Changing Landscape of Changing Landscape of African regulatorsAfrican regulators

Monica Kerretts –Makau (PhD)Monica Kerretts –Makau (PhD)Senior Lecturer: Strathmore Business Senior Lecturer: Strathmore Business

School School

Board Director –CCK Board Director –CCK

THE DIGITAL ENVIRONMENTTHE DIGITAL ENVIRONMENT

Traditional Challenges…Traditional Challenges…

1. Competition Framework1. Competition Framework- Dominant vs small PlayersDominant vs small Players- Price Regulation for Small and Wholesale . Price Regulation for Small and Wholesale .

Compliance Framework Compliance Framework 2. Regulatory Audit2. Regulatory Audit-Quality of Service -Quality of Service -Certification of Digital signature-Certification of Digital signature-Counterfeit devices -Counterfeit devices -Security-Security3. Technology Roll out 3. Technology Roll out

Why Regulate ? Why Regulate ? Regulation aims at:Regulation aims at: correcting market failurescorrecting market failures creating stable and competitive market environmentscreating stable and competitive market environments promoting benefits from services trade liberalizationpromoting benefits from services trade liberalization while while

minimizing attendant costsminimizing attendant costs achieving other key domestic policy objectivesachieving other key domestic policy objectives (e.g. protecting (e.g. protecting

consumers, developing domestic supply capacity, protecting the consumers, developing domestic supply capacity, protecting the environment, maintaining cultural diversity and ensuring universal environment, maintaining cultural diversity and ensuring universal access to essential services)access to essential services)

IN AFRICA SHOULD THE PRIORITIES BE THE ABOVE WITHIN IN AFRICA SHOULD THE PRIORITIES BE THE ABOVE WITHIN THE AMBIT OF ACCESS AND EQUITY AND AFFORDABILITY ? THE AMBIT OF ACCESS AND EQUITY AND AFFORDABILITY ?

-Social /Economic/Cultural and Political ? -Social /Economic/Cultural and Political ?

Why Regulate …Why Regulate … While the case for regulating services is widely While the case for regulating services is widely

acknowledged there is less agreement on what is acknowledged there is less agreement on what is good regulationgood regulation

Broadly, Broadly, good regulation should achieve the good regulation should achieve the following: i) promote economic growth, ii) promote following: i) promote economic growth, ii) promote social welfare and environmental sustainability, iii) social welfare and environmental sustainability, iii) result in outcomes that meet expectations of key result in outcomes that meet expectations of key stakeholders (e.g., consumers, operators, stakeholders (e.g., consumers, operators, investors) iv Promote equity (access, cost etc)investors) iv Promote equity (access, cost etc)

Regulation should be Regulation should be effective effective (i.e. achieving (i.e. achieving planned goals) and planned goals) and efficient efficient (i.e. achieving goals (i.e. achieving goals at minimum costs)at minimum costs)

Brief Kenyan Stats in light of Brief Kenyan Stats in light of regulationregulation

Post Paid subscribers – 26,260,564 millionPost Paid subscribers – 26,260,564 million Prepaid subscribers -233,376Prepaid subscribers -233,376 Total mobile users- 26,493,940Total mobile users- 26,493,940

Mobile operators:Mobile operators: Safaricom 17 millionSafaricom 17 million Airtel – 4 million Airtel – 4 million Esar Telecom – 1.6 millionEsar Telecom – 1.6 million Telkom Orange – 2.7 million Telkom Orange – 2.7 million

Kenyan stats in light of regulationKenyan stats in light of regulation

Mobile money – 18.4 million subscribers Mobile money – 18.4 million subscribers (69.5 % of total mobile subscription) (69.5 % of total mobile subscription)

Mobile deposits 58 billion Kes (580 Mobile deposits 58 billion Kes (580 million dollars) million dollars)

Internet:Internet:

5.4 million mobile subscribers (data)5.4 million mobile subscribers (data)

BUT IS THIS IT? BUT IS THIS IT?

Shifting space……Is it only about Shifting space……Is it only about technology? technology?

1. Framework for Consumer 1. Framework for Consumer ProtectionProtection

- Rights for good quality serviceRights for good quality service- Rights for fair priceRights for fair price- Rights for access to service (across Rights for access to service (across

gender, age, disability etc) gender, age, disability etc)

Shifting space ….What should I be Shifting space ….What should I be concerned about more? concerned about more?

2. 2. Framework for new VAS Framework for new VAS providers (in light of new providers (in light of new technologies)technologies)

- Encouraging content writesEncouraging content writes- Encouraging young innovative techs Encouraging young innovative techs

in the market in the market

Shifting space…Who is the Shifting space…Who is the regulator? regulator?

3. Independent Decision 3. Independent Decision making/Systemmaking/System

- Integrity issuesIntegrity issues- Personal interestsPersonal interests- Regulatory Capture (Industry and Regulatory Capture (Industry and

Government) Government) - Political interest Political interest

Changing space…Changing space…

4. 4. Who else regulates? Whose Who else regulates? Whose space am I also inspace am I also in? ?

- Energy Authority /RegulatorEnergy Authority /Regulator- Competition Authority /RegulatorCompetition Authority /Regulator- Institutions and Agencies concerned Institutions and Agencies concerned

with access in education, age with access in education, age disparity, disability etc disparity, disability etc

Changing space….Changing space….

5. 5. Internal/External Structures and Internal/External Structures and FunctionsFunctions

-Who do I talk to?-Who do I talk to?

-How can I reach them?-How can I reach them?

-Who understands me?-Who understands me?

-Dispute Resolutions? -Dispute Resolutions?

Changing landscape….Changing landscape….

Regulation now also about Regulation now also about Lobbying? Lobbying?

- For what?For what?- Appreciation of regulation/regulatory roleAppreciation of regulation/regulatory role- Integration of national plans and policies Integration of national plans and policies

–not an Isolated policy making process–not an Isolated policy making process- Perception of RegulationPerception of Regulation- Consumer awareness Consumer awareness

REGULATION A SHIFTING REGULATION A SHIFTING MINDSET…..MINDSET…..