We are not lobbying for price fixing, says Safaricom

By Macharia Kamau

Leading mobile operator, Safaricom has termed the low calling rates as a disincentive to new investments and is likely to negatively impact on ICT growth in the long-term.

Bob Collymore, the firm’s chief executive further clarified that his firm was not lobbying the Government for intervention on the low calling rates but simply to warn of the long-term consequences of the bottom rates.

He said Kenya would find it difficult to achieve its ICT goals, including increasing an expanded ICT infrastructure and ICT usage if operators continue with ‘rock bottom’ charges.

The low returns, he said, would also discourage new investors from putting money into the sector.

"We cannot meet goals of high usage of ICT services and Internet as laid in Vision 2030 if we do not have money to reinvest," he said.

Collymore said he had appeared on Tuesday before the Parliamentary Committee on Energy and Communications on invitation and was not in anyway lobbying for Government to institute price controls,

Price controls

"We have not asked for price controls to be instituted. The Government should not intervene in retail pricing of services in the sector but need to understand its role in the provision of ICT services and make decisions from an informed position," explained Collymore.

He regretted that Safaricom’s meeting with the committee early this week was largely seen as a lobbying effort to have parliament push Government to put price controls.

Mr Collymore added that the firm had put a freeze on hiring new staff to help it cope with the low call rates that have seen a significant dip in revenues from voice services.