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Telkom Kenya tells of 'betrayal' by the CCK [Nation (Kenya)](Nation (Kenya) Via Acquire Media NewsEdge) Telkom Kenya says it feels betrayed by a decision by the Communication Commission of Kenya to approve Airtel Kenya as the only host of three new mobile service providers. The three, Tangaza Pesa, Zioncell and Finserve Africa Limited, were licensed two weeks ago to offer mobile phone services as mobile virtual network operators (MVNOs), a new licensing regime where operators are not required to lay their own infrastructure but to ride on established structures. Telkom Kenya chief executive Michael Ghossein told Sunday Nation his company had discussed with the regulator on the possibility of hosting some of the applicants. "We were very open with CCK on hosting MVNOs on our spectrum. Finserve Africa had approached us, and we were awaiting CCK's approval," said Mr Ghossein. The lack of clarity from the regulator, he said, made it difficult to strike deals with the MVNOs that have already approached the company. "The result is inequitable distribution of partnerships and market concentration of MVNOs to a single operator. "We have written to CCK regarding oversight in rules of engagement on how mobile operators should do business," he said. "It is unfair that the regulator could issue all three licenses to one operator without contractual guidelines." But CCK maintained that the MVNOs made their own choices about who would host them. "All we did was vet the capacity of the mobile operator to host other operators." "As well, we are on course to releasing regulations to guide spectrum utilisation, quality of service and broadcasting," said CCK Director-General Francis Wangusi. Mr Ghossein said his major concern was the cost of the license for MVNOs Sh100,000 yet they have the opportunity to offer all services, including voice, data, mobile money transfer services and SMS, which makes them serious competitors even when they have barely invested compared to the telecoms. Telkom Kenya is currently involved in management wrangles, a factor that could have informed CCK's decision to award the rights to Airtel. Meanwhile, Safaricom has maintained that it will not share its spectrum, with chief executive Bob Collymore saying the network has cost the company billions in infrastructure and years of hard work. The MVNOs are entering the arena specifically targeting mobile money, gaining access to an innovative service that has made Safaricom a worldwide brand. The new entrants are expected to intensify the competition for Safaricom, which has refused to avail its network to rivals. Equity, which has for a long time had boardroom wrangles with Safaricom over mobile money application M- Kesho, now has a chance to deal in mobile money through Finserve Africa Limited. "It is true, we do have a license now and shall launch our services before May. The convergence between telecommunications and banking will transform the country," Equity Bank chief executive James Mwangi said last week at the bank's first-quarter investors' briefing. The entry of MVNOs brings with it new competition to existing operators as the newcomers will be able to offer their services through their own SIM cards, which is what they have lacked all along. Equity Bank head of mobile money, John Stanley is quoted in the book Money Real Quick as saying, "Whoever controls the SIM card controls the ecosystem." Tangaza Pesa chairman Oscar Ikinu says that with access to the SIM card, he is raring to tap into the Kenyan market and, later the regional market. "We want to deliver value to our customers, most of whom only use their phones to send money, to enable them access a number of new applications." Another MVNO operator, Julian Kyula, the chief executive of MoDe which will operate Zioncell said they are targeting specific groups such as churches, the youth and farmers, with customised solutions that can serve their unique needs. "Smaller companies have the latitude to address these groups more intimately, and this is where we come in." (c) 2014 Nation Media Group. All Rights Reserved. Provided by Syndigate.info, an Albawaba.com company |