow us to draw the distinction and points of convergence on the roles of CA and CAK with respect to powers over competition matters and on dominance declaration. Powers over competition matters It is important to note that both institutions have powers over competition matters in the ICT sector. The Communication Authority has both ex-ante and ex-post jurisdiction while the Competition Authority has only ex-post jurisdiction. Ex ante regulation is the setting of rules and obligations to be adhered to by service providers (before the event) deemed to be in a position of significant market power which, either in itself or through possible abuse of such a position, may impair competition to the detriment of consumer welfare. Examples of ex ante rules that are focussed on wholesale services such as interconnection (applicable to all networks), access to USSD channel ( applicable to mobile money platforms) etc, where each network is deemed to have monopoly over its own network when terminating calls from, or providing access to other networks.The philosophy behind Ex post regulation punishes abuse of dominance. The telecommunications and the ICT sector in general applies both forms of regulation. The Communication Authority's powers in relation to competition are derived from the Kenya Information and Communications Act 1998(as amended in 2013 and 2015) (KICA). These powers include: i. the promotion of competition (section 23(2)(b)) ii. ex-ante and ex-post jurisdiction (sections 84Q, 84R, 84S and 84T) iii. determining which licensees are “dominant in a relevant market” (section 84W). On the other hand, the Competition Authority derives its mandate from the Competition Act, 2010 (with the 2012 and 2014 amendments) (Competition Act). These powers include: i. ex-post (with some powers in relation to market inquiries) ii. to investigate complaints and markets to establish if there has been an abuse of dominance or anti-competitive behaviour (including restrictive trade practices) (Parts III, IV and V of the Competition Act) Definition of Dominance Notably, the definition of a dominant operator in both Kenya Information and Communication Act and Competition Act is similar. The Competition Act defines a dominant position as follows: S4(3) of the Act: A person has a dominant position in a market if the person – (a) produces, supplies, distributes or otherwise controls not less than one-half of the total goods of any description that are produced, supplied or distributed in Kenya or any substantial part thereof; or (b) provides or otherwise controls not less than one-half of the services that are rendered in Kenya or any substantial part thereof.” In the 2015 amendment of KICA the definition of “dominant telecommunications provider” cross-references s4 and 23 of the Competition Act i.e. A person has a dominant position in a market if the person – (a) produces, supplies, distributes or otherwise controls not less than one-half of the total goods of any description that are produced, supplied or distributed in Kenya or any substantial part thereof; or (b) provides or otherwise controls not less than one-half of the services that are rendered in Kenya or any substantial part thereof Power over Dominance On matters of dominance, KICA confers the CA with primary decision-making powers in this regard. Particularly, s84W “The Commission may, in consultation with the Competition Authority of Kenya and after due process, declare a person or institution by notice in the Gazette, to be a “dominant telecommunications service provider” for the purposes of this Act”. Moreover, the Fair Competition and Equality of Treatment Regulations, 2010 expounds more on how the Authority will go about the process of declaration of dominance. For the avoidance of doubt, the Kenya constitution 2010, envisaged the creation of an independent regulator,free from both commercial and political interests; and which the Supreme Court re-affirmed that that envisaged independent regulator is the CA. I hope that sheds some light that can inform discussions. Regards, Rachel From: kictanet <kictanet-bounces+alwala=ca.go.ke@lists.kictanet.or.ke<mailto:kictanet-bounces+alwala=ca.go.ke@lists.kictanet.or.ke>> on behalf of KICTAnet Discussions <kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke>> Reply-To: KICTAnet Discussions <kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke>> Date: Friday, February 24, 2017 at 1:41 PM To: Rachel <alwala@ca.go.ke<mailto:alwala@ca.go.ke>> Cc: 'Victor Kapiyo' <vkapiyo@gmail.com<mailto:vkapiyo@gmail.com>> Subject: Re: [kictanet] Safaricom faces M-Pesa break up in market dominance war I would be interested to understand from CA, the role of the Competition Authority in this discussion vis its mandate under the Competition Act,2010, and why the Communications Authority continues to have a role on matters competition. IMO, I think it would be prudent to have the Competition Authority take the lead on this question given its mandate under the law. Victor Kapiyo Advocate of the High Court of Kenya & Commissioner for Oaths Suite No. 8, Centro House, Westlands, Nairobi Office Tel: 020 440 4410; Cell: 0721 847 178 ==================================================== “Your attitude, not your aptitude, will determine your altitude” Zig Ziglar On 23 February 2017 at 23:55, Gabriel via kictanet <kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke>> wrote: Guys, Competition Authority refused to be involved in matters between Safcom and the regulator. Back in 2015, CAK, wrote to CA and and asked if Safcom had abused their position. From DG of CA, to CS Matiang'i and the then PS Tiampati, no one was able to reply to that question. Read below; http://www.businessdailyafrica.com/Corporate-News/Reprieve-Safaricom-CAK-ref... So if you look at the grand scheme of things splitting Safcom is going to be done so as to create room to expedite growth room for another player who I will NOT name now. But look very closely. I mean very closely .... Get Outlook for iOS<https://aka.ms/o0ukef> ________________________________ From: kictanet <kictanet-bounces+gwarigi=msn.com@lists.kictanet.or.ke<mailto:msn.com@lists.kictanet.or.ke>> on behalf of Grace Githaiga via kictanet <kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke>> Sent: Thursday, February 23, 2017 5:01:44 PM To: gwarigi@msn.com<mailto:gwarigi@msn.com> Cc: Grace Githaiga Subject: Re: [kictanet] Safaricom faces M-Pesa break up in market dominance war The thing is that report is already 'leaked' or how else would Jaindi be chambuaring it for us. So it will be interesting to see the final report that is 'undergoing internal review'. And I guess we can interpret this 'reviewing' in different ways. But you also raise a good point. What were the TORs? Was Safaricom already declared dominant and therefore these specific recommendations? Did the Consultant draw these recommendations based on opinions from some quarters? Look at this from the article:"The report has also recommended ‘replicability of retail tariffs’ meaning that whenever Safaricom is deciding a promotion or a loyalty scheme - for instance ‘Bonga points’ or ‘Storo’ - the regulator must check and ensure that the offer is being profitably replicated by a reasonably efficient competitor". Really? So Companies have no independence in deciding on their promotional products to attract more customers? In addition, I thought we have a Competition Authority that should deal with competition matters? Yes? Wacha tungonjee hiyo ripoti after it has been 'reviewed'. Best regards Githaiga, Grace On Thursday, 23-02-2017 at 16:21 Ali Hussein wrote: GG and all I'm really curious:- 1. This document seemedvery loaded. And it seems that it has gone beyond its mandate? Were theConsultants asked to provide recommendations to remedy a 'Dominant' position?it would be good if we could have seen the TOR for this assignment. To quote the article:- 2. Safaricom chief executive Bob Collymore said he had not seenthereport, but bristled at the prospect of an external party ordering thecompany to break up its business. “I am pretty hostile to the idea. Wecan’t have other people dictating whether we break up our company or not,” hesaid. Absolutely. I can't blame him for that. It also seems like the Regulator is Regulating Safaricom for thecompetition not for the consumer - if of course the leaked report is to be believed. Then the leaked document talks about the possibility of splitting M-Pesa from Safaricom but stopping shot of making the split permanent - as in split them but let them remain under one legal entity. In commercial terms this is known as creating 'Chinese Walls'. We all know how that works. IT NEVER WORKS!! Besides which. Breaking up companies is simply a Regulatory tool fit for the AT&Ts, Standard Oils (which by the way is back as one huge conglomerate after being split into more than 50 companies) of this world. 3. This is the information age. The Networked Age, The Millenial Age. The core potential customers don't care about Nationality, colour, creed or whatever else. All they care about is What have you done for me lately? or better still - What can you do for me now? Its clear Safaricom has earned its strips. Remedying market power abuse cannot be to split up the company. The idea that you punish a successful company by cutting it into pieces is preposterous in 2017. 4. CA, we would like to see the report before 'internal' review. We would like to see it before it is edited. This is the age of transparency. We would hope that the report we finally see as the community will look the same as the one Jaindi Kisero seems to be privy to. Share the report already... AliHussein Principal Hussein & Associates Tel: +254 713 601113 Twitter: @AliHKassim Skype: abu-jomo LinkedIn: http://ke.linkedin.com/in/alihkassim 13th Floor , Delta Towers, Oracle Wing, Chiromo Road, Westlands, Nairobi, Kenya. Any information of a personal nature expressed in this email are purely mine and do not necessarily reflect the official positions of the organizations that I work with. On Thu, Feb 23, 2017 at 1:32 PM, Grace Githaiga via kictanet <kictanet@lists.kictanet.or.ke> wrote: As the draft Dominance report undergoes internal review at CA, Jaindi Kisero continues to provide some snapshots. "Telecoms operator Safaricom could be forced to hive off its popular mobile money service M-Pesa if sector regulator, the CA, moves to implement recommendations of a market dominance report. Separating the highly profitable mobile money service from Safaricom’s core telecoms business – commonly referred to as functional separation - is the gist of a raft of recommendations that international consultants - Analysys Mason - have made in a yet-to be published reportseen by the Business Daily." More details:http://www.nation.co.ke/business/Safaricom-faces-M-Pesa-break-up-in-market-d... 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/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. 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<http://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<mailto: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/vkapiyo%40gmail.com The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development. KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications. _______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke<mailto: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.
