Wazua
»
Investor
»
Economy
»
Safaricom should sue CCK..period.
Rank: Elder Joined: 10/4/2006 Posts: 13,821 Location: Nairobi
|
@all, one of the anti-competitive business practices employed by safCON was the move to threaten M-PESA agents who had registered as ZAP agents when ZAP came on board. All Mushrooms are edible! Some Mushroom are only edible ONCE!
|
|
|
Rank: Elder Joined: 2/11/2007 Posts: 1,680 Location: nairobi
|
Quote:In my view CCK has provided a framework. CCK has many options such as lower taxes, lower interconnect, asymmetrical interconnect etc. If in its application, Safaricom is unfairly victimised, they must sue! thats wazua... the inter-connectivity cost @4.50.. why the hell charge 6 bob across networks Mathukuma na kambichi Quote:@all, one of the anti-competitive business practices employed by safCON was the move to threaten M-PESA agents who had registered as ZAP agents when ZAP came on board. ..like coop opening equity`s stand inside their branches.
|
|
|
Rank: Member Joined: 7/31/2007 Posts: 341
|
Djinn wrote:@mlefu et al siding with Safaricom (and please excuse me for not reading through the many posts) but CCK is right. I suspect some (investors in SCOM sahres) are coming from the point of view that the operator will be hard hit thus affecting their investments.
However, CCK (and the smaller operators) have a valid point. Its no more different than the anti-trust suits leveled against against Microsoft in some countries.
1 - Safaricom owing to disproportionate interconnection tariffs, knowing that it holds 80% market share, LOCKS in its subscribers. lets forget about the issue of wanting to retain your same number - look beyond that. Look at your address book - nine out of 10 numbers are Safaricom numbers - so you chose to stay because should you move - it will cost more to call nine out of 10 Safaricom numbers.
2 - Cross subsidies - given that it has 80% of the voice market, it can use that as an advantage to offer extremely low data rates, making it uncompetitive (and sometimes financial impossible) for other operators to offer even the same prices.
3 - This part is not really covered in this new piece of legislation but has to do with consumer protection (and the reason we need mobile number portability) - quality of service vis a vis prices charged. SCOM has raked in millions by offering mediocre service - no more different than the lucrative matatu sector that makes billions yet thrives most of the time outside the confines of exiting laws (including the constitution when it comes to your rights as a consumer, a human being, etc).
I'd like to ask the SCOM users a few questions
1 - Does Super Ongea really work? Whats the lowest rate you have enjoyed during your normal usage hours (I do not mean at 3am on Monday)
2 - For prepaid - can you dial 100 and get though? SCOM said they had opened up a state of the art call centre - did they really?
3 - Quality of service (and this has to do both with Super Ongea Tariff and cross subsidies) - the see-saw tariff is meant to let users enjoy a lower tariff when the network is not so congested - as it were, your answer to #1 itself should tell you the network is constantly congested therefore, quality of service remains low.
My two zlot
@djinn, with all the negatives going SCOM's way as you have enumerated, wouldn't it be in the interest of the smaller players to let the status quo remain. After all SCOM is very expensive, customer care never works, Supa Ongea is a big con and the network is ever congested. By your own logic SCOM should be protected from losing customers to its competitors who are offering superior services at dirt cheap prices, no?
|
|
|
Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
|
masukuma wrote:@all, one of the anti-competitive business practices employed by safCON was the move to threaten M-PESA agents who had registered as ZAP agents when ZAP came on board. That's not true. That agent entered into an exclusivity agreement with SCOM. The agent had the right and option to say no and take Zap instead.
BBI will solve it :)
|
|
|
Rank: Veteran Joined: 5/18/2008 Posts: 796
|
@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..
On your last three points, it's your responsibility to move if you are not getting quality or are being overcharged or whatever... CCK's responsibility ended when they granted licenses to other players (that is when they created options, everything else should be left to the market forces - unless of course the players form price-fixing cartels) ... Its like those people who enter mats that have loud music yet there was the option to take a quiet one then demand that the government do something.
