CCK denies approving price fixing
GOVERNMENT| April 25, 2012, 4:05 p.m.
Kenya’s regulator has set the record straight on reports that it gave tacit approval to mobile price fixing.
In a statement issued by Francis W. Wangusi, Ag. Director-General of the Communications Commission of Kenya (CCK), the organisation said no official authorisation had been sought or granted for mobile operators to fix prices for cross-network calls.
The CCK said: “While the CCK recently held discussions with some licensees regarding the wholesale interconnection rate and the attendant glide path, no request has been officially made regarding the intention to fix the retail mobile voice tariff either by those players on any other licensee. As such, no such approval has been granted.”
“Retail price fixing as practiced in collusive oligopoly markets is an anti-competitive business practice that is contrary to the prevailing competition law and policy. Retail price fixing in the mobile voice market in Kenya would, therefore, be in breach of the law; and as such no approval can be granted.”
The statement said CCK considered the retail mobile voice market as sufficiently competitive, thus making it unnecessary to impose any stringent retail price regulatory obligations on the licensed mobile operators. However, even for such competitive market segments where the Commission does not impose retail price setting obligations, the law (i.e. clause 4(3) of the Kenya Information and Communications (Tariff) Regulations, 2010,) prohibits licensees from applying tariffs that distort competition, exploit consumers and, possibly even prevent market entry.
“Therefore, all mobile operators set their retail prices independently guided primarily by their costs of providing a particular service and are only obligated to file with the Commission their retail rates as provided for in their respective licences.”
The statement concluded that the Commission is currently carrying out a study to evaluate the impact of competition on the mobile voice market on the entire economy. “We would like to clarify that the study, which is being undertaken by the Kenya Institute of Public Policy Research and Analysis (KIPPRA), is in not in any way meant to determine interconnection rates for the mobile telecoms market.”
MORE GOVERNMENT NEWS
NCA cushions consumers from future interconnection hikesThe Ghana National Communication Authority (NCA) has revealed that in order to safeguard consumers from interconnection price hikes, it has enforced that operators maintain their current rates from now until January 2018 in spite of operations of the Interconnect Clearing House (ICH) in Ghana. Read More
Microsoft, Johannesburg to train a million on digital literacyJohannesburg, South Africa, has become the first African city to close a workforce development deal of to train a million disadvantaged residents on digital literacy skills that include Microsoft Office. Read More
NITDA’s Taraba Smart City project receives global recognitionThe Jalingo City’s Smart IDP Tracking and Monitoring project, designed and implemented under the NITDA Nigeria Smart City Initiative, has won global recognition. Read More
NCA Chairman calls for strong ties between Africa’s telecom regulatorsThe Chairman of Ghana’s National Communications Authority, Eugene Baffoe Bonnie, has emphasised the need for regulatory bodies in the African telecommunications industry to close ranks to ensure a stronger collaborations. Read More
Cybercrooks steal N127b annually in Nigeria, says ComTech ministerNigeria’s ComTech Minister, Barr Adebayo Shittu, has lamented that Nigeria loses N127 billion annually to cyber thieves, warning that if it is not addressed, it posed a great deal of threat to the national economy. Read More
Nigeria's ComTech minister restates need for ICT UniversityNigeria’s Minister of Communications, Adebayo Shittu, has restated the need for the establishment of an ICT University in Nigeria, the first of its kind in Africa. Read More
Nigeria tax chief to go after telcos, othersThe Executive Chairman of Nigeria’s Federal Inland Revenue Service (FIRS), Mr Tunde Fowler, has said the focus of the service this quarter, was to recoup taxes owed by telecoms firms, airlines, and deposit money banks (DMBs). Read More
NCA to mark 20th anniversary with Symposium on RegulationsGhana’s National Communications Authority is set to hold a two day symposium in Accra as part of events to mark its 20th anniversary as a regulator. Read More
NCC pays N1.4 tr into Federation Account, says DambattaThe Nigerian Communications Commission (NCC) has paid over N1.4 trillion to the Federation Account, the CEO of the regulatory body, Prof Garba Dambatta has said. Read More
FEATURED STORYFirst-ever Africa Barclays Accelerator programme concludes
Ten fintech companies have concluded the first-ever Barclays Accelerator, powered by Techstars in Africa.
BEST READ NEWS
IN DEPTHEthical Hacking students can’t get a heck of a job
Botswana ethical hacking students report that they are failing to break into the local job market.
COMPANY NEWSThe Tech Revolution: Sage Sets out the Vision for African Businesses
Sage, a market leader in cloud accounting software used its global Sage Summit 2016, held this week in Chicago, to outline its strong commitment to future technologies, ...