Thanks Rachel. 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 4 Mar 2017, at 10:27 PM, Alwala, Rachel <Alwala@ca.go.ke> wrote:
Hi Ali,
Karibu. CA’s has always and will always operate within its legal mandate. The Competition Study draft report is under review. This process will be completed in mid April considering we have to work hand in hand with the Competition Authority of Kenya (CAK) and Licensees then later publicly release it in May. There is a due process so please be assured you will have a chance to interact with it.
Regards,
Rachel
From: Ali Hussein <ali@hussein.me.ke> Date: Friday, March 3, 2017 at 5:05 PM To: KICTAnet Discussions <kictanet@lists.kictanet.or.ke> Cc: Rachel <alwala@ca.go.ke> Subject: Re: [kictanet] Safaricom faces M-Pesa break up in market dominance war
Rachel
I'm impressed by your elaborate answer. Very informative and based on legal grounds.
I'm curious however when the community will have a chance to 'chambua' the Dominance Report?
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 3 Mar 2017, at 4:20 PM, Alwala, Rachel via kictanet <kictanet@lists.kictanet.or.ke> wrote:
Hi Victor and listers,
Based on the questions you raise, allow us to draw the distinction and points of convergence on the roles of CA and CAK with respect to powers over competition matters and on dominance declaration.
Powers over competition matters
It is important to note that both institutions have powers over competition matters in the ICT sector. The Communication Authority has both ex-ante and ex-post jurisdiction while the Competition Authority has only ex-post jurisdiction. Ex ante regulation is the setting of rules and obligations to be adhered to by service providers (before the event) deemed to be in a position of significant market power which, either in itself or through possible abuse of such a position, may impair competition to the detriment of consumer welfare. Examples of ex ante rules that are focussed on wholesale services such as interconnection (applicable to all networks), access to USSD channel ( applicable to mobile money platforms) etc, where each network is deemed to have monopoly over its own network when terminating calls from, or providing access to other networks.The philosophy behind Ex post regulation punishes abuse of dominance. The telecommunications and the ICT sector in general applies both forms of regulation.
The Communication Authority's powers in relation to competition are derived from the Kenya Information and Communications Act 1998(as amended in 2013 and 2015) (KICA). These powers include:
i. the promotion of competition (section 23(2)(b))
ii. ex-ante and ex-post jurisdiction (sections 84Q, 84R, 84S and 84T)
iii. determining which licensees are “dominant in a relevant market” (section 84W).
On the other hand, the Competition Authority derives its mandate from the Competition Act, 2010 (with the 2012 and 2014 amendments) (Competition Act). These powers include:
i. ex-post (with some powers in relation to market inquiries)
ii. to investigate complaints and markets to establish if there has been an abuse of dominance or anti-competitive behaviour (including restrictive trade practices) (Parts III, IV and V of the Competition Act)
Definition of Dominance
Notably, the definition of a dominant operator in both Kenya Information and Communication Act and Competition Act is similar.
The Competition Act defines a dominant position as follows:
S4(3) of the Act:
A person has a dominant position in a market if the person –
(a) produces, supplies, distributes or otherwise controls not less than one-half of the total goods of any description that are produced, supplied or distributed in Kenya or any substantial part thereof; or
(b) provides or otherwise controls not less than one-half of the services that are rendered in Kenya or any substantial part thereof.”
In the 2015 amendment of KICA the definition of “dominant telecommunications provider” cross-references s4 and 23 of the Competition Act i.e. A person has a dominant position in a market if the person –
(a) produces, supplies, distributes or otherwise controls not less than one-half of the total goods of any description that are produced, supplied or distributed in Kenya or any substantial part thereof; or
(b) provides or otherwise controls not less than one-half of the services that are rendered in Kenya or any substantial part thereof
Power over Dominance
On matters of dominance, KICA confers the CA with primary decision-making powers in this regard. Particularly, s84W “The Commission may, in consultation with the Competition Authority of Kenya and after due process, declare a person or institution by notice in the Gazette, to be a “dominant telecommunications service provider” for the purposes of this Act”.
Moreover, the Fair Competition and Equality of Treatment Regulations, 2010 expounds more on how the Authority will go about the process of declaration of dominance. For the avoidance of doubt, the Kenya constitution 2010, envisaged the creation of an independent regulator,free from both commercial and political interests; and which the Supreme Court re-affirmed that that envisaged independent regulator is the CA.
I hope that sheds some light that can inform discussions.
Regards,
Rachel
From: kictanet <kictanet-bounces+alwala=ca.go.ke@lists.kictanet.or.ke> on behalf of KICTAnet Discussions <kictanet@lists.kictanet.or.ke> Reply-To: KICTAnet Discussions <kictanet@lists.kictanet.or.ke> Date: Friday, February 24, 2017 at 1:41 PM To: Rachel <alwala@ca.go.ke> Cc: 'Victor Kapiyo' <vkapiyo@gmail.com> Subject: Re: [kictanet] Safaricom faces M-Pesa break up in market dominance war
I would be interested to understand from CA, the role of the Competition Authority in this discussion vis its mandate under the Competition Act,2010, and why the Communications Authority continues to have a role on matters competition. IMO, I think it would be prudent to have the Competition Authority take the lead on this question given its mandate under the law.
Victor Kapiyo
Advocate of the High Court of Kenya & Commissioner for Oaths Suite No. 8, Centro House, Westlands, Nairobi Office Tel: 020 440 4410; Cell: 0721 847 178 ==================================================== “Your attitude, not your aptitude, will determine your altitude” Zig Ziglar
On 23 February 2017 at 23:55, Gabriel via kictanet <kictanet@lists.kictanet.or.ke> wrote: Guys, Competition Authority refused to be involved in matters between Safcom and the regulator. Back in 2015, CAK, wrote to CA and and asked if Safcom had abused their position. From DG of CA, to CS Matiang'i and the then PS Tiampati, no one was able to reply to that question. Read below; http://www.businessdailyafrica.com/Corporate-News/Reprieve-Safaricom-CAK-ref...
So if you look at the grand scheme of things splitting Safcom is going to be done so as to create room to expedite growth room for another player who I will NOT name now. But look very closely. I mean very closely ....
Get Outlook for iOS
From: kictanet <kictanet-bounces+gwarigi=msn.com@lists.kictanet.or.ke> on behalf of Grace Githaiga via kictanet <kictanet@lists.kictanet.or.ke> Sent: Thursday, February 23, 2017 5:01:44 PM To: gwarigi@msn.com Cc: Grace Githaiga Subject: Re: [kictanet] Safaricom faces M-Pesa break up in market dominance war
The thing is that report is already 'leaked' or how else would Jaindi be chambuaring it for us. So it will be interesting to see the final report that is 'undergoing internal review'. And I guess we can interpret this 'reviewing' in different ways. But you also raise a good point. What were the TORs? Was Safaricom already declared dominant and therefore these specific recommendations? Did the Consultant draw these recommendations based on opinions from some quarters?
Look at this from the article:"The report has also recommended ‘replicability of retail tariffs’ meaning that whenever Safaricom is deciding a promotion or a loyalty scheme - for instance ‘Bonga points’ or ‘Storo’ - the regulator must check and ensure that the offer is being profitably replicated by a reasonably efficient competitor". Really? So Companies have no independence in deciding on their promotional products to attract more customers?
In addition, I thought we have a Competition Authority that should deal with competition matters? Yes?
