Kenya: Revised competition study will not recommend breakup of Safaricom

Kenya: Revised competition study will not recommend breakup of Safaricom

The Communications Authority of Kenya (CA) is finalising a revised report on competition in the country’s telecoms sector, following consultations with industry stakeholders. Business Daily writes that the study will not lead to the breakup of Safaricom, the country’s largest mobile operator by subscribers, as had been previously recommended by an earlier report. The draft, which was commissioned by the CA to examine competition in the sector, reportedly suggested the separation of Safaricom’s core telecoms operations from its mobile financial service M-PESA, as well as the imposition of retail price controls and infrastructure sharing, in order to level the playing field.

Additional changes to the initial document reportedly include a reduction in the number of counties where operators would be required to provide national roaming (and where Safaricom would be required to share its towers) from 14 to seven. The revised report is expected to be released by the regulator by the end of this month.

Source: TeleGeography



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