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During the launch of Safaricom’s new data bundles, Bob Collymore used that platform to respond to Government and its competitors who are looking to cut down Safaricom’s dominance in the telecommunication industry.
Here is what he had to say;
Allow me to talk about a matter that is of importance not only to Safaricom as a business but to our shareholders and indeed the Kenyan economy at large.
We are all familiar with the proposed Amendments to the Tariffs Regulations and Fair Competition regulations that are headed for debate in Parliament.
Safaricom is a leading player in some segments of the telecommunications market. This is a position that has been earned through prudent management, deep customer insights and massiveinvestment in infrastructure.
In addition, we have continuously invested in our customers; we roll out innovative products and services that aim to transform their lives.
The new regulations intend to makeany player who has significant market share dominant, and proposes to automatically penalize them without catering for the an ‘abuse of dominance’ test to decide if the player is abusing their dominance or not.
This goes against international best practice on the Fair Competition and Equality of Treatment and the Tariffs regulations and sets the stage for worrying penalties at the behest of a competitor who is not willing to innovate.
If the proposals are adopted, it will result in the erosion of the gains in the Kenyan ICT sector and encourage inefficiencies and lack of investment.
It will unfairly skew the market in favor of an operator that appears reluctant to invest in this country and who has been slow in responding to customer needs, thereby distorting the free market and discounting the value of market competition.
Further, the proposed provision empowering the Authority to prescribe, of its own motion, the wholesale and retail prices to be charged in respect of Regulated Services goes against the prevailing ICT policy which liberalized the ICT sector and provided for removal of all forms of retail price control in markets that are competitive.
What do you think about Bob Collymore’s response?