Wacha tungonjee hiyo ripoti after it has been 'reviewed'.
Best regards
Githaiga, Grace
On Thursday, 23-02-2017 at 16:21 Ali Hussein wrote: GG and all
I'm really curious:-
1.
This document seemedvery loaded. And it seems that it has gone beyond its mandate? Were theConsultants asked to provide recommendations to remedy a 'Dominant' position?it would be good if we could have seen the TOR for this assignment. To quote the article:-
2.
Safaricom chief executive Bob Collymore said he had not seenthereport, but bristled at the prospect of an external party ordering thecompany to break up its business.
“I am pretty hostile to the idea. Wecan’t have other people dictating whether we break up our company or not,” hesaid.
Absolutely. I can't blame him for that.
It also seems like the Regulator is Regulating Safaricom for thecompetition not for the consumer
- if of course the leaked report is to be believed.
Then the leaked document talks about the possibility of splitting M-Pesa from Safaricom but stopping shot of making the split permanent - as in split them but let them remain under one legal entity. In commercial terms this is known as creating 'Chinese Walls'. We all know how that works.
IT NEVER WORKS!!
Besides which. Breaking up companies is simply a Regulatory tool fit for the AT&Ts, Standard Oils (which by the way is back as one huge conglomerate after being split into more than 50 companies) of this world.
3. This is the information age. The Networked Age, The Millenial Age. The core potential customers don't care about Nationality, colour, creed or whatever else. All they care about is What have you done for me lately? or better still - What can you do for me now?
Its clear Safaricom has earned its strips. Remedying market power abuse cannot be to split up the company. The idea that you punish a successful company by cutting it into pieces is preposterous in 2017.
4. CA, we would like to see the report before 'internal' review. We would like to see it before it is edited. This is the age of transparency. We would hope that the report we finally see as the community will look the same as the one Jaindi Kisero seems to be privy to.
Share the report already...
AliHussein
Principal
Hussein & Associates
Tel: +254 713 601113 Twitter: @AliHKassim
Skype: abu-jomo
LinkedIn: http://ke.linkedin.com/in/alihkassim
13th Floor , Delta Towers, Oracle Wing,
Chiromo Road, Westlands,
Nairobi, Kenya.
Any information of a personal nature expressed in this email are purely mine and do not necessarily reflect the official positions of the organizations that I work with.
On Thu, Feb 23, 2017 at 1:32 PM, Grace Githaiga via kictanet <kictanet@lists.kictanet.or.ke> wrote: As the draft Dominance report undergoes internal review at CA, Jaindi Kisero continues to provide some snapshots.
"Telecoms operator Safaricom could be forced to hive off its popular mobile money service M-Pesa if sector regulator, the CA, moves to implement recommendations of a market dominance report.
Separating the highly profitable mobile money service from Safaricom’s core telecoms business – commonly referred to as functional separation - is the gist of a raft of recommendations that international consultants - Analysys Mason - have made in a yet-to be published reportseen by the Business Daily."
More details:http://www.nation.co.ke/business/Safaricom-faces-M-Pesa-break-up-in-market-d...
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/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.
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/vkapiyo%40gmail.com
The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
_______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke https://lists.kictanet.or.ke/mailman/listinfo/kictanet 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.
As we struggle to understand what public participation means..... The schedule of events is interesting Rachel, and it perhaps explains why there is already public discussion of a yet to be concluded report. It may be the public's way of reminding the regulator that we are also affected by competition decisions and discussions on this are not only a matter between regulators and licensees. When different stakeholders will give their input at different times.....does that mean that different stakeholder views are weighted differently? Would for instance, input by the public at public release stage still count even if the regulators and licensees have previously agreed on some aspects? 2017-03-06 3:54 GMT+03:00 Ali Hussein via kictanet < kictanet@lists.kictanet.or.ke>:
Thanks Rachel.
*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 4 Mar 2017, at 10:27 PM, Alwala, Rachel <Alwala@ca.go.ke> wrote:
Hi Ali,
Karibu. CA’s has always and will always operate within its legal mandate. The Competition Study draft report is under review. This process will be completed in mid April considering we have to work hand in hand with the Competition Authority of Kenya (CAK) and Licensees then later publicly release it in May. There is a due process so please be assured you will have a chance to interact with it.
Regards,
Rachel
From: Ali Hussein <ali@hussein.me.ke> Date: Friday, March 3, 2017 at 5:05 PM To: KICTAnet Discussions <kictanet@lists.kictanet.or.ke> Cc: Rachel <alwala@ca.go.ke> Subject: Re: [kictanet] Safaricom faces M-Pesa break up in market dominance war
Rachel
I'm impressed by your elaborate answer. Very informative and based on legal grounds.
I'm curious however when the community will have a chance to 'chambua' the Dominance Report?
*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 3 Mar 2017, at 4:20 PM, Alwala, Rachel via kictanet < kictanet@lists.kictanet.or.ke> wrote:
Hi Victor and listers,
Based on the questions you raise, allow us to draw the distinction and points of convergence on the roles of CA and CAK with respect to powers over competition matters and on dominance declaration.
*Powers over competition matters*
It is important to note that both institutions have powers over competition matters in the ICT sector. The Communication Authority has both ex-ante and ex-post jurisdiction while the Competition Authority has only ex-post jurisdiction. Ex ante regulation is the setting of rules and obligations to be adhered to by service providers (before the event) deemed to be in a position of significant market power which, either in itself or through possible abuse of such a position, may impair competition to the detriment of consumer welfare. Examples of ex ante rules that are focussed on wholesale services such as interconnection (applicable to all networks), access to USSD channel ( applicable to mobile money platforms) etc, where each network is deemed to have monopoly over its own network when terminating calls from, or providing access to other networks.The philosophy behind Ex post regulation punishes abuse of dominance. The telecommunications and the ICT sector in general applies both forms of regulation.
The Communication Authority's powers in relation to competition are derived from the Kenya Information and Communications Act 1998(as amended in 2013 and 2015) (KICA). These powers include:
i. the promotion of competition (section 23(2)(b))
ii. ex-ante and ex-post jurisdiction (sections 84Q, 84R, 84S and 84T)
iii. determining which licensees are “dominant in a relevant market” (section 84W).
On the other hand, the Competition Authority derives its mandate from the Competition Act, 2010 (with the 2012 and 2014 amendments) (Competition Act). These powers include:
i. ex-post (with some powers in relation to market inquiries)
ii. to investigate complaints and markets to establish if there has been an abuse of dominance or anti-competitive behaviour (including restrictive trade practices) (Parts III, IV and V of the Competition Act)
*Definition of Dominance*
Notably, the definition of a dominant operator in both Kenya Information and Communication Act and Competition Act is similar.
The Competition Act defines a dominant position as follows:
*S4(3) of the Act*:
A person has a dominant position in a market if the person –
(a) produces, supplies, distributes or otherwise controls not less than one-half of the total goods of any description that are produced, supplied or distributed in Kenya or any substantial part thereof; or
(b) provides or otherwise controls not less than one-half of the services that are rendered in Kenya or any substantial part thereof.”
In the 2015 amendment of KICA the definition of “dominant telecommunications provider” cross-references s4 and 23 of the Competition Act i.e. A person has a dominant position in a market if the person –
(a) produces, supplies, distributes or otherwise controls not less than one-half of the total goods of any description that are produced, supplied or distributed in Kenya or any substantial part thereof; or
(b) provides or otherwise controls not less than one-half of the services that are rendered in Kenya or any substantial part thereof
*Power over Dominance*
On matters of dominance, KICA confers the CA with primary decision-making powers in this regard. Particularly, s84W “*The Commission may, in consultation with the Competition Authority of Kenya* and after due process, declare a person or institution by notice in the Gazette, to be a “dominant telecommunications service provider” for the purposes of this Act”.
Moreover, the Fair Competition and Equality of Treatment Regulations, 2010 expounds more on how the Authority will go about the process of declaration of dominance. For the avoidance of doubt, the Kenya constitution 2010, envisaged the creation of an independent regulator,free from both commercial and political interests; and which the Supreme Court re-affirmed that that envisaged independent regulator is the CA.
I hope that sheds some light that can inform discussions.
