Are we really trying to say Safaricom is not Dominant? Controlling 80% of the market and probably 90% of the profits. 

How they got there is quite irrelevant. Point is they control the market and that cannot be a good thing. 


On Thu, Jul 9, 2015 at 10:51 AM, Isaac Kiplagat via skunkworks <skunkworks@lists.my.co.ke> wrote:
Three points
1. Competition should be managed without killing innovation- Safaricom is not going to purnished because of their innovations!! The government's objective is to create competitive environment

2. KPLC, KPC are monoploistic companies just like Telcom Kenya before 1998. Tuskeys wanted to buy Ukwala and it was established that if that happens then it could take over 40% of the market share in a liberized market. The sale was stopped at somepoint- Kudos to Competition Authority o Kenya

3. Competition is a global policy issue, the unique thing in Kenya's case is that Safaricom has many division (mobile money, data, Safaricom Business, Voice, Entertainment) which hardly defines its postion in the Telcom market share. In this case Safaricom needs special handling approach.

The secret that airtel have not realized is that it is not about the product, but it is all about the business model. I will try to elaborate this someday.

Regards,
Isaac

On 9 July 2015 at 10:08, Leonard Kore via skunkworks <skunkworks@lists.my.co.ke> wrote:
soo many pros and cons, but this is a case of punishing innovation and superior strategy, sure they are bullies 

On Thu, Jul 9, 2015 at 9:57 AM, Vincent Mosoti via skunkworks <skunkworks@lists.my.co.ke> wrote:
While we still on this case, many start-ups have accused Safaricom of 'stealing' and implementing their ideas. Latest case on daily nation today (http://goo.gl/1PT11Q) . Is this a proof that they(safcom) use all means to remain dominant and control the industry?

On Thu, Jul 9, 2015 at 9:35 AM, Timothy Yegon via skunkworks <skunkworks@lists.my.co.ke> wrote:

If Safaricom is to be broken up for being dominant, what about Kenya Power, Nairobi Water, NHIF or NSSF? Should Naivas, Tusky and Nakumatt be broken up too so that struggling supermarkets like Uchumi can become profitable?


On Thu, 9 Jul 2015 15:59 Jangita via skunkworks <skunkworks@lists.my.co.ke> wrote:
Not if the successful company was set up dubiously, and the dubious few earning the billions are no longer in power... Kenyans forget easily. They probably don't want to share so well, lets just bring them down!
ᐧ

On 9 July 2015 at 07:47, 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.

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