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Demystifying the Supremacy War in Kenya’s Telecommunications Sector

BY Soko Directory Team · September 17, 2019 05:09 am

For a very long time, the issue of dominance has dominated Kenya’s telecommunications industry. Some say the issue is so deep-rooted into the sector that it can never be eliminated or neutralized.

The debate, for years, has been that some “established” players in the sector take advantage of them being sole providers of certain products and services to reap big from the consumer.

Simply put, dominance is where there is only one service or product provider, curtailing the customers’ freedom to choose on the kind of product he/she wants. In a dominance environment, the customers have no otherwise but to subscribe to a product or service from a certain provider.

Dominance can happen even when there are other players. It becomes toxic when the perceived “main” player wants to tower over the perceived “small” players so that they never rise to see the light of the day.

Elimination of dominance provides a leveled playing field for service providers to go to the consumer with their products and services and let the client choose with no “preferred” player in mind. It creates freedom of innovation and competition to let the customers choose what suits them.

A lot has been said in the ongoing Airtel-Telkom merger and the impact the merger is likely to have on service delivery and how the customers are directly going to benefit.

What has already been said and still being said is theory built on unfounded truths propelled by individuals who rarely use the services unlike us, the real consumer on the ground.

As someone who relies on the telecommunications industry for services that I later give to my clients, the merger comes as a new dawn to my business and to millions of other Kenyans out there looking for an alternative reliable service provider.

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There are various reasons why the merger is going to shift goalposts in Kenya’s telecommunications industry:

First, there is going to be an elimination or the neutralization of the dominance issue. The merger, according to me, is set to create two major players in the telecommunications sector giving the consumer the freedom to choose on the service provider they want. This also implies that each player will be free to innovate and provide services without having to worry about the other domineering over them.

Second, there will be an equal or slightly equal spectrum. Spectrums are to telecommunications companies as waves are for radio stations.  Equal spectrum brings a leveled ground in terms of network expansion and service delivery. With the merger, Kenyan will now have two major players standing on the same leveled ground with the customer standing to benefit. Nothing infuriates Kenyans than a service provider with the weak network coverage. With equal spectrum, players in the sector will have room to expand the strength of their network coverage aimed at giving customers the best.

Third, there will be affordable services such as low call rates and data availability. Let me tell you something about Kenyans; Kenyans don’t like free things but they love affordable things. With two able players in the sector, the war will shift on having the best prices for the customer. They say in Swahili that fahali wawili wakipigana, nyasi huumia but in this case, fahali wawili watakapoanza kumenyana, nyasi zitafurahia.

Fourth, and most importantly, there will be better service delivery. In the business world, competition drives innovations. Where there is a healthy competition, good things often manifest and in this case, better services.

My views are not cast on stone. You can leave your views in the comment section after this article.

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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