Regards,
Rachel
From: kictanet <kictanet-bounces+alwala=ca.go.ke@lists.kictanet.or.ke> on behalf of KICTAnet Discussions <kictanet@lists.kictanet.or.ke> Reply-To: KICTAnet Discussions <kictanet@lists.kictanet.or.ke> Date: Friday, February 24, 2017 at 1:41 PM To: Rachel <alwala@ca.go.ke> Cc: 'Victor Kapiyo' <vkapiyo@gmail.com> Subject: Re: [kictanet] Safaricom faces M-Pesa break up in market dominance war
I would be interested to understand from CA, the role of the Competition Authority in this discussion vis its mandate under the Competition Act,2010, and why the Communications Authority continues to have a role on matters competition. IMO, I think it would be prudent to have the Competition Authority take the lead on this question given its mandate under the law.
*Victor Kapiyo*
Advocate of the High Court of Kenya & Commissioner for Oaths *Suite No. 8, Centro House, Westlands, Nairobi* *Office Tel: 020 440 4410; Cell: 0721 847 178 * ==================================================== *“Your attitude, not your aptitude, will determine your altitude” Zig Ziglar*
On 23 February 2017 at 23:55, Gabriel via kictanet < kictanet@lists.kictanet.or.ke> wrote:
Guys, Competition Authority refused to be involved in matters between Safcom and the regulator. Back in 2015, CAK, wrote to CA and and asked if Safcom had abused their position. From DG of CA, to CS Matiang'i and the then PS Tiampati, no one was able to reply to that question. Read below; http://www.businessdailyafrica.com/Corporate-News/Reprieve-S afaricom-CAK-refutes-dominant-player-tag/539550-2650002-un4mtj/index.html
So if you look at the grand scheme of things splitting Safcom is going to be done so as to create room to expedite growth room for another player who I will NOT name now. But look very closely. I mean very closely ....
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------------------------------ *From:* kictanet <kictanet-bounces+gwarigi=msn.com@lists.kictanet.or.ke> on behalf of Grace Githaiga via kictanet <kictanet@lists.kictanet.or.ke> *Sent:* Thursday, February 23, 2017 5:01:44 PM *To:* gwarigi@msn.com *Cc:* Grace Githaiga *Subject:* Re: [kictanet] Safaricom faces M-Pesa break up in market dominance war
The thing is that report is already 'leaked' or how else would Jaindi be chambuaring it for us. So it will be interesting to see the final report that is 'undergoing internal review'. And I guess we can interpret this 'reviewing' in different ways. But you also raise a good point. What were the TORs? Was Safaricom already declared dominant and therefore these specific recommendations? Did the Consultant draw these recommendations based on opinions from some quarters?
Look at this from the article:"*The report has also recommended ‘replicability of retail tariffs’ meaning that whenever Safaricom is deciding a promotion or a loyalty scheme - for instance ‘Bonga points’ or ‘Storo’ - the regulator must check and ensure that the offer is being profitably replicated by a reasonably efficient competitor". * Really? So Companies have no independence in deciding on their promotional products to attract more customers?
In addition, I thought we have a Competition Authority that should deal with competition matters? Yes?
Wacha tungonjee hiyo ripoti after it has been 'reviewed'.
Best regards
Githaiga, Grace
On Thursday, 23-02-2017 at 16:21 Ali Hussein wrote:
GG and all
I'm really curious:-
1. This document seemedvery loaded. And it seems that it has gone beyond its mandate? Were theConsultants asked to provide recommendations to remedy a 'Dominant' position?it would be good if we could have seen the TOR for this assignment.
To quote the article:-
2. Safaricom chief executive Bob Collymore said he had not seenthereport, but bristled at the prospect of an external party ordering thecompany to break up its business.
“I am pretty hostile to the idea. Wecan’t have other people dictating whether we break up our company or not,” hesaid.
Absolutely. I can't blame him for that.
It also seems like the Regulator is Regulating Safaricom for thecompetition not for the consumer
- if of course the leaked report is to be believed.
Then the leaked document talks about the possibility of splitting M-Pesa from Safaricom but stopping shot of making the split permanent - as in split them but let them remain under one legal entity. In commercial terms this is known as creating 'Chinese Walls'. We all know how that works.
IT NEVER WORKS!!
Besides which. Breaking up companies is simply a Regulatory tool fit for the AT&Ts, Standard Oils (which by the way is back as one huge conglomerate after being split into more than 50 companies) of this world.
3. This is the information age. The Networked Age, The Millenial Age. The core potential customers don't care about Nationality, colour, creed or whatever else. All they care about is What have you done for me lately? or better still - What can you do for me now?
Its clear Safaricom has earned its strips. Remedying market power abuse cannot be to split up the company. The idea that you punish a successful company by cutting it into pieces is preposterous in 2017.
4. CA, we would like to see the report before 'internal' review. We would like to see it before it is edited. This is the age of transparency. We would hope that the report we finally see as the community will look the same as the one Jaindi Kisero seems to be privy to.
Share the report already...
*AliHussein*
*Principal*
*Hussein & Associates*
Tel: +254 713 601113 <+254%20713%20601113>
Twitter: @AliHKassim
Skype: abu-jomo
LinkedIn: http://ke.linkedin.com/in/alihkassim
13th Floor , Delta Towers, Oracle Wing,
Chiromo Road, Westlands,
Nairobi, Kenya.
Any information of a personal nature expressed in this email are purely mine and do not necessarily reflect the official positions of the organizations that I work with.
On Thu, Feb 23, 2017 at 1:32 PM, Grace Githaiga via kictanet < kictanet@lists.kictanet.or.ke> wrote:
As the draft Dominance report undergoes internal review at CA, Jaindi Kisero continues to provide some snapshots.
"Telecoms operator Safaricom could be forced to hive off its popular mobile money service M-Pesa if sector regulator, the CA, moves to implement recommendations of a market dominance report.
Separating the highly profitable mobile money service from Safaricom’s core telecoms business – commonly referred to as functional separation - is the gist of a raft of recommendations that international consultants - Analysys Mason - have made in a yet-to be published reportseen by the Business Daily."
More details:http://www.nation.co.ke/business/Safaricom-faces-M-P esa-break-up-in-market-dominance-war-/996-3824618-vdv5gw/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
"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.
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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.
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.
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The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
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The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
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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.
-- Grace Mutung'u Skype: gracebomu Twitter: @Bomu <http://www.diplointernetgovernance.org/profile/GraceMutungu> PGP ID : 0x33A3450F
Preach Grace. PP is becoming a sham. Making their decision public only at the end of the process satisfies our Article 35 rights, albeit halfway. I would have thought part of that process is hearing the views of both the learned and unlearned. Tarehe Jumatatu, Mac 6, 2017 saa 05:49 Grace B via kictanet < kictanet@lists.kictanet.or.ke> aliandika:
As we struggle to understand what public participation means..... The schedule of events is interesting Rachel, and it perhaps explains why there is already public discussion of a yet to be concluded report. It may be the public's way of reminding the regulator that we are also affected by competition decisions and discussions on this are not only a matter between regulators and licensees. When different stakeholders will give their input at different times.....does that mean that different stakeholder views are weighted differently? Would for instance, input by the public at public release stage still count even if the regulators and licensees have previously agreed on some aspects?
2017-03-06 3:54 GMT+03:00 Ali Hussein via kictanet < kictanet@lists.kictanet.or.ke>:
Thanks Rachel.
*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
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On 4 Mar 2017, at 10:27 PM, Alwala, Rachel <Alwala@ca.go.ke> wrote:
Hi Ali,
Karibu. CA’s has always and will always operate within its legal mandate. The Competition Study draft report is under review. This process will be completed in mid April considering we have to work hand in hand with the Competition Authority of Kenya (CAK) and Licensees then later publicly release it in May. There is a due process so please be assured you will have a chance to interact with it.
Regards,
Rachel
From: Ali Hussein <ali@hussein.me.ke> Date: Friday, March 3, 2017 at 5:05 PM To: KICTAnet Discussions <kictanet@lists.kictanet.or.ke> Cc: Rachel <alwala@ca.go.ke> Subject: Re: [kictanet] Safaricom faces M-Pesa break up in market dominance war
Rachel
I'm impressed by your elaborate answer. Very informative and based on legal grounds.
I'm curious however when the community will have a chance to 'chambua' the Dominance Report?
*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 3 Mar 2017, at 4:20 PM, Alwala, Rachel via kictanet < kictanet@lists.kictanet.or.ke> wrote:
Hi Victor and listers,
Based on the questions you raise, allow us to draw the distinction and points of convergence on the roles of CA and CAK with respect to powers over competition matters and on dominance declaration.
