From Business Daily...

'Safaricom’s rivals want the Central Bank of Kenya to establish a seamless money transfer platform aiming to weaken M-Pesa’s dominance that has become a major battlefront in the war for control of the telecoms market.

In a proposal tabled before the Prime Minister and seen by the Business Daily, Safaricom’s rivals argue that such a platform would remove the high cost barrier that is preventing consumers from moving money across networks.

Though it is possible to send money across the networks, the transfer process remains complex and costs 10 times more than the price of sending money within a network, adding new dimensions to the factors that preventing consumers from changing mobile phone service providers.

Safaricom’s rivals reckon that a seamless platform will loosen each operator’s grip on the mobile money platform pulling down the cost barriers and allowing free movement of money in the economy.

Some of the service providers say the establishment of a central clearing house will offer them headroom to significantly cut costs as they have recently done in the voice calls'



I think this is the way to go..

the argument made by airtel is not about bringing down the price per se it want to use what safaricom has invested in its system and distribution network hence reduce its own cost of doing the same.That explains why they are not rolling up their zap service as they had earlier promised.

I think to ensure growth in this sector telcos should be allowed to innovate and invent solutions that appeal to their target market not try to commoditize rivals solutions.

I dont see why airtel should be advocating for a cause that it does not concerns its customers, since they can reduce their prices in their own money transfer service just as they have done in voice and win the so called locked customers,they just need to lobby for reduction on interconnection charges ,but transfering a solution owned by safaricom to the control of third party( cbk clearing house),That will be killing Innovation.