So today Safaricom announced it full year results today. Apparently Safaricom had turnover up 19.1% to Sh83.96b, subscribers up 18.2% to 15.79m ; dividend up 100% to Sh8b at 20cents a share and a profit of over sh20b. But along with that announcement that the Information PS Ndemo annouces that the THE KENYA INFORMATION AND COMMUNICATIONS (FAIR COMPETITION AND EQUALITY OF TREATMENT) REGULATIONS, 2010 been suspended to be reviewed! Nkt!!
Now I’m sure that most of you(Kenyans that is) have heard if not read about the aforementioned regulations. They mostly protect the smaller operators from bullying from the dominant player(Safaricom). It mostly(actually only, I think) deals with interconnection rates. So that means when Safaricom decides to raise interconnection rates they have to prove that they’re doing it because their costs to do so have gone up. It also states that “A licensee shall maintain accounting separation techniques to be focused on the separation of revenues, costs and capital employed into categories in order to ensure that there is no discrimination between internal and external pricing in all services provided by the licensee.”(Taken verbatim from the regulations)
I really don’t see that as price control, do you? Even if it is it protects the consumer. And the fact that it’s only Safaricom complaining should tell you the other players have no problem with them. In fact some of them even praised the regulation! So why exactly are they being suspended? After all CCK is supposed to look at all players as equal but hey Safaricom hates them so lets be their bitch and do exactly what they say!