*Powers over competition matters*
It is important to note that both institutions have powers over competition matters in the ICT sector. The Communication Authority has both ex-ante and ex-post jurisdiction while the Competition Authority has only ex-post jurisdiction. Ex ante regulation is the setting of rules and obligations to be adhered to by service providers (before the event) deemed to be in a position of significant market power which, either in itself or through possible abuse of such a position, may impair competition to the detriment of consumer welfare. Examples of ex ante rules that are focussed on wholesale services such as interconnection (applicable to all networks), access to USSD channel ( applicable to mobile money platforms) etc, where each network is deemed to have monopoly over its own network when terminating calls from, or providing access to other networks.The philosophy behind Ex post regulation punishes abuse of dominance. The telecommunications and the ICT sector in general applies both forms of regulation.
The Communication Authority's powers in relation to competition are derived from the Kenya Information and Communications Act 1998(as amended in 2013 and 2015) (KICA). These powers include:
i. the promotion of competition (section 23(2)(b))
ii. ex-ante and ex-post jurisdiction (sections 84Q, 84R, 84S and 84T)
iii. determining which licensees are “dominant in a relevant market” (section 84W).
On the other hand, the Competition Authority derives its mandate from the Competition Act, 2010 (with the 2012 and 2014 amendments) (Competition Act). These powers include:
i. ex-post (with some powers in relation to market inquiries)
ii. to investigate complaints and markets to establish if there has been an abuse of dominance or anti-competitive behaviour (including restrictive trade practices) (Parts III, IV and V of the Competition Act)
*Definition of Dominance*
Notably, the definition of a dominant operator in both Kenya Information and Communication Act and Competition Act is similar.
The Competition Act defines a dominant position as follows:
*S4(3) of the Act*:
A person has a dominant position in a market if the person –
(a) produces, supplies, distributes or otherwise controls not less than one-half of the total goods of any description that are produced, supplied or distributed in Kenya or any substantial part thereof; or
(b) provides or otherwise controls not less than one-half of the services that are rendered in Kenya or any substantial part thereof.”
In the 2015 amendment of KICA the definition of “dominant telecommunications provider” cross-references s4 and 23 of the Competition Act i.e. A person has a dominant position in a market if the person –
(a) produces, supplies, distributes or otherwise controls not less than one-half of the total goods of any description that are produced, supplied or distributed in Kenya or any substantial part thereof; or
(b) provides or otherwise controls not less than one-half of the services that are rendered in Kenya or any substantial part thereof
*Power over Dominance*
On matters of dominance, KICA confers the CA with primary decision-making powers in this regard. Particularly, s84W “*The Commission may, in consultation with the Competition Authority of Kenya* and after due process, declare a person or institution by notice in the Gazette, to be a “dominant telecommunications service provider” for the purposes of this Act”.
Moreover, the Fair Competition and Equality of Treatment Regulations, 2010 expounds more on how the Authority will go about the process of declaration of dominance. For the avoidance of doubt, the Kenya constitution 2010, envisaged the creation of an independent regulator,free from both commercial and political interests; and which the Supreme Court re-affirmed that that envisaged independent regulator is the CA.
I hope that sheds some light that can inform discussions.
Regards,
Rachel
From: kictanet <kictanet-bounces+alwala=ca.go.ke@lists.kictanet.or.ke> on behalf of KICTAnet Discussions <kictanet@lists.kictanet.or.ke> Reply-To: KICTAnet Discussions <kictanet@lists.kictanet.or.ke> Date: Friday, February 24, 2017 at 1:41 PM To: Rachel <alwala@ca.go.ke> Cc: 'Victor Kapiyo' <vkapiyo@gmail.com> Subject: Re: [kictanet] Safaricom faces M-Pesa break up in market dominance war
I would be interested to understand from CA, the role of the Competition Authority in this discussion vis its mandate under the Competition Act,2010, and why the Communications Authority continues to have a role on matters competition. IMO, I think it would be prudent to have the Competition Authority take the lead on this question given its mandate under the law.
*Victor Kapiyo*
Advocate of the High Court of Kenya & Commissioner for Oaths *Suite No. 8, Centro House, Westlands, Nairobi* *Office Tel: 020 440 4410; Cell: 0721 847 178 * ==================================================== *“Your attitude, not your aptitude, will determine your altitude” Zig Ziglar*
On 23 February 2017 at 23:55, Gabriel via kictanet < kictanet@lists.kictanet.or.ke> wrote:
Guys, Competition Authority refused to be involved in matters between Safcom and the regulator. Back in 2015, CAK, wrote to CA and and asked if Safcom had abused their position. From DG of CA, to CS Matiang'i and the then PS Tiampati, no one was able to reply to that question. Read below;
http://www.businessdailyafrica.com/Corporate-News/Reprieve-Safaricom-CAK-ref...
So if you look at the grand scheme of things splitting Safcom is going to be done so as to create room to expedite growth room for another player who I will NOT name now. But look very closely. I mean very closely ....
Get Outlook for iOS <https://aka.ms/o0ukef>
------------------------------ *From:* kictanet <kictanet-bounces+gwarigi=msn.com@lists.kictanet.or.ke> on behalf of Grace Githaiga via kictanet <kictanet@lists.kictanet.or.ke> *Sent:* Thursday, February 23, 2017 5:01:44 PM *To:* gwarigi@msn.com *Cc:* Grace Githaiga *Subject:* Re: [kictanet] Safaricom faces M-Pesa break up in market dominance war
The thing is that report is already 'leaked' or how else would Jaindi be chambuaring it for us. So it will be interesting to see the final report that is 'undergoing internal review'. And I guess we can interpret this 'reviewing' in different ways. But you also raise a good point. What were the TORs? Was Safaricom already declared dominant and therefore these specific recommendations? Did the Consultant draw these recommendations based on opinions from some quarters?
Look at this from the article:"*The report has also recommended ‘replicability of retail tariffs’ meaning that whenever Safaricom is deciding a promotion or a loyalty scheme - for instance ‘Bonga points’ or ‘Storo’ - the regulator must check and ensure that the offer is being profitably replicated by a reasonably efficient competitor". * Really? So Companies have no independence in deciding on their promotional products to attract more customers?
In addition, I thought we have a Competition Authority that should deal with competition matters? Yes?
Wacha tungonjee hiyo ripoti after it has been 'reviewed'.
Best regards
Githaiga, Grace
On Thursday, 23-02-2017 at 16:21 Ali Hussein wrote:
GG and all
I'm really curious:-
1. This document seemedvery loaded. And it seems that it has gone beyond its mandate? Were theConsultants asked to provide recommendations to remedy a 'Dominant' position?it would be good if we could have seen the TOR for this assignment.
To quote the article:-
2. Safaricom chief executive Bob Collymore said he had not seenthereport, but bristled at the prospect of an external party ordering thecompany to break up its business.
“I am pretty hostile to the idea. Wecan’t have other people dictating whether we break up our company or not,” hesaid.
Absolutely. I can't blame him for that.
It also seems like the Regulator is Regulating Safaricom for thecompetition not for the consumer
- if of course the leaked report is to be believed.
Then the leaked document talks about the possibility of splitting M-Pesa from Safaricom but stopping shot of making the split permanent - as in split them but let them remain under one legal entity. In commercial terms this is known as creating 'Chinese Walls'. We all know how that works.
IT NEVER WORKS!!
Besides which. Breaking up companies is simply a Regulatory tool fit for the AT&Ts, Standard Oils (which by the way is back as one huge conglomerate after being split into more than 50 companies) of this world.
3. This is the information age. The Networked Age, The Millenial Age. The core potential customers don't care about Nationality, colour, creed or whatever else. All they care about is What have you done for me lately? or better still - What can you do for me now?
Its clear Safaricom has earned its strips. Remedying market power abuse cannot be to split up the company. The idea that you punish a successful company by cutting it into pieces is preposterous in 2017.
4. CA, we would like to see the report before 'internal' review. We would like to see it before it is edited. This is the age of transparency. We would hope that the report we finally see as the community will look the same as the one Jaindi Kisero seems to be privy to.
Share the report already...
*AliHussein*
*Principal*
*Hussein & Associates*
Tel: +254 713 601113 <+254%20713%20601113>
Twitter: @AliHKassim
Skype: abu-jomo
LinkedIn: http://ke.linkedin.com/in/alihkassim
13th Floor , Delta Towers, Oracle Wing,
Chiromo Road, Westlands,
Nairobi, Kenya.
