Wasn't Microsoft under similar scrutiny from the EU a couple of years ago?

On Thu, Jul 9, 2015 at 8:17 AM, Job Muriuki via skunkworks <skunkworks@lists.my.co.ke> wrote:
All I gather from this discussion is that we let Safaricom be and the rest to up their game or ship out. 
How good it this to the market and our economy? It's the government's work to ensure there is a level
play field for competition to thrive giving the customers options and value, but currently it's not happening.

Safaricom like all businesses is here to make money not caring who get messed up along the way, the sad 
truth of capitalism so if not "pruned" we will be its slaves before we know it. Look at the employment and 
investment in this sector it's only Safaricom doing serious investments will others are struggling.

Safaricom will grow in revenue collection with no proportional addition of resources human or otherwise but
if other competitors have a piece of the pie we will have better employment numbers both direct and indirect. 






Regards,
Job Muriuki,

Skype: heviejob




On Thu, Jul 9, 2015 at 6:47 AM, geoffrey gitagia via skunkworks <skunkworks@lists.my.co.ke> wrote:

So in short , if anyone becomes too successful.. Tame them so as fo allow the rest to take it easy? …  okay just be sure that the company that you will establish won't fall to because you worked hard and invested so much just to be told that you're too successful for the industry..  Then let's take on facebook and limit their users and give hi 5 a fighting chance… long story short the government should be on airtel and orange  face asking them what they're doing wrong and if they can help not stopping safaricom from making money that's counter productive

On Jul 8, 2015 3:57 PM, "Isaac Kiplagat via skunkworks" <skunkworks@lists.my.co.ke> wrote:
How will Kenya convince an investor to invest in its Telcom industry, when competitors are quiting the market because of  "percieved anticompetitiveness" from Safaricom?  Can a government/CA take sides to improve competitiveness?.

I absolutely agree that complex rules create loopholes. I would therefore recommend that measures be taken on case to case basis to create a working and competitive environment.

International Telcommunication Union (ITU) provides a guideline to regulators on policy issues on competition.





On 8 July 2015 at 14:14, Paul Korir <polariseke@gmail.com> wrote:
Two points:

- The market (consumers) will suffer if there is no competition. However, the government is not the source of competition. Expecting the government to solve the problem is misplaced optimism. The solution to market problems are market solutions. I think that Airtel is not competitive and they are trying to use their lack of competitiveness to mould the market in their favour. What is needed is a worthy competitor to Safaricom. "Pwagu hupata pwaguzi. Set a thief to catch a thief."

- Complex rules make for many loop holes. The rules should be simple. Evolve or die. The more regulation and handholding the government imposes the harder it will be to ensure that each new rule is consistent with previous rules and is not amenable to tweaking. The harder it will be for non-viable companies to be purged. I will not be surprised if Airtel is up for sale soon but who knows whether this will improve their lot.

PK


On 8 July 2015 at 12:05, Isaac Kiplagat <isaac.kiplagat@gmail.com> wrote:
Paul,


There are so many underlying factors that has led to safaricom to be a barrier to competition itself. Innovation is positive gear to leverage  competition.
Safaricom has 3 main products; Mpesa, Data and Voice. They play with three aspects in throwing this people out of market.
1. When zain entered the market with serious investment on voice- Safaricom reduced their voice rates and maximised on Mpesa and Data throwing zain out of the market. There are hundreds of similar  cases.
2. The current ICT policy does not allow bundling of services, safaricom has invisibly bundled data, mpesa and voice by playing around weakness in the policy. This policy need to be updated to tuckle dynamism in the market.

Regards,
Isaac

Innova



On 8 July 2015 at 13:49, Paul Korir via skunkworks <skunkworks@lists.my.co.ke> wrote:
I've been disturbed by the Airtel's claims that Safaricom is dominant. I am no apologist for Safaricom but would not defend the claim that I admire how organised they are.

In order for Airtel's claim to be sustained, they would have to show that they has been equally competitive. They would have to show that it is primarily due to Safaricom's supposed dominance and not their lack of innovation that has let to them being uncompetitive. I think that is a very tough call for them given than they have changed hands thrice (Kencell to Celtel to Zain to Airtel). They would have to show that these brand changes have not had any adverse effect on their market position. Airtel is a pan-African corporation and it could also be the case that their market strategy is homogenous and disregards local cultural differences (given that Kenyans have 'peculiar' habits). I am not aware that Airtel (or any of its previous incarnations) has ever returned a remarkable profit. I only recall once seeing mention of Ksh.64 million profit in either 2006 or 2007.

There are serious consequences riding on this decision. For one, a verdict of Safaricom being dominant will communicate to the market that there are size limits that the government should impose on corporate growth, which could keep multinationals at bay. It will be very interesting to see what the relevant authorities rule.

If anyone has information to the contrary on the above, I stand corrected.

--
Regards,

Paul K. Korir, PhD
+353 86 224 19 66
Ordnung muß sein

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