Telcos market dominance laws set to delay in CA consultants search hitch

Corporate News

Communications Authority director-general Francis Wangusi. PHOTO | FILE 

By OKUTTAH MARK, mokuttah@ke.nationmedia.com

Posted  Monday, April 18   2016 at  19:44

In Summary

• “The first tender to determine the issue of dominance was non-responsive and fresh bids will be sent out to hire an international consultant,” said Mr Wangusi.
• Hiring of the consultancy to conduct the market analysis has been necessitated by what Mr Wangusi said is lack of mechanisms that spell out what constitutes abuse of market dominance.

The enactment of laws to check abuse of market dominance in the telecommunications sector could take longer than anticipated after the Communications Authority of Kenya (CA) said that it is re-advertising a tender to hire consultants for the job.

Francis Wangusi, the CA director general Monday said an earlier call for international consultants made in September last year only attracted one firm, making the process non-competitive.

The consultant will, among other things, identify the relevant markets (sub-markets) within the telecommunication sub-sector, the number of players and their respective market shares.

The delay in contracting the consultant means that the self-imposed deadline by CA to ensure that the dominance laws are in place by March 2017 will be pushed back.

“The first tender to determine the issue of dominance was non-responsive and fresh bids will be sent out to hire an international consultant,” said Mr Wangusi.

READ: CA loses power to regulate dominant telcos

Also read: CA says Airtel and Safaricom are on level ground

A team has been formed to handle a new ICT framework under the new policy that will also aid in defining dominance and other issues in the sector, he added.

The consultant’s brief also includes review of policy, legal and regulatory frameworks on competition, recommending appropriate changes to enhance effectiveness as well as offer remedy.

The CA says the consultant’s report is expected to offer insights into the market status and facilitate decision-making in prescribing proportionate and appropriate regulatory actions.

Specific stimulus

Independent research will assist the Authority in identifying and developing the key market interventions necessary to facilitate continued growth and economic efficiency in the sector, while promoting sustainable investments, access and affordability, the tender documents say.

The consultant is also required to propose the best ways by which hindrances to growth can be minimised or eliminated.

It is also expected to come up with specific stimulus that can be injected in the Internet/data sub-segment to ensure effective competition, accessibility, affordability and growth.

Hiring of the consultancy to conduct the market analysis has been necessitated by what Mr Wangusi sai