Any information of a personal nature expressed in this email are purely mine and do not necessarily reflect the official positions of the organizations that I work with.
On Thu, Feb 23, 2017 at 1:32 PM, Grace Githaiga via kictanet < kictanet@lists.kictanet.or.ke> wrote:
As the draft Dominance report undergoes internal review at CA, Jaindi Kisero continues to provide some snapshots.
"Telecoms operator Safaricom could be forced to hive off its popular mobile money service M-Pesa if sector regulator, the CA, moves to implement recommendations of a market dominance report.
Separating the highly profitable mobile money service from Safaricom’s core telecoms business – commonly referred to as functional separation - is the gist of a raft of recommendations that international consultants - Analysys Mason - have made in a yet-to be published reportseen by the Business Daily."
More details: http://www.nation.co.ke/business/Safaricom-faces-M-Pesa-break-up-in-market-d...
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.
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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.
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.
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The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
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The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
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GB Maybe KICTAnet needs to hold a Public Participation day for all stakeholders in the sector? To sensitize all of us what that means? We may seat here assuming they know.. I'm still awaiting a substantive feedback from the Ministry regarding the ICT Policy document. 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 6 Mar 2017, at 5:47 AM, Grace B via kictanet <kictanet@lists.kictanet.or.ke> wrote:
As we struggle to understand what public participation means..... The schedule of events is interesting Rachel, and it perhaps explains why there is already public discussion of a yet to be concluded report. It may be the public's way of reminding the regulator that we are also affected by competition decisions and discussions on this are not only a matter between regulators and licensees. When different stakeholders will give their input at different times.....does that mean that different stakeholder views are weighted differently? Would for instance, input by the public at public release stage still count even if the regulators and licensees have previously agreed on some aspects?
2017-03-06 3:54 GMT+03:00 Ali Hussein via kictanet <kictanet@lists.kictanet.or.ke>:
Thanks Rachel.
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 4 Mar 2017, at 10:27 PM, Alwala, Rachel <Alwala@ca.go.ke> wrote:
Hi Ali,
Karibu. CA’s has always and will always operate within its legal mandate. The Competition Study draft report is under review. This process will be completed in mid April considering we have to work hand in hand with the Competition Authority of Kenya (CAK) and Licensees then later publicly release it in May. There is a due process so please be assured you will have a chance to interact with it.
Regards,
Rachel
From: Ali Hussein <ali@hussein.me.ke> Date: Friday, March 3, 2017 at 5:05 PM To: KICTAnet Discussions <kictanet@lists.kictanet.or.ke> Cc: Rachel <alwala@ca.go.ke> Subject: Re: [kictanet] Safaricom faces M-Pesa break up in market dominance war
Rachel
I'm impressed by your elaborate answer. Very informative and based on legal grounds.
I'm curious however when the community will have a chance to 'chambua' the Dominance Report?
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 3 Mar 2017, at 4:20 PM, Alwala, Rachel via kictanet <kictanet@lists.kictanet.or.ke> wrote:
Hi Victor and listers,
Based on the questions you raise, allow us to draw the distinction and points of convergence on the roles of CA and CAK with respect to powers over competition matters and on dominance declaration.
Powers over competition matters
It is important to note that both institutions have powers over competition matters in the ICT sector. The Communication Authority has both ex-ante and ex-post jurisdiction while the Competition Authority has only ex-post jurisdiction. Ex ante regulation is the setting of rules and obligations to be adhered to by service providers (before the event) deemed to be in a position of significant market power which, either in itself or through possible abuse of such a position, may impair competition to the detriment of consumer welfare. Examples of ex ante rules that are focussed on wholesale services such as interconnection (applicable to all networks), access to USSD channel ( applicable to mobile money platforms) etc, where each network is deemed to have monopoly over its own network when terminating calls from, or providing access to other networks.The philosophy behind Ex post regulation punishes abuse of dominance. The telecommunications and the ICT sector in general applies both forms of regulation.
The Communication Authority's powers in relation to competition are derived from the Kenya Information and Communications Act 1998(as amended in 2013 and 2015) (KICA). These powers include:
i. the promotion of competition (section 23(2)(b))
ii. ex-ante and ex-post jurisdiction (sections 84Q, 84R, 84S and 84T)
iii. determining which licensees are “dominant in a relevant market” (section 84W).
On the other hand, the Competition Authority derives its mandate from the Competition Act, 2010 (with the 2012 and 2014 amendments) (Competition Act). These powers include:
i. ex-post (with some powers in relation to market inquiries)
ii. to investigate complaints and markets to establish if there has been an abuse of dominance or anti-competitive behaviour (including restrictive trade practices) (Parts III, IV and V of the Competition Act)
Definition of Dominance
Notably, the definition of a dominant operator in both Kenya Information and Communication Act and Competition Act is similar.
The Competition Act defines a dominant position as follows:
S4(3) of the Act:
A person has a dominant position in a market if the person –
(a) produces, supplies, distributes or otherwise controls not less than one-half of the total goods of any description that are produced, supplied or distributed in Kenya or any substantial part thereof; or
(b) provides or otherwise controls not less than one-half of the services that are rendered in Kenya or any substantial part thereof.”
In the 2015 amendment of KICA the definition of “dominant telecommunications provider” cross-references s4 and 23 of the Competition Act i.e. A person has a dominant position in a market if the person –
(a) produces, supplies, distributes or otherwise controls not less than one-half of the total goods of any description that are produced, supplied or distributed in Kenya or any substantial part thereof; or
(b) provides or otherwise controls not less than one-half of the services that are rendered in Kenya or any substantial part thereof
Power over Dominance
On matters of dominance, KICA confers the CA with primary decision-making powers in this regard. Particularly, s84W “The Commission may, in consultation with the Competition Authority of Kenya and after due process, declare a person or institution by notice in the Gazette, to be a “dominant telecommunications service provider” for the purposes of this Act”.
Moreover, the Fair Competition and Equality of Treatment Regulations, 2010 expounds more on how the Authority will go about the process of declaration of dominance. For the avoidance of doubt, the Kenya constitution 2010, envisaged the creation of an independent regulator,free from both commercial and political interests; and which the Supreme Court re-affirmed that that envisaged independent regulator is the CA.
I hope that sheds some light that can inform discussions.
Regards,
Rachel
From: kictanet <kictanet-bounces+alwala=ca.go.ke@lists.kictanet.or.ke> on behalf of KICTAnet Discussions <kictanet@lists.kictanet.or.ke> Reply-To: KICTAnet Discussions <kictanet@lists.kictanet.or.ke> Date: Friday, February 24, 2017 at 1:41 PM To: Rachel <alwala@ca.go.ke> Cc: 'Victor Kapiyo' <vkapiyo@gmail.com> Subject: Re: [kictanet] Safaricom faces M-Pesa break up in market dominance war
I would be interested to understand from CA, the role of the Competition Authority in this discussion vis its mandate under the Competition Act,2010, and why the Communications Authority continues to have a role on matters competition. IMO, I think it would be prudent to have the Competition Authority take the lead on this question given its mandate under the law.
Victor Kapiyo
Advocate of the High Court of Kenya & Commissioner for Oaths Suite No. 8, Centro House, Westlands, Nairobi Office Tel: 020 440 4410; Cell: 0721 847 178 ==================================================== “Your attitude, not your aptitude, will determine your altitude” Zig Ziglar
On 23 February 2017 at 23:55, Gabriel via kictanet <kictanet@lists.kictanet.or.ke> wrote: Guys, Competition Authority refused to be involved in matters between Safcom and the regulator. Back in 2015, CAK, wrote to CA and and asked if Safcom had abused their position. From DG of CA, to CS Matiang'i and the then PS Tiampati, no one was able to reply to that question. Read below; http://www.businessdailyafrica.com/Corporate-News/Reprieve-Safaricom-CAK-ref...
So if you look at the grand scheme of things splitting Safcom is going to be done so as to create room to expedite growth room for another player who I will NOT name now. But look very closely. I mean very closely ....
