Nipate
Forum => Kenya Discussion => Topic started by: Omollo on September 22, 2014, 04:26:31 PM
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We can just wait for siku ya mazishi. This is one mega blow. On the other hand one can see the pervasive power and influence of tribalism. ALL the decisions have been made by ethnic Kikuyus. The applicant - Equity - is a Kikuyu.
Safaricom has lost the battle battle to block Equity Bank from rolling out mobile money services using thin-SIM card technology as regulators granted approval.
The approvals, officially announced on Monday, were given by both Communication Authority of Kenya and Central Bank of Kenya.
The two dismissed Safaricom objections against the new card, which will ride on the existing SIM cards, saying that initial investigations show “that no major complaints and particularly on interception of traffic of the primary SIM card has been reported so far.”
However, to address the concern raised in totality, the rollout is to be done on a one-year pilot basis to give the two regulators opportunities to carry out a detailed study on the technology.
In a press briefing on Monday, Communications Authority board chairman Mr Ngene Gituku and CBK governor Mr Njuguna Ndung’u said the pilot will run for a year.
“We had a board meeting Friday and agreed that Equity Bank will roll out on a pilot basis, if vulnerabilities are found within the period, its services will be cut,” said Mr Gituku.
Equity Bank is to rollout the service under its subsidiary Finserve Kenya.
Mr Ndung’u said Central Bank wanted to understand the system fully before giving the go ahead.
“We do this to encourage prudent behaviour within the market not to shut the market from innovations,” Mr Ndungu added.
COMPROMISE SECURITY
In objecting to the rollout of the service, Safaricom raised concern on the security of the card, saying it could compromise the security of its 19 million money transfer service customers.
“Based on the opinion of GSMA, save for the inherent vulnerabilities of all SIM cards, there are no specific and confirmed vulnerabilities arising from the use of the thin SIM,” Mr Gituku added.
Over the pilot period, only Taisys’ thin SIM, proposed by Equity Bank, will be allowed to operate in the Kenyan market.
“Regulators decided to allow only Taisys to roll out in Kenya under a pilot, this will help give us in-depth analysis into the technology without exposing the market to many risks,” explained CA director general Mr Francis Wangusi.
According to Mr Gituku, CA board made the decision following elaborate consultations that ascertained; the technology complies with all minimum mandatory international thin SIM standards, no major complaints on the technology on interception of traffic of primary SIM have been reported.
Further, CA said China National Computer Quality Supervising Test Centre and Bank Card Test Centre of China showed that Taisys SIM complies with International Organisation for Standardisation (ISO) and European Telecommunications Standards Institute (ETSI) standards.
The Global System for Mobile Association (GSMA) found no specific and confirmed vulnerabilities arising from the use of the thin SIM.
CA has therefore begun the process of hiring an internationally reputable firm to conduct a security audit on the thin SIM during the piloting.
“The winning firm will find out vulnerabilities of using it and recommend a framework for SIM card use in Kenya.”
The new thin SIM technology has been the subject of a vicious fight between Equity bank and mobile phone market leader Safaricom.
The Energy and Communications Committee, chaired by Mr Jamleck Kamau, early this month (Wednesday 10) ordered CA to seek the board’s approval after announcing that Equity should roll out the technology.
“This project should not continue until the board has made its decision,” said Mr Kamau before the committee.
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That is great move. Regulators (CAk,cbk) should always adopt pro-innovation stance. Equity with other banks opposed Safaricom M-pesa but CBK said no. Safaricom are now opposing the entry of Equity Bank and thankfully the regulators have said NO.
Now let us see the fight. I still see Equity being floored by Safaricom and others...first through interconnection fees...unless that slim card will only be used for sending and receiving money...but still Equity has to pay for sending and receiving messages via somebody else network.
I see Equity being slaughtered...but maybe they can win given the've build trust amongst the bottom pyramid.
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Like I said before, Safcon was more concerned with self-preservation and they bribed some bazungus to exaggerate the risks of thin-SIM technology. What is certain is MPesa transaction fees will fall mighty fast and expect crazy promotions and stupid offers to blind idiots
http://www.nipate.org/index.php?topic=222.0
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I doubt. Safaricom are not making a lot of monies from transaction fees. Agents are complaining. Now add to taxes (VAT+sijui what). And there is really no scope for reducing transaction fees...
Equity are promising reduce fee..but how practically is that...unless they think kenyans will just be swapping money from accounts virtually...and not actually withdrawing them?
Equity will have to recruit 100,000 agents in every corner of kenya all armed with real money all the time to compete ....they will have to pay taxes....and the margins will become similar to M-PESA.
What is certain is MPesa transaction fees will fall mighty fast and expect crazy promotions and stupid offers to blind idiots
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(http://www.itwebafrica.com/images/stories/taisyssimcards.jpg)
Thin Sim works independently as a second card without interfering with the primary Sim. The subscriber must select which Sim to use and only one Sim can be active at any one time. Taiwan-based Sim manufacturer Taisys Technologies, which has a similar slim sim technology, insists that the Thin Sim is not intended to disrupt or interfere with functions of the primary Sim.
The bank will integrate all its banking services into any mobile phone regardless of whether it is a smartphone or a feature phone, to give it the flexibility in pricing structure across its set services.
The idea could lead to a mobile money price fight but the end result could only benefit the customer. The lender said it will charge just one per cent on phone-to-phone transfers with a fee cap of Sh25 irrespective of the transferred amount.
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Here’s How Equity Bank’s Mobile Venture Will Work (http://www.startupacademy.co.ke/blog/heres-how-equity-banks-mobile-venture-will-work/)
http://www.economist.com - Disrupting mobile banking in Kenya (http://www.economist.com/blogs/baobab/2014/09/disrupting-mobile-banking-kenya)
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Due to safety concerns, I will not recommend anyone use a thin simcard to transact money, especially when its not insured.
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Due to safety concerns, I will not recommend anyone use a thin simcard to transact money, especially when its not insured.
You probably have loads of safaricom shares otherwise give solid reasons, CAK and CBK just okayed it
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I also recommend negroes to walk because matatus are metallic coffins
Due to safety concerns, I will not recommend anyone use a thin simcard to transact money, especially when its not insured.