|
|
|
Rank: Elder Joined: 12/6/2008 Posts: 3,548
|
Typical Kenyans who feel angry when they see someone prosper, they rush to pull them down. Safaricom is being punished for it transparency, KPLC is certainly in a position to report two times the profit safaricom reports and is a monopoly, but by the time all KPLC employees and government leeches have had their share it reports quarter of what safcom reports and we cheer. So the lesson to MJ; report smaller profits, steal where you can, repatriate profits to vodafone where you can, employ your relatives to do the same, cut deals with guys who supply you generators, vehicles, building space then report two billion profit (and a loss sometimes) and Kenyans will leave you alone. They are people who have a constant kiwaru in their throats, mawivuuu mob sana! They will tell you "enda pole pole bwana" A New Kenya
|
|
|
Rank: Veteran Joined: 5/18/2008 Posts: 796
|
|
|
|
Rank: Elder Joined: 10/4/2006 Posts: 13,821 Location: Nairobi
|
@mlefu, who is makabichi? @2012, at what point did the exclusivity come into play? just before ZAP launched? the Agents had rushed in droves to register until safCON cracked its whip. M-PESA agents are not safCON employees or distributors they are just retail dispensers of that certain service, they set-up their own shop, pay their own rent. they are the exact replica of mobile-credit sellers but now on M-PESA. Its like forcing newspaper vendors to only sell your paper and complaining when you are called to account for that. Very anti-competitive practices that must be clumped down. All Mushrooms are edible! Some Mushroom are only edible ONCE!
|
|
|
Rank: Member Joined: 10/26/2008 Posts: 380
|
masukuma wrote:@mlefu, who is makabichi?
@2012, at what point did the exclusivity come into play? just before ZAP launched? the Agents had rushed in droves to register until safCON cracked its whip. M-PESA agents are not safCON employees or distributors they are just retail dispensers of that certain service, they set-up their own shop, pay their own rent. they are the exact replica of credit-card dealers but now on M-PESA.
Its like forcing newspaper vendors to only sell your paper and complaining when you are called to account for that. Very anti-competitive practices that must be clumped down. Similar to having a shop and being told you can only sell supaLoaf, and if you sell Broadways/any other, supaloaf will withdraw their mkate. Simply because Safcon has a better product, they flex their muscles. Monopolistic approaches. That said, the agents did sign the "exclusivity", so legally they have no recourse. But no operator should demand "exclusivity" unless they will also give "exclusive" access to the market, say in a radius of 1km, there is no other MPESA agency.
|
|
|
Rank: Member Joined: 11/17/2009 Posts: 99
|
masukuma wrote:@mlefu, who is makabichi?
@2012, at what point did the exclusivity come into play? just before ZAP launched? the Agents had rushed in droves to register until safCON cracked its whip. M-PESA agents are not safCON employees or distributors they are just retail dispensers of that certain service, they set-up their own shop, pay their own rent. they are the exact replica of credit-card dealers but now on M-PESA.
Its like forcing newspaper vendors to only sell your paper and complaining when you are called to account for that. Very anti-competitive practices that must be clumped down. What prevents the guy next door from opening a Zap outlet. Persuade them into the deal. Why insist on using Mpesa 'infrasture'. Safaricom originated the idea, they wooed/convinced agents at a cost, into the business then some Johny come lately wants to reap where they didnt sow! Let them gather courage enough to lay their own ground. Vyaelea vimeundwa, tena mali ya mwenzio husije ukailaia mlango wazi!! First they ignore you, then they laugh at you, then they fight you, then you win!
|
|
|
Rank: Member Joined: 5/13/2008 Posts: 558
|
Peculiar Habbits is what kenyans have and MJ knows it. CCK is just being insincere and wants to cripple safcom so that some few individuals "without naming names' can try and recoup their losses.
1. Orange was at it saying that the govt sold them empty coffers. And they wanted a refund of what they paid "else". (Few kenyans know the prefix of orange let alone their charges). Can anyone un-earth the local shareholders of orange i.e France Telkom Kenya??.
2. The prennial name changers Zain are re-known for their good service and better network. Why are they not attracting the customers??. Now some Bharti is going to be in our midst so is being reported.
3. I know very little about yu, only that they have the cheapest rates. But the only cheap thing that kenyans are generally intrested in is alchohol.
WONDER WHY THE SAME GOVT PROTECTS EABL MONOPOLY USING THE SAMILAR TACTICS?.
Some senior people are seriously roasted by investing in this so called competitors. They are simply using the regulatory mechanism to try and salvage them. Otherwise if they close shop, they'll be in serious s*it.
|
|
|
Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
|
masukuma wrote:@mlefu, who is makabichi?
M-PESA agents are not safCON employees or distributors they are just retail dispensers of that certain service, they set-up their own shop, pay their own rent. they are the exact replica of mobile-credit sellers but now on M-PESA. MPESA is a service. You cannot the same as selling scratch cards. It is a major part of SCOM. I see nothing wrong with SCOM deciding how they wand this service dispensed after all they came up with it to add value to their business. Retailers have a right to choose too. By the way where are zap agents? Why is it that the only way is for them to tag on already established Mpesa agents?
