CCK COMPETITIVENESS REPORT

safaricom declared a monopoly... A STUDY ON COMPETITIVENESS IN THE KENYA COMMUNICATIONS SECTOR COMMISIONED BY THE COMMUNICATIONS COMMISION OF KENYA C-C-K, HAS IDENTIFIED SAFARICOM AS A DOMINANT MARKET PLAYER, WITH MONOPOLISTIC TENDENCIES AND PROPOSED MEASURES AIMED AT LEVELLING THE PLAYING FIELD. THE STUDY FOUND THAT WITH A MARKET SHARE OF SOME 82%, SAFARICOM MAY HAVE USED ITS POSITION TO THE DETRIMENT OF OTHER PLAYERS IN THE MARKET. ACCORDING TO THE STUDY PRESENTED WEDNESDAY AND DONE EXTENSIVELY TO COVER THE COMPETITIVE NATURE OF THE KENYAN MARKET FOUND THAT SAFARICOM, WHICH CURRENTLY AT 82% HAS THE HIGHEST MARKETSHARE, HAD USED ITS MARKET POSITION TO NEGATIVELY AFFECT THE WELL BEING OF OTHER PLYERS, UTILIZING TACTICS SUCH AS CUSTOMER LOCK AND CLUBING THROUGH PRICING….. THE REPORT ALSO PROPOSES REMEDIES FOR THE SITUATION, INCLUDIONG NUMBER PORTABILITY AND PRICE LEGISLATION….. OBSERVERS SAY THE REPORT MAY HAVE INFORMED THE RECENT MOVE TO SLASH THE INTERCONNECT RATE, THE FEE LEVIED BY OPERATORS ON OTHERS FOR CALLS TO TERMINATE ON THEIR NETWORKS…… THE MOVE TO REDUCE THE INTERCONNET RATE HAS RESULTED IN A FLURRY OF PRICE CUTS THAT HAVE CAUSED A PRICE WAR….. THE LATEST MOVE IN THIS FINANCIAL CHESS GAME BEING BY TELKOM ORANGE, WHICH TODAY SLASHED MOBILE TARRIFFS….. TELKOM C-E-O MICKAEL GHOSSEIN TERMS THE NEW TARRIFFS ACROSS MUCH OF THE MARKET UNSUSTAINABLE, A CLAIM THAT FLIES IN THE FACE OF THE REGULATORS COMMENTS THAT THE NEW LOWER TARRIFFS WOULD BE SUSTENABLE FOR THE MARKET… ‘ I SAID IT IS DEAD, U RECORD AND THEN WE CHECK IN SIX MONTHS… THIS IS NOT SUSTAINABLE…..,’ SAID MICKAEL GHOSSEIN C-E-O, TELKOM KENYA. TELKOM HAS SET THEIR TARRIFF AT FOUR SHILLINGS OFF NET AND 2 SHILLINGS ON NET….. MARKET OPERATORS HAVE BEEN FORCE TO FOLLOW SUIT AFTER ZAIN, RECENTLY ACQUIRED BY BHARTIA AIRTEL, SLAHED CALL TARRIFFS TO A MARGINAL FLAT RATE OF THREE SHILLINGS. THIS IT APPEARS IS THE REGULATOR’S DEFINITION OF COMPETITION….