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
CBN extends BVN enrolmentThe Central Bank of Nigeria has extended the timeline for the enrolment for the national Bank Verification Number (BVN). Read More
NITA gets a new bossGhana’s President John Dramani Mahama has appointed a 35 year old computer scientist, George Atta-Boateng, as Acting Director General of the National Information and Technology Agency. Read More
Nigeria BVN deadline loomsBank customers in Nigeria are reported to be rushing to register for their biometric banking ID as the deadline for the BVNs looms. Read More
Young entrepreneurs in Rwanda told to be more creativeThe latest YouthKonnekt Hangout hosted by Rwanda’s Ministry of Youth and ICT (MYICT) in partnership with UNDP, ADMA, Tigo, and HeHe Labs, has urged young entrepreneurs to be innovative. Read More
Jumia gets visit from Côte d’Ivoire MinisterCôte d’Ivoire’s Minister of Post and Information and Communication Technology, Bruno Kone, has paid a visit to the offices of e-commerce firm Jumia. Read More
African heads of state to participate in TGAISFive heads of state have already confirmed their participation in the 2015 Global African Investment Summit. Read More
Francis Wangusi reappointed CAK DGThe Board of the Communications Authority of Kenya has announced the appointment of Francis Wangusi as the Director General for a term of four years, effective 22 August 2015. Read More
NIN mandatory from September 1, says NIMCThe National Identity Management Commission (NIMC) has put 1st September, 2015 as the date from which all transactions involving the identification of individuals must be done with the National Identification Number (NIN). Read More
Minister encourages young innovatorsRwanda’s Minister of Youth and ICT, Jean Philbert Nsengimana, has encouraged young innovators in Rwanda to be driven by passion. Read More
FEATURED STORYIHS plans to inject fresh $500m to grow capacity
Mohammed Darwish, managing director of IHS Towers, says the firm will soon inject another $500million into the business after raising some $2.5billion to finance expansion drives. Darwish spoke with biztecafrica.com in Lagos.
BEST READ NEWS
IN DEPTHAs curtain falls on MDGs, what next?
Dr. Bjorn Lomborg, president of the Copenhagen Consensus Centre, speaks to Biztechafrica about setting smart targets.
COMPANY NEWSMTN Business expands partnership with Samsung to offer enterprise customers increased security
Samsung Electronics South Africa has announced that MTN Business has been appointed as a reseller of Samsung’s KNOX licenses to its customers.