CCK denies approving price fixing

GOVERNMENT

|
Image: Francis Wangusi. By BiztechAfrica
Francis Wangusi

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.” 



Share the News

Get Daily Newsletter

comments powered by Disqus

MORE GOVERNMENT NEWS

Benin to increase ICT expenditure in 2015

Ranked 23rd in Africa and 149th globally by the 2014 ITU ICT Index, Benin wants to repair its image of being a weak ICT spender carrying one of the continent’s less developed ICT sectors. Read More

Senegal govt, AfDB to build US$120 million digital park

The Senegalese government and the African Development Bank (AfDB) will join forces to put aside about US$20 million and US$100 million, respectively, to build a mega-digital park in the city of Diamniadio. Read More

Govt confirms NATCOM’s $252m Nitel/Mtel purchase

The Federal Government of Nigeria has confirmed the sale of former state-run but now moribund telco, the Nigerian Telecommunication (Nitel) and its mobile arm, Mtel to NATCOM Consortium for $252 million. Read More

Angola takes science and technology roadshow to schools

Angola’s Minister of Science and Technology has hailed a programme carried out this year to increase school learners’ understanding of science, technology and innovation. Read More

Senegal to issue smart ID, voter’s cards

The government of Senegal is planning to issue new smart ID documents and voter’s cards, a project it said will strengthen the administration and fight identity theft. Read More

MTN, Orange, Cameroon govt launch Mobile Tax service

The Cameroonian government has launched a new tax service called Mobile Tax, in association with mobile operators MTN and Orange. Read More

BTCL IPO date reset again

The embattled BTCL IPO launch date has not seen the last of its changes yet.  Read More

Botswana tops Africa Prosperity Report

Botswana tops the 2014 Africa Prosperity Report, as the continent enjoys unprecedented economic upturn, but Africa faces new challenges in gender gap and personal freedom. Read More

Mali Digital Plan 2020 to reorganise economy

The coordinator of Mali’s proposed ICT development strategy believes digital technologies have the potential to revolutionise people’s lifestyle and working relationships, boost culture and improve education, among others. Read More

Nigeria lures broadband investors with incentives

Nigeria has highlighted opportunities and incentives for would-be investors, on the sidelines of ITU Telecom World. Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoice

FEATURED STORY

PWC: Optimism abounds but a bumpy journey ahead for somePWC: Optimism abounds but a bumpy journey ahead for some

PwC’s ‘Capital Projects & infrastructure in East Africa, Southern Africa and West Africa,’ report says infrastructure spend in the region is projected to reach $180bn per annum by 2025.

IN DEPTH

Africa lags on digital migration Africa lags on digital migration

Only three African countries have so far completed the digital migration process, and serious issues are hampering the migration in other nations.