Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

4G/5G

Safaricom CEO Slams Kenya Market Study

Article Image
Safaricom CEO Bob Collymore has slammed a report into Kenya's telecoms market, saying that its recommendations would punish its customers and stifle innovation.

In a presentation to the Kenyan parliament's committee on ICT, which is inquiring into Legislative And Regulatory Gaps Affecting Competition In Kenya's Telecommunications Sector, Collymore criticized a report drawn up for the Communications Authority of Kenya by industry consultancy Analysys Mason.

The Analysys Mason Report on Telecommunication Competition Market Study, which identifies Safaricom as a dominant operator in certain market segments, suggests a number of measures that the consultancy believes would improve competition in a market where Safaricom, with about 30 million customers, holds a commanding market share of around 70%.

The suggested measures include curbs on tailored loyalty schemes and promotions, the prohibition of on-net discounts, a requirement to enable national roaming and more. (See Safaricom Safe From the Splits, but Rural Network Sharing Likely.)

Collymore, not surprisingly, is not impressed by such suggestions, saying that the measures, if implemented, would "punish Safaricom's customers, stifle innovation, discourage investment and reward competitors who do not invest in their networks as they should."

Collymore added: "In essence, this report seeks to introduce retail price controls on Safaricom's services, effectively raising the applicable rates of Safaricom's services, making the services more expensive to the customers, and forcing them to migrate to competitors' services based on cost considerations. This is essentially creating an artificial competitive landscape that rewards Safaricom's competitors and disadvantages Safaricom's customers."

Safaricom CEO Bob Collymore (picture taken in 2017).
Safaricom CEO Bob Collymore (picture taken in 2017).

Safaricom's competitors – namely, Telkom Kenya and Airtel Kenya – will, naturally, beg to differ.

For more on what Collymore, who is now back at work full time after a lengthy medical leave (see his tweet below), had to say, see this transcript of his presentation on Business Daily.

— The staff, Connecting Africa

Innovation hub

Story

Hot startup of the month: Pan-African fintech KamaPay

This month's hot startup is pan-African fintech KamaPay, which helps individuals and businesses make cross-border payments on the continent.

Story

Afretec awards $3.3M in grants to African research teams

The African Engineering and Technology Network (Afretec) has awarded grants worth $300,000 each to 11 university research teams across Africa to advance digital technologies.

More Innovation hub

Latest video

More videos

Sponsored video

More videos

Industry announcements

More Industry announcements

Flash poll

All polls

Africa Tech Perspectives

Story

Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

Story

Challenges and opportunities for women's tech careers

A new survey reveals that COVID-19, the cost-of-living crisis, skills shortages and a lack of mentorship have negatively affected women's career development over the past two years.

Story

Survey: Opportunities for Women in Tech

Take our new survey for women across Asia, Europe and Africa looking at the biggest challenges and opportunities for women-led enterprises and trends in tech careers for women.

More AfricaCom perspectives

Upcoming events

London Tech Week
June 13-16, 2023
Queen Elizabeth II Centre, Broad Sanctuary, London SW1P 3EE
Cybertech Africa 2023
August 1-2, 2023
Kigali Convention Center, Kigali, Rwanda
Africa Tech Festival, Home of AfricaCom and AfricaTech
November 13-16, 2023
CTICC, Cape Town
More Upcoming events

Guest Perspectives

Story

Omdia View: February 2023

By Omdia Analysts

In February 2023 key events in the Middle East and Africa included a major Internet project for Africa's underserved by Liquid Intelligent Technologies and Microsoft as well as a 5G launch in Tanzania – that and more in this month's Omdia View.

Story

Omdia View: July 2022

By Omdia Analysts

Kenya and Zambia move towards 5G with new spectrum allocations while Tunisie Telecom plans to shut down its 3G network - that and more in this month's Omdia View.

More Guest Perspectives

Partner perspectives

All Partner Perspectives

Like us on Facebook

Newsletter Sign Up


Sign Up