1. Changing Landscape of African regulators Monica Kerretts –Makau (PhD) Senior Lecturer: Strathmore Business School Board Director –CCK

2. THE DIGITAL ENVIRONMENT

3. Traditional Challenges… Traditional Challenges… 1. Competition Framework - Dominant vs small Players - Price Regulation for Small and Wholesale. Compliance Framework 2. Regulatory Audit -Quality of Service -Certification of Digital signature -Counterfeit devices -Security 3. Technology Roll out

4. Why Regulate ? Regulation aims at: correcting market failures correcting market failures creating stable and competitive market environments creating stable and competitive market environments promoting benefits from services trade liberalization while minimizing attendant costs promoting benefits from services trade liberalization while minimizing attendant costs achieving other key domestic policy objectives (e.g. protecting consumers, developing domestic supply capacity, protecting the environment, maintaining cultural diversity and ensuring universal access to essential services) achieving other key domestic policy objectives (e.g. protecting consumers, developing domestic supply capacity, protecting the environment, maintaining cultural diversity and ensuring universal access to essential services) IN AFRICA SHOULD THE PRIORITIES BE THE ABOVE WITHIN THE AMBIT OF ACCESS AND EQUITY AND AFFORDABILITY ? IN AFRICA SHOULD THE PRIORITIES BE THE ABOVE WITHIN THE AMBIT OF ACCESS AND EQUITY AND AFFORDABILITY ? -Social /Economic/Cultural and Political ? -Social /Economic/Cultural and Political ?

5. Why Regulate … While the case for regulating services is widely acknowledged there is less agreement on what is good regulation While the case for regulating services is widely acknowledged there is less agreement on what is good regulation Broadly, good regulation should achieve the following: i) promote economic growth, ii) promote social welfare and environmental sustainability, iii) result in outcomes that meet expectations of key stakeholders (e.g., consumers, operators, investors) iv Promote equity (access, cost etc) Broadly, good regulation should achieve the following: i) promote economic growth, ii) promote social welfare and environmental sustainability, iii) result in outcomes that meet expectations of key stakeholders (e.g., consumers, operators, investors) iv Promote equity (access, cost etc) Regulation should be effective (i.e. achieving planned goals) and efficient (i.e. achieving goals at minimum costs) Regulation should be effective (i.e. achieving planned goals) and efficient (i.e. achieving goals at minimum costs)

6. Brief Kenyan Stats in light of regulation Post Paid subscribers – 26,260,564 million Post Paid subscribers – 26,260,564 million Prepaid subscribers -233,376 Prepaid subscribers -233,376 Total mobile users- 26,493,940 Total mobile users- 26,493,940 Mobile operators: Safaricom 17 million Safaricom 17 million Airtel – 4 million Airtel – 4 million Esar Telecom – 1.6 million Esar Telecom – 1.6 million Telkom Orange – 2.7 million Telkom Orange – 2.7 million

7. Kenyan stats in light of regulation Mobile money – 18.4 million subscribers (69.5 % of total mobile subscription) Mobile money – 18.4 million subscribers (69.5 % of total mobile subscription) Mobile deposits 58 billion Kes (580 million dollars) Mobile deposits 58 billion Kes (580 million dollars)Internet: 5.4 million mobile subscribers (data) BUT IS THIS IT?

8. Shifting space……Is it only about technology? 1. Framework for Consumer Protection - Rights for good quality service - Rights for fair price - Rights for access to service (across gender, age, disability etc)

9. Shifting space ….What should I be concerned about more? 2. Framework for new VAS providers (in light of new technologies) - Encouraging content writes - Encouraging young innovative techs in the market

10. Shifting space…Who is the regulator? 3. Independent Decision making/System - Integrity issues - Personal interests - Regulatory Capture (Industry and Government) - Political interest

11. Changing space… 4. Who else regulates? Whose space am I also in? - Energy Authority /Regulator - Competition Authority /Regulator - Institutions and Agencies concerned with access in education, age disparity, disability etc

12. Changing space…. 5. Internal/External Structures and Functions -Who do I talk to? -How can I reach them? -Who understands me? -Dispute Resolutions?

13. Changing landscape…. Regulation now also about Lobbying? Regulation now also about Lobbying? - For what? - Appreciation of regulation/regulatory role - Integration of national plans and policies – not an Isolated policy making process - Perception of Regulation - Consumer awareness

14. REGULATION A SHIFTING MINDSET…..