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Safaricom should sue CCK..period.
Rank: Veteran Joined: 4/1/2009 Posts: 1,885
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muganda wrote:mukiha wrote:It appears that none of the contributors to this thread so far have read "THE KENYA INFORMATION AND COMMUNICATIONS (FAIR COMPETITION AND EQUALITY OF TREATMENT) REGULATIONS, 2010" You can download the regulations HERE: @mukiha thanks for this; I searched and searched and finally found it here Now on reading the document it seems to establish a framework much like would be found in developed countries. So if the application is to Safaricom's disadavantage @mlefu is right and they'd contest in court. But excess profits ('supernormal profits'), tying or product bundling, and predatory pricing ('subsidizing of existing lines'); though not final evidence by themselves, are often found where monopolies exist. out of interest, pray, what would be safaricom's grounds on going to court? more interested in knowing that given that you have admitted that similar regulations seem to be already in existence in other jurisdictions.
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Rank: Veteran Joined: 4/1/2009 Posts: 1,885
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mukiha wrote:This whole saga smells fishy. There is a Monopolies and Prices Commission of Kenya which is a Department of the Ministry of Finance.
Its mandate is to enforce Competition Principles and Rules in accordance with the provisions of the Restrictive Trade Practices, Monopolies and Price Control Act.
Why does CCK want to duplicate a function that is ably handled by another department? the communication act (as amended by, i think, the 2008 amendment act) gives cck the powers and responsibilities to do exactly what they are doing now. nothing really wrong with that. there are no fish in the stock market in this instance. and the restrictive trade practices, monopolies and price control act is a useless piece of legislation that was due an amendment (if not repeal) as soon as it became law. very toothless. it is one of the reasons that kenyans don't seem to appreciate competition law - but that is just my thinking.
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Rank: Elder Joined: 11/7/2007 Posts: 2,182
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the whole debate of this all CRAP, the only that CCK will do is to allow people to "roam" from one network to another, u have the right to do so or not! SO WHY THE FUSS LOVE WHAT YOU DO, DO WHAT YOU LOVE.
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Rank: Member Joined: 10/26/2008 Posts: 380
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Is safaricom really engaging in restrictive practices? High cost of cross-network calls does not prevent the user from switching to another network. I have seen many cases of people who have 2 or more SIM cards, one for calling (Yu/Orange/Zain - whichever is cheapest) and one for receiving (safcon). Subscribers really do have an option here, truth be told. That they chose to be loyal is not to due to safaricom's restrictive practices. They may not port their numbers, even after MNP has been introduced later in the year.
It is however notable that Safaricom will delay with interconnection agreements, drag it for as long as possible, thereby frustrating the other party. You may not have negotiating power, but then there are laid down rules on interconnections, such that there is no real conflict.
That said, i think CCK has bigger fish to fry, there is the issue sharing infrastructure, e.g. masts, fiber ducts. As to why CCK is not taking a lead on this, I have no idea. No building of more masts, in the country and no laying of fiber ducts in areas already existing. its a simple directive.
Outside my house, due to Thika road construction, I saw KDN guys come and dig a trench, lay their ducts and cover them up and construct manholes. 2 WEEKS later, Access Kenya were on the same path, dug up where KDN dug, and did the same thing. TWO weeks later, Telkom Kenya were at it. Surely, even the watchman commented on how they should work together. The worst part was the trenching when crossing the road, all the 3 companies had to dig up the road at the same spot and fill it up. The road was dug 3 different times, closed for 3 different nights. I was (still am) disgusted.
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Rank: New-farer Joined: 12/3/2009 Posts: 4 Location: kenya
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any1 holding safaricom on their portfolio is holding cow dung
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Rank: Chief Joined: 1/3/2007 Posts: 18,349 Location: Nairobi
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I am not a huge fan of safaricon lakini MJ was right... Why make them suffer for the others' deficiencies...??? That is the question! I think safcon should (before the new regs come into play) lower intra-network to 4/- (current inter-connection cost is 4.42) & cross network to 6/-... It will almost shut everyone else down... even if for a few weeks... LOL... Yet safcom can tell the CCK that Zain offers 3/- (on-net), Telkom/Orange 1/- (on-net)... YU 6/- (off-net)... so safcom is still not the 'cheapest'... Muhahahaha Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,349 Location: Nairobi
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bkismat wrote:@ mlefu safariCon is lucky it is operating in Kenya with maybe non existent anti trust laws. some of its behaviors would have had it hit hard by the concerned authorities in some countries. Microsoft have had to fight tooth and nail to have it remain the monolith it is otherwise the regulators would have broken it into smaller bits by now. Nonsense... Did Safaricom earn its way into Kenyan wallets or was it handed the 'dominance' on a silver platter? The ONLY firm that has a legit right to complain is YU whose license was considerably delayed by CCK/GoK due to corruption among other vested interests. Telkom/Orange was the dominant telecoms player. They blew the lead. Lousy, nay, shitty/crappy service. I gave up my landline after many years of poor or non-service (yet paid a monthly charge). Kencell/Celtel/Zain was the dominant mobile carrier until they became arrogant. merali was only interested in deals which made him money not those that grew Kencell/Celtel/Zain Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,349 Location: Nairobi
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Chaka wrote:May be supernormal profits means 'more than the combined profits' of the other operators ? When your competitors are idiots... Or do not take the chance or have so many new owners (management changes) that you become dominant is NOT your fault... Kencell/Celtel/Zain/Bharti is the laughing stock coz we never know what to call them... Somehow Safaricom is a 'local' name that wananchi can connect to... Telkom/Orange - These french are always complaining! Remember the merali crook had vivendi as the original partner... YU - OK, they may have a legit claim on voice but not on data or money transfer Safaricom makes loads of cash from M-Pesa & Data which ALL the others could have introduced but did not... I am using a 'fast' safcom modem they gave me 'free' (made me buy 4,000 of data!)... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 5/8/2007 Posts: 709
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Basically, i think it's a good move by CCK,
Safaricom might soon find itself in a tricky situation.
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Rank: Chief Joined: 1/3/2007 Posts: 18,349 Location: Nairobi
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mukiha wrote:Two fundamental points are being missed:
1] Telecommunications are not a basic human right! They are neither a matter of life and death. Thus consumers of the service do not need price protection. They can vote with their feet by simply choosing to stay without the service!
2] Safaricom was the THIRD telephone company to enter the Kenyan market [after Telkom and Kencell]. They fought a very serious battle for marketshare and in three years time the took position 1. After that they did not relax and celebrate - no, they continued fighting and now are the undisputed market leader with about double what all the other players have [combined!!].
SCOM did not get to that position as a result of government protection [as is the case with KenGen, for example]. They faught an open battle and won. The losers, especially Telkom and Zain, cannot now wake up and start crying. If they think the battle is too tough, they should just close shop and go home. Isn't that what Castle, Spreme, Barnnets, Stutterfords etc did? AMEN... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Wazua
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Safaricom should sue CCK..period.
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