>From a market stand point, what are the chances of YU, Zain, etc recouping the 25M? They cannot start charging the exorbitant rates Safcom had the privilege of charging for internet back then. Hell, even Safcom would have trouble recouping the same amount now (based on data alone, not Mpesa and other products)
The market has changed and the conditions that applied then dont apply now. I am with Bernad on this one - CCK should look for a more complex way of determining the fees rather than a once-all fee.
What is the rationale for CCK charging $25m to acquire 3G? Is there a
universal criteria for these charges or they are determined on as-in
basis?
If there is no justifiable rationale behind this, then Zain should not
pay less than what Safaricom paid for 3G.
Corrections are welcome.
On 03/06/2010, Bernard Owuor <b_owuor@yahoo.com> wrote:
> I think CCK should refund the $25million that was paid by safcom, and desist
> from charging such licensing fees - unless the goal is to protect the
> licensees from spurious competition. As we have seen, the high fee only
> serves to hinder competition - or, are Zain and Orange "spurious"
> competition?
>
> I also think that a pay per use model for levies could be fairer to all,
> than a once-off. If the innovator makes a killing, it's only fairer that CCK
> (GoK?) shares in it. On the other hand, if it's a bad deal, the company
> should not be punished for it.
>
>
> Olive trees are important. They represent everything that roots us, anchors
> us, identifies us and locates us in this world - whether it be belonging to
> a family, a community, a tribe, a nation, a religion or, most of all, a
> place called home.
> - Thomas Friedman - "The Lexus And The Olive Tree"
>
>
>
>
> ________________________________
> From: Moses <mosenetk@gmail.com>
> To: Skunkworks Mailing List <skunkworks@lists.my.co.ke>
> Sent: Wed, June 2, 2010 4:29:59 AM
> Subject: Re: [Skunkworks] Zain to Launch 3G Service in July
>
> Does this line of argument also point towards the guys who got a unified
> license recently should pay all cumulative costs for each category they got
> just like the Safcon and Zain had payed separately? Now that the regulators
> will have costs for licensing and review of mobile money systems, does it
> mean mpesa should be asked to pay those costs(backdated with inflationary
> adjustments)? The easy access of the existing operators into the 3G segment
> will only serve to grow the industry and give us "real" broadband
> countrywide. The CCK should follow the fundamentals on which its created and
> stop falling to political noise so they can effectively regulate the
> industry while representing the public goodwill.
>
>
> On Wed, Jun 2, 2010 at 11:24 AM, Peter Karunyu <pkarunyu@gmail.com> wrote:
>
> On Wed, Jun 2, 2010 at 10:35 AM, Humphrey Ngoiya <hngoiya@yahoo.co.uk>
> wrote:
>>
>>>>
>>>"I still think the fees should remain the same at USD
>>> 25 million. That's
>>>what Safaricom paid, and with inflation the money is even worth less."
>>>
>>>some
>>> time back the nokia 3310 cost around 15K, by your reasoning it should
>>>now cost 20K after factoring in inflation.
>>>Personally, I belive
>>>license fees should be tied to market trends and not history.
>>>
>>The 3310 depreciates over time, a 3G license appreciates because, based on
>> my understanding of how these things work, more Kenyans are getting
>> connected and thus the holder of the license will most likely make more
>> money this year than last year, until such a point that any Kenyan that
>> can be connected is connected, at which point the revenue generated by the
>> business activities allowed by the 3G license will stabilize.
>>
>>Personally, I believe they should all pay the 25m.
>>
>>On other matters, it would be interesting to know how this money is spent
>> by CCK and/or the GoK.
>>
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>
>
>
>
--
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*****************************************************
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