IEA Holds a Media Briefing on The Telecommunication Sector in Kenya: Analysis Of The State Of Competition.

Post Date: 24 April 2018   |   Category: General   |   Hits: 449

Institute of Economic Affairs (IEA Kenya) held a media briefing on Wednesday, 5th April 2018 at the Sarova Stanley Hotel on The Telecommunications Sector in Kenya. 

The Presentation made during the briefing was part of a Memorandum done by the Institute of Economic Affairs in collaboration with oxygen and presented to the Competition Authority during a workshop held on Tuesday, 20th February 2018. This was in response to a study published by Analysys Mason consultants, on behalf of the Competition Authority, who had concluded that Safaricom has dominant market share currently standing at 70 per cent and 80 per cent in the mobile communications and Mobile Money Market respectively and called for regulatory interventions.

According to the study findings by Analysys Mason consultants, one of the key impediments to thriving competitive industry pertains to infrastructure. In order to cure this problem, the report proposed a policy change to require the sharing of infrastructure in seven counties that the consultant noted are the most disadvantaged in terms of connectivity and network availability. The counties include; Garissa, Turkana, Marsabit, Mandera, Samburu, Wajir and Isiolo. 

Speaking during the media briefing, Mr. Kwame Owino, Chief Executive Officer at IEA, said that the compulsion of Safaricom Kenya Limited or other market players to share their infrastructure with competitors is a disincentive for infrastructure investment because it sends the signal that the state may appropriate that infrastructure and allow it to be used by a competitor.

Among the media houses represented during the briefing include; the standard group – both print and electronic media, Nation Media Group print and electronic media, Citizen TV, K24 Capital FM among other media houses. 

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