In the direction of the tip of final month, the Communications Authority of Kenya (CA) engaged the general public in announcing the findings of Analysys Mason’s report on the aggressive panorama within the telecoms business. Analysys Mason, an unbiased worldwide advisor was tasked to substantiate claims of anti-competitive behaviours and market dominance within the telecoms sectors that has been alleged to curtail the expansion of competing gamers.
We obtained a maintain of an abridged model of the Telecommunication competitors market research in Kenya report and a fast perusal by means of it paints an image that clearly means struggle for Kenya’s largest Telco, Safaricom. Many of the suggestions within the report are focused at crippling Safaricom’s obvious dominance within the sector and as a lot as I’m for a levelled enjoying area, I believe that a few of the suggestions are unfair to mom inexperienced, extra so, the “pressured” sharing of towers and nationwide roaming.
Sharing of Towers and Nationwide Roaming
Based on the report, Safaricom has such a excessive community protection within the nation that the opposite telcos, particularly, Airtel and Telkom can’t match this protection with out incurring some vital losses. “With their present market shares and Common Income Per Consumer (ARPU), Airtel and Telkom can’t profitably prolong their present 2G or 3G geographic protection and are prone to face comparable monetary difficulties in rolling out 4G infrastructure within the extra rural elements of the nation,” reads the report.
The report says that the dearth of ubiquitous protection prevents Airtel and Telkom from buying subscribers in non-covered areas but additionally has an influence in lined areas as some customers will subscribe to Safaricom to maximise the possibility of being lined no matter their location.
To counter this, Analysys Mason recommends that, “Safaricom ought to be required to supply different Tier 1 cell operators with entry to its websites in designated counties (Isiolo, Garissa, Mandera, Marsabit, Samburu, Turkana and Wajir) the place there’s a giant disparity within the variety of websites deployed by Safaricom and the quantity deployed by the opposite two Tier 1 cell operators.”
The report goes to additional recommend that Safaricom can’t refuse to share a website with out correct purpose. “Within the occasion that Safaricom believes that there are technical the explanation why sharing just isn’t possible at a selected website (e.g. because of most wind loading on the tower), the corporate might request an exemption from the CA, stating the rationale and offering supporting calculations as applicable. The entry seeker ought to have the appropriate to look at the calculations and fee its personal website inspection to validate them, if obligatory.”
Apparently, this treatment goals to permit Airtel and Telkom to match Safaricom’s protection within the quick time period, and thus have the chance to achieve market share and promote infrastructure-based competitors.
Nice Community Protection is Safaricom’s Aggressive Benefit
A fast analysis on my half reveals that Safaricom has spent a median of 100 billion Shillings previously 4 years to enhance its community infrastructure. This quantity was not given as a grant however got here from the corporate’s account. Although Safaricom stands to achieve further income from leasing out their websites to different telcos, I consider that they shouldn’t be pressured to take action.
They made an funding to make sure that they provide the most effective community protection within the nation, in addition to, nice community protection is Safaricom’s aggressive benefit, taking this away won’t solely have an effect on the corporate’s income however may even be anti-competitive, if I’ll say.
The reality is, Safaricom just isn’t the most affordable community in Kenya however that’s for an excellent purpose, reliability. The opposite Tier 1 telcos have used their decrease costs as their aggressive benefit, evidenced by their promotional materials that retains reminding prospects of their low cost costs. Regardless of Safaricom’s increased costs, their community protection stays unmatched, identical to Faiba 4G’s information costs, Telkom’s freedom bundles and Airtel’s unliminet stay unmatched in their very own perspective.
Safaricom has not at all times been on the helm of the telecoms market. In case you forgot, the corporate was born out of Telkom Kenya and in some unspecified time in the future, Kencell (now Airtel), was on the peak. Nevertheless, a sequence of fine choices and correct funding noticed Safaricom take the crown as Kenya’s greatest telco and one of the worthwhile firms within the nation and I don’t assume they need to be punished for that.
— to techweez.com