• Latest
  • All
  • How To
Bob Collymore

Kenya’s Telecoms Competition Recommendations a Fight Against Safaricom (Part II)

March 14, 2018
SMS

Kenyans Ditch SMS in Favor of WhatsApp and Chat Apps

July 1, 2025
DeepSeek_vs_ChatGPT

Hackers Build Malware That Tries to Reprogram AI Security Tools

July 1, 2025
Satellite Internet

Satellite Internet in Kenya Records 9.9% Decline in Users

July 1, 2025
Safaricom Ethiopia Celebrates Big Win with 10 Million Customers

Safaricom Ethiopia Celebrates Big Win with 10 Million Customers

July 1, 2025
DHgate Tablet Cases deals
Mobile Money

Kenya Hits 45 Million Mobile Money Users With M-Pesa in the Lead

July 1, 2025
tackling Bank Fraud, Sextortion, and Ransomware in Kenya

Kenya Facing Rise in Cyberthreats from Bank Fraud, Sextortion, and Ransomware

July 1, 2025
Kenya cyber threats 2025

Kenya Detects Over 2.5 Billion Cyber Threats in Three Months

June 30, 2025
Which ISP is best in Kenya

Kenya’s Best ISP: Faiba Claims the Crown for Fastest Internet

June 30, 2025
Cars in port awaiting clearing

Relief for Kenyans as Court Blocks KRA Tax Increase for Imported Cars

June 30, 2025
kenya nil returns process

KRA Extends Tax Return Deadline After iTax System Crashes

July 1, 2025
the process of setting up an Internet service provider (ISP) in Kenya

Airtel Rises While Safaricom Drops in Network Quality Scores

June 30, 2025
google gmail

Google Rolls Out AI Cleanup Tool on Web for Messy Gmail Inboxes

June 30, 2025
Techweez | Tech News, Reviews, Deals, Tips and How To
  • News
  • Entertainment
  • Reviews
  • Features
  • Editorial
No Result
View All Result
Techweez | Tech News, Reviews, Deals, Tips and How To
  • News
  • Entertainment
  • Reviews
  • Features
  • Editorial
No Result
View All Result
Techweez | Tech News, Reviews, Deals, Tips and How To
No Result
View All Result

Kenya’s Telecoms Competition Recommendations a Fight Against Safaricom (Part II)

Saruni Maina by Saruni Maina
March 14, 2018
in Opinion
Reading Time: 3 mins read
258
1
Bob Collymore

Bob Collymore, Safaricom CEO

Bob Collymore

In the first part of this piece, I addressed the issue of Safaricom being compelled to share their towers with other Tier 1 telcos in an effort to level the playing field for everyone. Well, that’s not the only issue that arises from Analysys Mason’s recommendations.

Aside from requiring that all of Safaricom’s standard tariffs, permanent loyalty schemes and promotions be profitably replicable by other Tier 1 competitors, Section 9.4.5 of the report recommends that the Communications Authority of Kenya (CA) prohibits Safaricom from running individually tailored loyalty schemes and promotions, case in point, Tunukiwa and Storo Bonus.

“Safaricom may not offer loyalty bonuses or promotions for which the qualification criteria require different levels of expenditure or usage by different subscribers in the same category. Categories could include prepaid subscribers, subscribers registered in particular geographic areas and subscribers to a particular tariff plan,” reads part of the report.

To justify this remedy, the report states, “We believe that the lack of transparency and potential discrimination in Safaricom’s Stori Ibambe na Storo Bonus scheme creates an opportunity for Safaricom to behave anti-competitively and makes it very difficult for the CA to test whether the offer is replicable. Consequently, we propose that in the future Safaricom may not offer loyalty bonuses or promotions for which the qualification criteria require different levels of expenditure or usage by different subscribers in the same category.”

Stifling Innovation

I get it, Analysys Mason is worried that there might be some juju behind how Safaricom runs some of these promotions, in particular when it comes to categorizing subscribers by how much they spend on the network, the criteria which Tunukiwa and Storo Bonus seem to employ. The report even claims that Safaricom’s market power could put the company in a position where it can discriminate amongst its own subscribers and this is why they recommend CA to not allow Safaricom to run such promotions.

However, the underlying issue here is understanding the reason such tailored promotions exist. We all use our phones differently, spend a certain amount of airtime daily and have different uses for data, SMS and Calls. These tailored promotions not only encourage subscribers to spend money on the network but they do so without pushing the financial limits of the subscriber. In short, the tailored promotions are an innovation that Safaricom uses to gain mileage.

Safaricom’s market leadership is as a result of years of innovation and millions of investment

Like any other consumer-facing company, Safaricom needs to constantly innovate and come up with new products and services to entice new customers and keep current customers interested. Analysys Mason’s recommendation to bar Safaricom from offering individually-tailored promotions will go a long way to stifle the company’s innovation may hurt the consumer in the long run, since there will no longer be the need for competitors to “innovate” to match what Safaricom is offering.

Angeline, through Kenyan Wall Street, terms this move as one that shifts the focus from the customer, “Therefore, by removing the focus from the customer, innovation decreases. Innovation is defined as the process of bringing to customers new products, new services, and new processes. That means when regulation creates a level playing field for all players, they will become lax and less inclined to innovate more,” she writes.

If CA is to implement such a restraint, let it be done across the board. Don’t cut the arms of one player to allow the other players to eat, instead, give equal portions of food to everyone. Like it’s huge investment in network coverage, Safaricom uses said promotions to set itself apart from the pack. As I conclude, it is prudent to note that Safaricom’s market leadership is as a result of years of innovation and millions of investment. As Mbugua Njihia said, “The market has favoured all players differently in the past. Some had a first mover advantage, others had a solid infrastructure plus asset base while others had access to deep pockets courtesy of a global pedigree.”

