State acts to fix mobile phone wars

By David Ochami

The Government has created a taskforce to resolve mobile telephone operators’ disputes.

The taskforce will also address the functions of the service providers’ money transfer operations and align them to the conventional banking system and price of calls between rival companies.

Prime Minister Raila Odinga announced yesterday the taskforce formed on Tuesday will publish its findings after two weeks and disclosed to Parliament that the Government will propose new stiffer laws against vandalism of telecommunication infrastructure.

The PM also announced that on April 1 the Communication Commission of Kenya (CCK) will launch mobile number portability to enable customers freely change networks without changing numbers.

Meanwhile, Raila also said the price wars among mobile operators and outsourcing of services by them will neither lead to the collapse of any of them nor lead to the flight of jobs because CCK has sufficient safeguards to avert a meltdown like the one that occurred in Sri Lanka several years ago.

Dominant operator

Raila disclosed that the Government would not encourage protectionism within the industry or roll back Government divestiture from the industry although telecommunications is considered a key sector.

"Telecommunications is strategic but that does not mean the Government should own it," said Raila.

He also said the Government does not encourage monopoly practices in the industry.

"If not regulated, this scenario leads to monopoly rates and market distortion by the dominant operator," said Raila.

Added he: "Competition is always healthy as long as the playing field is level so that all competitors compete fairly."

The PM said objective regulation of the industry has spurred healthy competition, reduced calling charges, including across networks and price of gadgets.

"The conclusion is that the reduced interconnection fees have triggered a reduction in the call tariffs. This has in turn increased accessibility to mobile phone telephony by more Kenyans," said the Prime Minister.