BBI will solve it :)
|
|
|
Rank: Elder Joined: 10/4/2006 Posts: 13,821 Location: Nairobi
|
@Mkimwa, those are the monopolistic tendencies that are anti-competitive. @kingauwi, they wooed and convinced agents at a cost and if an agent decides to do some side business you stop him? like it or not those tactics are anti-competitive and MUST BE CLAMPED DOWN! the process begins regardless of all the vitriolic criticism you may have. the REFA amepiga kipenge...he saw a FOUL committed. All Mushrooms are edible! Some Mushroom are only edible ONCE!
|
|
|
Rank: Member Joined: 10/11/2007 Posts: 213
|
chris79 wrote:
@djinn, with all the negatives going SCOM's way as you have enumerated, wouldn't it be in the interest of the smaller players to let the status quo remain. After all SCOM is very expensive, customer care never works, Supa Ongea is a big con and the network is ever congested. By your own logic SCOM should be protected from losing customers to its competitors who are offering superior services at dirt cheap prices, no?
Well said! I have been using orange unlimited and its so sloooow compared to safcom. i get max 25KBps while on safcom usedta reach mpaka 300KBps. That said safcom data is expensive. If the hullabaloo results in lowering of voice and dats charges by safcom then I win...but i dont see how yu/orange/bharti will
|
|
|
Rank: Member Joined: 6/7/2007 Posts: 263 Location: humu humu
|
we will make noise here but the fact remains CHUMA CHA safariCON KI MOTONI!!!!! Lets see how safCON plans to stop cck... @waria, 300KBps (kiloBYTES per second=2.34Mbps..megabits per sec)? Please go to http://www.speedtest.net/ at 3am in the morning (low traffic at 3am) and post results here for doubting thomasses like me
|
|
|
Rank: Elder Joined: 9/15/2006 Posts: 3,905
|
Wooooaaah, I'm missing on the action! In 1973, Peter Drucker made a profound statement:
Because the purpose of business is to create a customer, the business enterprise has two—and only two—basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs.
Notice there's no mention of price - Safaricom get's that; the others don't.
On another note, industry practice normally requires key partners to be exclusive. Key partners need to be developed, trained, financed etc. So you will notice Apple partners sell only Apple, Total partners sell only oil from Total, Nokia partners sell only Nokia, and Coke bottlers deal only with Coke, and Celltel partners had to paint up all their shops and only deal with ... (you guessed it).
But you can be a free agent, deal with both as a sub dealer etc.
On another note, wouldn't government time be better spent dealing with Oil cartels, EABL monopoly, Kengen and KPLC government mandated monopolies that actually harm the consumer?
|
|
|
Rank: Elder Joined: 9/15/2006 Posts: 3,905
|
So just seen MJ on Citizen Tv and he was very passionate and convincing. It seems his positions is:
-no problem with the general framework
-he agrees Safaricom is dominant but his position is they haven't abused it
-need abuse of dominance to be defined clearly
-absolutely against clause requiring 90 days tarrif change approval/notice for dominant player; controls Safaricom tarrifs while giving competitors prior notice
So I didn't see his last point in @mukiha download; maybe we don't have the final version...
|
|
|
Rank: Member Joined: 6/7/2007 Posts: 263 Location: humu humu
|
"absolutely against clause requiring 90 days tarrif change approval/notice for dominant player"....this applies to all operators. Also hoping citizen tv brings
-Yu CEO Srinivasa Iyengar
-Zain Kenya Managing Director Rene Meza
-orange Kenya CEO, Mr Mickael Ghossein
|
|
|
Rank: Member Joined: 7/31/2007 Posts: 341
|
@jaguar, by definition safcom is the dominant player, so that rule is aimed directly at it. We don't have 4 dominant players...
|
|
|
Rank: Member Joined: 6/7/2007 Posts: 263 Location: humu humu
|
@chris79, wacha porojo... Kenya_Information_and_Communication_Tarrif_Regulations_2010..... "7. (1) A licensee who wishes to review the tariffs for a regulated service shall file an application for approval of the review with the Commission in the prescribed manner, at least ninety days before the proposed review is intended to come into effect"download all six documents from http://www.cck.go.ke/reg.../sector_regulations.html
|
|
|
Wazua
»
Investor
»
Economy
»
Safaricom should sue CCK..period.
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|