Tags: AirtelFaiba 4GSafaricomTelkom Kenya
SendShare146Tweet92
Saruni Maina

Saruni Maina

I Google Bing until it Yahoos! | Email: [email protected]

Related Posts

Safaricom Ethiopia Celebrates Big Win with 10 Million Customers

Safaricom Ethiopia Celebrates Big Win with 10 Million Customers

July 1, 2025
Mobile Money

Kenya Hits 45 Million Mobile Money Users With M-Pesa in the Lead

July 1, 2025
Which ISP is best in Kenya

Kenya’s Best ISP: Faiba Claims the Crown for Fastest Internet

June 30, 2025
the process of setting up an Internet service provider (ISP) in Kenya

Airtel Rises While Safaricom Drops in Network Quality Scores

June 30, 2025
Unified Payment Interface

CBK’s New Fast Payment System Plan Could Rival M-Pesa

June 24, 2025
Kenya Safaricom share sale

Kenya Plans Mega Sale of Safaricom Shares to Raise Over a Billion Dollars

May 26, 2025

Latest

SMS

Kenyans Ditch SMS in Favor of WhatsApp and Chat Apps

July 1, 2025
DeepSeek_vs_ChatGPT

Hackers Build Malware That Tries to Reprogram AI Security Tools

July 1, 2025
Satellite Internet

Satellite Internet in Kenya Records 9.9% Decline in Users

July 1, 2025
Safaricom Ethiopia Celebrates Big Win with 10 Million Customers

Safaricom Ethiopia Celebrates Big Win with 10 Million Customers

July 1, 2025
Mobile Money

Kenya Hits 45 Million Mobile Money Users With M-Pesa in the Lead

July 1, 2025
tackling Bank Fraud, Sextortion, and Ransomware in Kenya

Kenya Facing Rise in Cyberthreats from Bank Fraud, Sextortion, and Ransomware

July 1, 2025

Best devices

budget smartwatches 2025

Best Budget Smartwatches To Buy in Kenya 2025

February 13, 2025

Best Infinix Smartphones To Buy in Kenya 2024

February 13, 2025

Best Laptops for Battery Life in 2024

August 21, 2024

Best “Battery Warrior” Smartphones To Buy in 2024

August 22, 2024

Kenyans Ditch SMS in Favor of WhatsApp and Chat Apps

July 1, 2025

Hackers Build Malware That Tries to Reprogram AI Security Tools

July 1, 2025

Techweez is a fast growing influential source of technology news, reviews and analysis by leading tech geeks in the industry.

Follow Us

Editorials

Abductions and Arrests! Kenyan Government’s Fear and Hate of X Users Makes No Sense

Actors and Film Crews Are Worried About Veo 3 Taking Their Jobs

Samsung QLED TVs Now Officially Certified for Real Quantum Dot Technology

Trump’s Tariffs Will Be the End of Affordable Tech

5 Ways to Prep Your Tech for Resale

The Weaponization of PDFs: How Cybercriminals Are Exploiting a Trusted Format

More News

Kenya Detects Over 2.5 Billion Cyber Threats in Three Months

Kenya’s Best ISP: Faiba Claims the Crown for Fastest Internet

Relief for Kenyans as Court Blocks KRA Tax Increase for Imported Cars

KRA Extends Tax Return Deadline After iTax System Crashes

Airtel Rises While Safaricom Drops in Network Quality Scores

Google Rolls Out AI Cleanup Tool on Web for Messy Gmail Inboxes

  • Terms Of Use
  • Techweez Brand
  • Privacy & Policy
  • Contact Us

© 2024 Techweez - Palahala Media Group may earn a commission when you buy through links on our sites.
A Palahala Media Group Brand. All rights reserved.
.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Techweez | Tech News, Reviews, Deals, Tips and How To
Crunchy Cookies 🍪 Ahead!

Hey there! Just a heads-up: we're big fans of cookies - both the digital and edible kind! 🍪 We use our cookies and some from third parties to ensure your browsing experience on our site is smooth sailing and secure.

 

But wait, there's more! We also use cookies to gather stats and insights on how you navigate our site. It's like getting a behind-the-scenes peek at your digital adventures!

 

Don't worry, you're in control. You can adjust your cookie settings anytime to suit your preferences. Feeling curious? Dive into our Privacy Policy for all the juicy details. Happy browsing! 🚀

Functional Always active
Listen, this legal stuff is about as exciting as watching paint dry. But it basically says we only use your stuff for what you asked us to do, and nobody else gets to peek!
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
It's those sneaky cookie crumbs websites leave behind to count visitors, like counting ants at a picnic! Totally harmless, just for fun facts. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
Hey there! Just letting you know we use some fancy gizmos to remember your preferences. This way, we can show you ads that are, well, not completely bananas.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
Make cookies
{title} {title} {title}
Techweez | Tech News, Reviews, Deals, Tips and How To
Crunchy Cookies 🍪 Ahead!
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
Listen, this legal stuff is about as exciting as watching paint dry. But it basically says we only use your stuff for what you asked us to do, and nobody else gets to peek!
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
It's those sneaky cookie crumbs websites leave behind to count visitors, like counting ants at a picnic! Totally harmless, just for fun facts. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
Hey there! Just letting you know we use some fancy gizmos to remember your preferences. This way, we can show you ads that are, well, not completely bananas.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
Make cookies
{title} {title} {title}
No Result
View All Result
  • News
  • Reviews
  • Features
  • Editorial
  • Automotive
  • Entertainment

© 2024 Techweez - Palahala Media Group may earn a commission when you buy through links on our sites.
A Palahala Media Group Brand. All rights reserved.
.