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From: kictanet <kictanet-bounces+gwarigi=msn.com@lists.kictanet.or.ke> on behalf of Grace Githaiga via kictanet <kictanet@lists.kictanet.or.ke> Sent: Thursday, February 23, 2017 5:01:44 PM To: gwarigi@msn.com Cc: Grace Githaiga Subject: Re: [kictanet] Safaricom faces M-Pesa break up in market dominance war
The thing is that report is already 'leaked' or how else would Jaindi be chambuaring it for us. So it will be interesting to see the final report that is 'undergoing internal review'. And I guess we can interpret this 'reviewing' in different ways. But you also raise a good point. What were the TORs? Was Safaricom already declared dominant and therefore these specific recommendations? Did the Consultant draw these recommendations based on opinions from some quarters?
Look at this from the article:"The report has also recommended ‘replicability of retail tariffs’ meaning that whenever Safaricom is deciding a promotion or a loyalty scheme - for instance ‘Bonga points’ or ‘Storo’ - the regulator must check and ensure that the offer is being profitably replicated by a reasonably efficient competitor". Really? So Companies have no independence in deciding on their promotional products to attract more customers?
In addition, I thought we have a Competition Authority that should deal with competition matters? Yes?
Wacha tungonjee hiyo ripoti after it has been 'reviewed'.
Best regards
Githaiga, Grace
On Thursday, 23-02-2017 at 16:21 Ali Hussein wrote: GG and all
I'm really curious:-
1.
This document seemedvery loaded. And it seems that it has gone beyond its mandate? Were theConsultants asked to provide recommendations to remedy a 'Dominant' position?it would be good if we could have seen the TOR for this assignment. To quote the article:-
2.
Safaricom chief executive Bob Collymore said he had not seenthereport, but bristled at the prospect of an external party ordering thecompany to break up its business.
“I am pretty hostile to the idea. Wecan’t have other people dictating whether we break up our company or not,” hesaid.
Absolutely. I can't blame him for that.
It also seems like the Regulator is Regulating Safaricom for thecompetition not for the consumer
- if of course the leaked report is to be believed.
Then the leaked document talks about the possibility of splitting M-Pesa from Safaricom but stopping shot of making the split permanent - as in split them but let them remain under one legal entity. In commercial terms this is known as creating 'Chinese Walls'. We all know how that works.
IT NEVER WORKS!!
Besides which. Breaking up companies is simply a Regulatory tool fit for the AT&Ts, Standard Oils (which by the way is back as one huge conglomerate after being split into more than 50 companies) of this world.
3. This is the information age. The Networked Age, The Millenial Age. The core potential customers don't care about Nationality, colour, creed or whatever else. All they care about is What have you done for me lately? or better still - What can you do for me now?
Its clear Safaricom has earned its strips. Remedying market power abuse cannot be to split up the company. The idea that you punish a successful company by cutting it into pieces is preposterous in 2017.
4. CA, we would like to see the report before 'internal' review. We would like to see it before it is edited. This is the age of transparency. We would hope that the report we finally see as the community will look the same as the one Jaindi Kisero seems to be privy to.
Share the report already...
AliHussein
Principal
Hussein & Associates
Tel: +254 713 601113 Twitter: @AliHKassim
Skype: abu-jomo
LinkedIn: http://ke.linkedin.com/in/alihkassim
13th Floor , Delta Towers, Oracle Wing,
Chiromo Road, Westlands,
Nairobi, Kenya.
Any information of a personal nature expressed in this email are purely mine and do not necessarily reflect the official positions of the organizations that I work with.
On Thu, Feb 23, 2017 at 1:32 PM, Grace Githaiga via kictanet <kictanet@lists.kictanet.or.ke> wrote: As the draft Dominance report undergoes internal review at CA, Jaindi Kisero continues to provide some snapshots.
"Telecoms operator Safaricom could be forced to hive off its popular mobile money service M-Pesa if sector regulator, the CA, moves to implement recommendations of a market dominance report.
Separating the highly profitable mobile money service from Safaricom’s core telecoms business – commonly referred to as functional separation - is the gist of a raft of recommendations that international consultants - Analysys Mason - have made in a yet-to be published reportseen by the Business Daily."
More details:http://www.nation.co.ke/business/Safaricom-faces-M-Pesa-break-up-in-market-d...
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.
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The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
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"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.
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Hi GG and fellow listers, Public participation is at the very core of CA’s regulatory activities. As you will appreciate the Competition study is being undertaken by an external consultant and has to undergo various stages to ensure it is ready for discussion with stakeholders for their inputs. The report will be subjected to stakeholder discussions in May as I indicated in my email. Be rest assured you will be invited to give your views. Regards, Rachel From: kictanet <kictanet-bounces+alwala=ca.go.ke@lists.kictanet.or.ke<mailto:kictanet-bounces+alwala=ca.go.ke@lists.kictanet.or.ke>> on behalf of KICTAnet Discussions <kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke>> Reply-To: KICTAnet Discussions <kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke>> Date: Monday, March 6, 2017 at 5:47 AM To: Rachel <alwala@ca.go.ke<mailto:alwala@ca.go.ke>> Cc: Grace Mutung'u <nmutungu@gmail.com<mailto:nmutungu@gmail.com>> Subject: Re: [kictanet] Safaricom faces M-Pesa break up in market dominance war As we struggle to understand what public participation means..... The schedule of events is interesting Rachel, and it perhaps explains why there is already public discussion of a yet to be concluded report. It may be the public's way of reminding the regulator that we are also affected by competition decisions and discussions on this are not only a matter between regulators and licensees. When different stakeholders will give their input at different times.....does that mean that different stakeholder views are weighted differently? Would for instance, input by the public at public release stage still count even if the regulators and licensees have previously agreed on some aspects? 2017-03-06 3:54 GMT+03:00 Ali Hussein via kictanet <kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke>>: Thanks Rachel. Ali Hussein Principal Hussein & Associates +254 0713 601113<tel:+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 4 Mar 2017, at 10:27 PM, Alwala, Rachel <Alwala@ca.go.ke<mailto:Alwala@ca.go.ke>> wrote: Hi Ali, Karibu. CA’s has always and will always operate within its legal mandate. The Competition Study draft report is under review. This process will be completed in mid April considering we have to work hand in hand with the Competition Authority of Kenya (CAK) and Licensees then later publicly release it in May. There is a due process so please be assured you will have a chance to interact with it. Regards, Rachel From: Ali Hussein <ali@hussein.me.ke<mailto:ali@hussein.me.ke>> Date: Friday, March 3, 2017 at 5:05 PM To: KICTAnet Discussions <kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke>> Cc: Rachel <alwala@ca.go.ke<mailto:alwala@ca.go.ke>> Subject: Re: [kictanet] Safaricom faces M-Pesa break up in market dominance war Rachel I'm impressed by your elaborate answer. Very informative and based on legal grounds. I'm curious however when the community will have a chance to 'chambua' the Dominance Report? Ali Hussein Principal Hussein & Associates +254 0713 601113<tel:+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 3 Mar 2017, at 4:20 PM, Alwala, Rachel via kictanet <kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke>> wrote: Hi Victor and listers, Based on the questions you raise, allow us to draw the distinction and points of convergence on the roles of CA and CAK with respect to powers over competition matters and on dominance declaration. Powers over competition matters It is important to note that both institutions have powers over competition matters in the ICT sector. The Communication Authority has both ex-ante and ex-post jurisdiction while the Competition Authority has only ex-post jurisdiction. Ex ante regulation is the setting of rules and obligations to be adhered to by service providers (before the event) deemed to be in a position of significant market power which, either in itself or through possible abuse of such a position, may impair competition to the detriment of consumer welfare. Examples of ex ante rules that are focussed on wholesale services such as interconnection (applicable to all networks), access to USSD channel ( applicable to mobile money platforms) etc, where each network is deemed to have monopoly over its own network when terminating calls from, or providing access to other networks.The philosophy behind Ex post regulation punishes abuse of dominance. The telecommunications and the ICT sector in general applies both forms of regulation. The Communication Authority's powers in relation to competition are derived from the Kenya Information and Communications Act 1998(as amended in 2013 and 2015) (KICA). These powers include: i. the promotion of competition (section 23(2)(b)) ii. ex-ante and ex-post jurisdiction (sections 84Q, 84R, 84S and 84T) iii. determining which licensees are “dominant in a relevant market” (section 84W). On the other hand, the Competition Authority derives its mandate from the Competition Act, 2010 (with the 2012 and 2014 amendments) (Competition Act). These powers include: i. ex-post (with some powers in relation to market inquiries) ii. to investigate complaints and markets to establish if there has been an abuse of dominance or anti-competitive behaviour (including restrictive trade practices) (Parts III, IV and V of the Competition Act) Definition of Dominance Notably, the definition of a dominant operator in both Kenya Information and Communication Act and Competition Act is similar. The Competition Act defines a dominant position as follows: S4(3) of the Act: A person has a dominant position in a market if the person – (a) produces, supplies, distributes or otherwise controls not less than one-half of the total goods of any description that are produced, supplied or distributed in Kenya or any substantial part thereof; or (b) provides or otherwise controls not less than one-half of the services that are rendered in Kenya or any substantial part thereof.” In the 2015 amendment of KICA the definition of “dominant telecommunications provider” cross-references s4 and 23 of the Competition Act i.e. A person has a dominant position in a market if the person – (a) produces, supplies, distributes or otherwise controls not less than one-half of the total goods of any description that are produced, supplied or distributed in Kenya or any substantial part thereof; or (b) provides or otherwise controls not less than one-half of the services that are rendered in Kenya or any substantial part thereof Power over Dominance On matters of dominance, KICA confers the CA with primary decision-making powers in this regard. Particularly, s84W “The Commission may, in consultation with the Competition Authority of Kenya and after due process, declare a person or institution by notice in the Gazette, to be a “dominant telecommunications service provider” for the purposes of this Act”. Moreover, the Fair Competition and Equality of Treatment Regulations, 2010 expounds more on how the Authority will go about the process of declaration of dominance. For the avoidance of doubt, the Kenya constitution 2010, envisaged the creation of an independent regulator,free from both commercial and political interests; and which the Supreme Court re-affirmed that that envisaged independent regulator is the CA. I hope that sheds some light that can inform discussions. Regards, Rachel From: kictanet <kictanet-bounces+alwala=ca.go.ke@lists.kictanet.or.ke<mailto:kictanet-bounces+alwala=ca.go.ke@lists.kictanet.or.ke>> on behalf of KICTAnet Discussions <kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke>> Reply-To: KICTAnet Discussions <kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke>> Date: Friday, February 24, 2017 at 1:41 PM To: Rachel <alwala@ca.go.ke<mailto:alwala@ca.go.ke>> Cc: 'Victor Kapiyo' <vkapiyo@gmail.com<mailto:vkapiyo@gmail.com>> Subject: Re: [kictanet] Safaricom faces M-Pesa break up in market dominance war I would be interested to understand from CA, the role of the Competition Authority in this discussion vis its mandate under the Competition Act,2010, and why the Communications Authority continues to have a role on matters competition. IMO, I think it would be prudent to have the Competition Authority take the lead on this question given its mandate under the law. Victor Kapiyo Advocate of the High Court of Kenya & Commissioner for Oaths Suite No. 8, Centro House, Westlands, Nairobi Office Tel: 020 440 4410; Cell: 0721 847 178 ==================================================== “Your attitude, not your aptitude, will determine your altitude” Zig Ziglar On 23 February 2017 at 23:55, Gabriel via kictanet <kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke>> wrote: Guys, Competition Authority refused to be involved in matters between Safcom and the regulator. Back in 2015, CAK, wrote to CA and and asked if Safcom had abused their position. From DG of CA, to CS Matiang'i and the then PS Tiampati, no one was able to reply to that question. Read below; http://www.businessdailyafrica.com/Corporate-News/Reprieve-Safaricom-CAK-ref... So if you look at the grand scheme of things splitting Safcom is going to be done so as to create room to expedite growth room for another player who I will NOT name now. But look very closely. I mean very closely .... Get Outlook for iOS<https://aka.ms/o0ukef> ________________________________ From: kictanet <kictanet-bounces+gwarigi=msn.com@lists.kictanet.or.ke<mailto:msn.com@lists.kictanet.or.ke>> on behalf of Grace Githaiga via kictanet <kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke>> Sent: Thursday, February 23, 2017 5:01:44 PM To: gwarigi@msn.com<mailto:gwarigi@msn.com> Cc: Grace Githaiga Subject: Re: [kictanet] Safaricom faces M-Pesa break up in market dominance war The thing is that report is already 'leaked' or how else would Jaindi be chambuaring it for us. So it will be interesting to see the final report that is 'undergoing internal review'. And I guess we can interpret this 'reviewing' in different ways. But you also raise a good point. What were the TORs? Was Safaricom already declared dominant and therefore these specific recommendations? Did the Consultant draw these recommendations based on opinions from some quarters? Look at this from the article:"The report has also recommended ‘replicability of retail tariffs’ meaning that whenever Safaricom is deciding a promotion or a loyalty scheme - for instance ‘Bonga points’ or ‘Storo’ - the regulator must check and ensure that the offer is being profitably replicated by a reasonably efficient competitor". Really? So Companies have no independence in deciding on their promotional products to attract more customers? In addition, I thought we have a Competition Authority that should deal with competition matters? Yes? Wacha tungonjee hiyo ripoti after it has been 'reviewed'. Best regards Githaiga, Grace On Thursday, 23-02-2017 at 16:21 Ali Hussein wrote: GG and all I'm really curious:- 1. This document seemedvery loaded. And it seems that it has gone beyond its mandate? Were theConsultants asked to provide recommendations to remedy a 'Dominant' position?it would be good if we could have seen the TOR for this assignment. To quote the article:- 2. Safaricom chief executive Bob Collymore said he had not seenthereport, but bristled at the prospect of an external party ordering thecompany to break up its business. “I am pretty hostile to the idea. Wecan’t have other people dictating whether we break up our company or not,” hesaid. Absolutely. I can't blame him for that. It also seems like the Regulator is Regulating Safaricom for thecompetition not for the consumer - if of course the leaked report is to be believed. Then the leaked document talks about the possibility of splitting M-Pesa from Safaricom but stopping shot of making the split permanent - as in split them but let them remain under one legal entity. In commercial terms this is known as creating 'Chinese Walls'. We all know how that works. IT NEVER WORKS!! Besides which. Breaking up companies is simply a Regulatory tool fit for the AT&Ts, Standard Oils (which by the way is back as one huge conglomerate after being split into more than 50 companies) of this world. 3. This is the information age. The Networked Age, The Millenial Age. The core potential customers don't care about Nationality, colour, creed or whatever else. All they care about is What have you done for me lately? or better still - What can you do for me now? Its clear Safaricom has earned its strips. Remedying market power abuse cannot be to split up the company. The idea that you punish a successful company by cutting it into pieces is preposterous in 2017. 4. CA, we would like to see the report before 'internal' review. We would like to see it before it is edited. This is the age of transparency. We would hope that the report we finally see as the community will look the same as the one Jaindi Kisero seems to be privy to. Share the report already... AliHussein Principal Hussein & Associates Tel: +254 713 601113<tel:+254%20713%20601113> Twitter: @AliHKassim Skype: abu-jomo LinkedIn: http://ke.linkedin.com/in/alihkassim 13th Floor , Delta Towers, Oracle Wing, Chiromo Road, Westlands, Nairobi, Kenya. Any information of a personal nature expressed in this email are purely mine and do not necessarily reflect the official positions of the organizations that I work with. On Thu, Feb 23, 2017 at 1:32 PM, Grace Githaiga via kictanet <kictanet@lists.kictanet.or.ke> wrote: As the draft Dominance report undergoes internal review at CA, Jaindi Kisero continues to provide some snapshots. "Telecoms operator Safaricom could be forced to hive off its popular mobile money service M-Pesa if sector regulator, the CA, moves to implement recommendations of a market dominance report. Separating the highly profitable mobile money service from Safaricom’s core telecoms business – commonly referred to as functional separation - is the gist of a raft of recommendations that international consultants - Analysys Mason - have made in a yet-to be published reportseen by the Business Daily." More details:http://www.nation.co.ke/business/Safaricom-faces-M-Pesa-break-up-in-market-d... 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/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. 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<http://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<mailto: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/vkapiyo%40gmail.com The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development. KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications. _______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke<mailto: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. _______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke<mailto: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/nmutungu%40gmail.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. -- Grace Mutung'u Skype: gracebomu Twitter: @Bomu <http://www.diplointernetgovernance.org/profile/GraceMutungu> PGP ID : 0x33A3450F
participants (7)
-
Ali Hussein -
Alwala, Rachel -
Gabriel -
Grace B -
Grace Githaiga -
kanini mutemi -
Victor Kapiyo