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
NCC didn’t stop APC’s fund raising platform, says JuwahThe Nigerian Communications Commission (NCC) says it did not order GSM operators to shut platforms used by political parties to raise funds. Read More
Unlocking AfricaAfrica’s visa requirements are stunting its development, says McKinsey & Company. Read More
Togo’s new tax on incoming international calls angers consumersA new tax on incoming international calls imposed by the government of Togo has angered consumers and generated heated debate. Read More
NCC EVC says agenda accomplishedThe Executive Vice Chairman of Nigerian Communications Commission (NCC) Dr Eugene Juwah, says he has attended to all the items he listed as his six-point agenda when he was appointed CEO. Read More
Gabon to deliver e-visas, launches immigration websitePeople wishing to travel to the Central African nation of Gabon can now apply for visas online. Read More
Break-ins threaten Mascom Kitsong centre projectAs Mascom Wireless embarks on its fourth year of bringing ICT to the marginalised people of Botswana, Mascom says the greatest impediment to their efforts are the break-ins that are rampant at the Kitsong establishments. Read More
DRC govt cuts internet, SMS to quell deadly protestsAfter a week of deadly protests in the Democratic Republic of Congo (DRC) that left at least 42 people dead, people in this troubled Central African nation are still scrambling to connect to the internet and send SMSes. Read More
Computerised driver testing grounds: another first for BotswanaBotswana will see another first this week in the form of computerised driver testing, which will be launched in Gaborone on Friday 23 January. Read More
Digital policing: Lagos builds 100 ICT centres for policeLagos State Governor Mr Babatunde Raji Fashola (SAN) has begun handing over 100 Information Technology Centres to police stations in the state, with two stations in the Ogudu Police Area Command. Read More
FEATURED STORYUCC launches 2015 ACIA awards
Uganda has launched the fifth Annual Communications and Innovation Awards, which celebrate and foster ICT innovation and achievement.
BEST READ NEWS
IN DEPTHKenya’s digital TV battle hots up
Kenya’s journey to Digital TV broadcasting took a new turn this week, when the Communication Authority of Kenya (CAK) accused three local media firms of intent to disrupt the process.
COMPANY NEWSVMware reports fourth quarter and full year 2014 results
VMware, the global leader in virtualisation and cloud infrastructure, has announced financial results for the fourth quarter and full year of 2014.MTN to empower African businesses with AWS Direct Connect
MTN Group today announced it would be the first African company to offer Amazon Web Services (AWS) Direct Connect to business customers across multiple countries on the ...“All Systems GO!” for the DStv Eutelsat Star Awards in Zambia
It’s “All Systems GO!” for the winners of the fourth edition of the DStv Eutelsat Star Awards to be announced at the awards ceremony in Lusaka, Zambia ...