CA set to audit telecoms sector for market dominance
Communications Authority director-general Francis Wangusi (right) with the board chairman Ngene Gituku (left) during a public and stakeholders forum on the draft Kenya Information and Communications Regulations 2016 at the Laico Hotel on April 18, 2016. PHOTO | DIANA NGILA | NATION MEDIA GROUP
What you need to know:
Mr Francis Wangusi said a team had been formed to handle a new ICT framework under the new policy that will also aid in defining dominance and other issues in the sector.
The CA says the consultant’s report is expected to offer insight into the market status and facilitate decision-making in prescribing proportionate and appropriate regulatory actions.
The Communications Authority of Kenya (CA) is set to re-advertise for consultancy services that will examine the country’s telecommunication and broadcasting sectors for market dominance and anti-competitive behaviour, after an earlier attempt flopped.
Mr Francis Wangusi, the CA director-general Monday said a call for international consultants made in September attracted a single firm, which automatically made the process non-competitive.
The consultant will, among other things, identify the relevant markets (sub-markets) within the telecommunications sub-sector, the number of players and their respective market shares.
The delay in contracting the consultant means that the self-imposed deadline by CA to ensure that the dominance laws are in place by March 2017 will be pushed to a further date.
ABUSE OF DOMINANCE
“The first tender to determine the issue of dominance was non-responsive and fresh bids will be sent out to hire an international consultant,” Mr Wangusi said in Nairobi.
“It is only through the abuse of dominance that we can have a market crash and affirm that what may be dominant today may not still be dominant tomorrow (Tuesday),” he noted.
He said a team had been formed to handle a new ICT framework under the new policy that will also aid in defining dominance and other issues in the sector.
The consultant’s brief also includes review of existing policy, legal and regulatory frameworks on competition, recommending appropriate changes to enhance effectiveness as well as give remedies for issues identified.
The CA says the consultant’s report is expected to offer insight into the market status and facilitate decision-making in prescribing proportionate and appropriate regulatory actions.
Independent research will assist the authority in identifying and developing key market interventions necessary to facilitate continued growth and economic efficiency in the sector, while promoting sustainable investments, access and affordability, the tender documents say.
