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Safaricom should sue CCK..period.
mozenrat
#101 Posted : Thursday, May 06, 2010 12:18:00 PM
Rank: Veteran

Joined: 5/18/2008
Posts: 796
@Jaguar..

I know its difficult for you to see it...

But tell me, why else would the small potatoes be cheering on the particular rule that @Brewer has expounded on.


Bwana soma the rules kwanza.. the moment you start relying on Capital FM presenters to interpret them for you...

Check this out:
"(3) A licensee shall not apply tariffs that prevent market entry or distort competition" -
- By whose interpretation?? So if Safcom reduces its cross-network tariffs to say 4.90, will they be in contravention? Will they not be "distorting competition"?

and what the hell is this?
"(8) A dominant telecommunications service provider shall comply with guidelines that relate to regulated services that are issued by the Commission."
"(2) The obligations that relate to the provision of a regulated service shall cease when a licensee ceases to be dominant or the market or the market segment becomes competitive."

Why NOT apply the rules uniformly??
Brewer
#102 Posted : Thursday, May 06, 2010 1:46:14 PM
Rank: Member

Joined: 6/24/2008
Posts: 238
Jaguar wrote:
@mozenrat, "the rules will make it MORE difficult for Safaricom to review its charges downwards"...Really?????
There used to be a competition on 98.4 capital fm's the jam afternoon show called fact or bullcrap...your statement is b......p


Jaguar, there was a program ON TV called STRANGER THAN FICTION!It is all true that once declared a dominant player, safaricom will not change tariffs downwards without the 90 days notice. It is the regulations that are b......p!
Djinn
#103 Posted : Tuesday, May 11, 2010 7:55:39 AM
Rank: Elder

Joined: 11/13/2008
Posts: 1,565
mozenrat wrote:
@Djinn..

1. Your statements are contradictory...You say "supa ongea doesn't work" yet "it will cost more to call nine out of 10 Safaricom numbers.". There's a network offering cross network calls at 6 bob as opposed to the 8bob on Supa Ongea. What LOCKS you in really? stability?? innovation?? patriotism (though misguided)??

2. It hasn't used its dominance to undercut any of the other players. Indeed, its the other players who've been playing the price games... and are getting burnt for it.

3. If matatus offer mediocre services, there's the option to use citi hoppa.... but people still stick with Mathrees even where the minibus option exists. If Safcom's services are mediocre, what stops people from moving..


@Mozenrat -

1) Its not the first time we are seeing this - recall EABL and Keroche - I think it all boils down to the same thing. Neither Kingfisher or I can get Summit but we WANT Summit. So is it brand loyalty when I drink a Tusker at Tamambos/Psys/Rezourous? We know that behind the scenes EABL plays hardball with bar owners and distris. True or not. Nor sure what is contradictory - Yu can offer a flat rate across networks but we do not know what interconnection rates they have with SCOM. And out of the 10 people I know with SCOM lines, the lowest they have ever paid for Super Ongea is Kshs 6.

2)No - it has. It knows that 80% of traffic terminates within its network.

3) "but people still stick with Mathrees even where the minibus option exists" - yes they do. And before Michuki, they were packed into vehicles like cargo and subjected to abuse. Could citizens on their own as individuals taken on the matatu sector?
Dash
#104 Posted : Tuesday, May 11, 2010 8:04:08 AM
Rank: Member

Joined: 3/24/2010
Posts: 677
Location: Nairobi
@mozenrat, to digress abit...if you are a frequent public transport user, you would know there is really no difference between citi hoppa,kbs and matatus...they are all below mediocre so thats a bad example!
Djinn
#105 Posted : Tuesday, May 11, 2010 8:12:40 AM
Rank: Elder

Joined: 11/13/2008
Posts: 1,565
mukiha wrote:
@djinn: Protection? Lets go there: give specific instances.


@mukiha - let's remember that 1) the partial privatisation of Safaricom was not kosher to start with - there was no laid down process other than the KCA had been amended to allow for competition in the sector and Kenya had made commitments to WTO to open up the sector from 1999. 2) Not meaning to be a consipracy theorist, but the issue of the 5% Mobitelea has never really been made clear 3) up until the IPO, the govt owned 60% of Safaricom - to allow CCK to shed its milk teeth and grow real chompers in terms of making sure Safaricom meets its licence obligations (mainly Quality of Service) - it would be shooting itself in the foot don't you think? Right now it has divested 25% and after the IPO raked in considerable money. For an outfit that started off with 9000 subscribers, I think GOK has made its money (just as it has with Telkom - I don;t think they really care abt the 49% in TKL) and is now ready to allow CCK to grow teeth.

If I may touch on INDEPENDENT regulation and not relating to SCOM but to TKL (and from this infer that CCK at the time was only allowed to bark but not bite) ...some of you may recall a certain kerfuffle about incoming international traffic being terminated illegally to a private operator based at Lonrho House - that issue was swept under the carpet. The commissioner who made the bust was suspended and later re-instated. Shortly after, to the amazement of many, the "poacher" and the "game keeper" we swapped. I think that instance alone (plus many other that have never come to light since this is a multi billion shilling industry) have set a precedent and I think Charles Njoroge has his head screwed on properly and will seek to turn that tide. Some of the ills date back to before Raphael Tuju being the Minister of Information...

One final piece of pabulum - lets also remember that after KPTC was unbundled - Safaricom got most of the staff in terms of technical staff, legal staff (KPTC was the sector regulator) - and as such carried to itself some cronyism if you like - such that those regulating, knew those operating....


Now that the govt (via TKL) has no interests in SCOM and TKL itself too has 51% foisted upon France Telecom - the road is much more clear for independent regulation that will protect - no string


Jaina
#106 Posted : Tuesday, May 11, 2010 8:13:11 AM
Rank: Member

Joined: 5/13/2008
Posts: 558
Rules are made for to contain the "Dominant" Player.
Dominant Player = Safaricom.
So rules were made to contain Safaricom.

Djinn
#107 Posted : Tuesday, May 11, 2010 8:24:42 AM
Rank: Elder

Joined: 11/13/2008
Posts: 1,565
bkismat
#108 Posted : Tuesday, May 11, 2010 8:30:06 AM
Rank: Elder

Joined: 10/23/2009
Posts: 2,375
From last night's news looks like safaricom won the war.
It is better to keep your mouth closed and let people think you are a fool than to open it and remove all doubt...
-Mark Twain
XSK
#109 Posted : Tuesday, May 11, 2010 8:46:37 AM
Rank: Veteran

Joined: 12/8/2009
Posts: 975
Location: Nairobi
bkismat wrote:
From last night's news looks like safaricom won the war.


Blame this lack of information, on a blackout in our area.

What was in the news regarding this? Applause
You will know that you have arrived when money and time are not mutually exclusive "events" in you life!
bkismat
#110 Posted : Tuesday, May 11, 2010 9:36:09 AM
Rank: Elder

Joined: 10/23/2009
Posts: 2,375
PS Bitange Ndemo said the Gov is ready to talk to the operators and come to some sort of consensus. Telkom Kenya CEO also said the new rules should not just target the dominant player but all the operators.
It is better to keep your mouth closed and let people think you are a fool than to open it and remove all doubt...
-Mark Twain
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