Safaricom faults prices regulation

Safaricom chief executive Bob Collymore. FILE PHOTO | NMG 

By JAMES NGUNJIRI

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Summary

• Chief executive Bob Collymore on Friday said the plan by the sector regulator is targeted at punishing the firm’s success despite lack of proof that Safaricom is abusing its dominance.
• The CA proposals prohibit individually tailored loyalty schemes and promotions which the telco says would curtail Safaricom’s ability to deliver innovative products.

Safaricom now says it is not opposed to being declared a dominant player in the market as long as the proposal to regulate consumer prices by the Communications Authority of Kenya (CA) is removed.

Chief executive Bob Collymore on Friday said the plan by the sector regulator is targeted at punishing the firm’s success despite lack of proof that Safaricom is abusing its dominance.

“If we go by the definition of a dominant operator being one with 50 per cent market share, then we are in fact dominant in a number of market segments and this should be clearly positioned,” said Mr Collymore during a press briefing after the firm’s 10th AGM in Nairobi.

The CA proposals prohibit individually tailored loyalty schemes and promotions which the telco says would curtail Safaricom’s ability to deliver innovative products.

READ: Why Safaricom is opposed to CA's style of regulating market dominance

The regulations would also block Safaricom from introducing any products or services unless they are replicable by other operators. If implemented, the CA would force the firm to share infrastructure such as transmission sites and mobile money outlets with its rivals.

“These proposals are not forward-looking. We believe the focus should be on finding opportunities to enable all operators serve customers better, rather than reversing the gains of one operator,” said Mr Collymore.

He said the firm will ensure that their interests and those of customers are protected.