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Why Safaricom Wants Starlink Partnership Now

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Who will not be worried when Elon Musk comes to competition-town? “In a formal letter addressed to the Communications Authority of Kenya (CAK), Safaricom urged the regulator to consider requiring satellite providers to partner with local mobile network operators.” Yes, Safaricom had modeled that Elon Musk’s Starlink will just handover the bandwidth to it, and it can distribute to customers on its own terms. Unfortunately, Elon Musk does not work that way.

A report by the Kenyan Wall Street earlier this month disclosed that Starlink had initially approached Safaricom for a partnership before its entrance into the Kenyan market. However, Safaricom rejected the proposal citing concerns over regulatory oversight due to Starlink’s cross-border service model.

Recall that Safaricom in August this year, called for stricter regulations on Satellite Internet providers, amid Starlink’s entry into Kenya. In a formal letter addressed to the Communications Authority of Kenya (CAK), Safaricom urged the regulator to consider requiring satellite providers to partner with local mobile network operators.

And that is the challenge for Safaricom and other terrestrial players like MTN and Glo. There is no satellite company in the world that can match SpaceX Starlink on cost per bandwidth. Why? Only SpaceX has the capacity to design, implement, launch and distribute with all engineering done in-house. Other sat companies will require a launch partner if they’re able to design! And that asymmetric advantage will keep compounding for SpaceX.

Largely, you cannot find a better partner than Starlink on cost efficiency right now. That explains why suddenly Safaricom wants to partner with Starlink after seeing it as the bad guy across the street: “Peter Ndegwa, CEO of Safaricom, disclosed that the company is considering partnerships with Starlink …”

That said, as satellite disintermediates the GSM era in Africa, regulators must make sure the American and European firms pay the right taxes. Telcos are rainmakers when it comes to taxes; we cannot afford to have a Netflix-like-tax system in Africa where the more you watch, the poorer the tax coffers become, because the local players are losing market share even when what is causing the loss has limited contributions to the tax system.

Starlink is free to replace the poor GSM networks but it must be required to pay adequate taxes!

Comment on LinkedIn Feed

Comment: Totally agree on the tax angle. Hopefully regulators in Africa will wise up but you know Prof that the cost would eventually be passed to the consumers.

However, I am not sure Starlinks has any value to gain in partnering with Safaricom or telcos in Africa. On the long term, Safaricom’s and other local telcos real strength lies in focusing on complementary services that leverage their deep understanding of the local market and consumer needs—areas where Starlink cannot easily compete. By embracing the inevitable change and pivoting to value creation, Safaricom can turn this threat into an opportunity.

My Response: Before “complementary services” will have any value, you need to have the core service. Today, the core service is a quality network. With telcos declaring losses in Nigeria, they have limited funds to invest in capacity. That is the core service they are neglecting. If Starlink picks that, they will be disintermediated to the point that no one will care about the complementary services

Safaricom Reconsiders Partnership With Elon Musk Starlink, as Telecom Competition Hits in Kenya

Safaricom Reconsiders Partnership With Elon Musk Starlink, as Telecom Competition Hits in Kenya

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Safaricom, Kenya’s leading telecom operator, has confirmed ongoing discussions with Elon Musk’s Starlink and other satellite providers, signaling a shift in strategy as competition heats up in its home market, where the telco has long maintained a dominant position.

Peter Ndegwa, CEO of Safaricom disclosed that the company is considering partnerships with Starlink or other satellite providers to ensure cutting-edge technology integration.

A report by the Kenyan Wall Street earlier this month disclosed that Starlink had initially approached Safaricom for a partnership before its entrance into the Kenyan market. However, Safaricom rejected the proposal citing concerns over regulatory oversight due to Starlink’s cross-border service model.

Recall that Safaricom in August this year, called for stricter regulations on Satellite Internet providers, amid Starlink’s entry into Kenya. In a formal letter addressed to the Communications Authority of Kenya (CAK), Safaricom urged the regulator to consider requiring satellite providers to partner with local mobile network operators.

Part of the letter reads,

“Satellite coverage inherently spans multiple territorial borders and in doing so has the potential to illegally provide services and cause harmful interference within the territorial borders of the Republic of Kenya”.

The telecom giant is advocated for a regulatory framework that ensures satellite providers like Starlink operate under similar conditions as local telecom companies, particularly regarding licensing, service standards, and contributions to the Universal Service Fund, which supports the expansion of telecommunications services to rural and underserved areas.

Meanwhile, in response to Starlink’s entry, Safaricom has upgraded its home fire speeds to maintain its competitive edge in the market. The telco, which dominates various aspects of Kenya’s telecom sector, has recognized the need for collaboration with satellite providers to stay ahead.

Despite initial reluctance, Safaricom CEO Ndegwa has recently acknowledged that talks with Starlink have continued, indicating a pragmatic approach from both sides.

“We have had some discussions, and we will continue to have those discussions to the extent that they complement what we are offering”, he said.

Safaricom’s decision to partner with Musk Starlink sparked mixed reactions from Kenyan Netizens on X,

@Gonza_254 wrote,

“Safaricom is so obsessed with being a monopoly, they don’t want competition, so that they can do what they want”.

@EliakimS16 wrote,

“Which partnership is this? Let’s just have the two operate as it is. We will have better services.”

@nash_nzioka wrote,

“Safaricom has dominated and exploited the market for long. Anti-trust Law should be implemented to deter such kind of collusion and to allow Starlink which is a worthy competitor, to square it with Safaricom.”

@KLukoko wrote,

“Safaricom hates competition, and thrives as an exploitative monopoly. By dangling a partnership deal, means one thing, Safaricom has been rattled.”

The change in Safaricom’s stance change in Safaricom’s stance aligns with comments from Kenya’s President William Ruto, who recently stated that the decision to allow Starlink into the country was driven by the government’s desire to promote healthy competition, which would lead to better quality and more affordable Internet services. President Ruto emphasized that competition encourages innovation, noting that Safaricom had already stepped up its game in response to the new market dynamics.

Starlink on the other hand, has been aggressively expanding its global footprint, aiming to disrupt the telecommunications and ISP sector through its satellite internet service. Musk also confirmed that Starlink will soon have 300 satellites providing continuous coverage over mid-latitudes, enabling direct-to-mobile phone service, a potential game-changer in the telecommunications industry.

Where really is your ‘Community’ in Web 3?

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Where really is your ‘Community’ in Web 3?

Some days ago I was responding to a post by Osueke Henry .  He was questioning the power of incentives to ‘Community’ and suggested it was a Mirage. Following up on the same theme, he commented : It’s time to build communities … where people come to contribute, not just consume… where ideas are the currency, and growth is the reward.’

I’m not sure the open market end of Web 3 has even consumers in the normal sense. I’m also not sure the environment can be classed as Web 3. The customer at the retail end off ‘cryptographic architectures’ seems to be somewhere between a reseller and a gambler.

When we look at human behaviour, the concept of ‘collecting things’ is ingrained deep in our psyche.

People have over time, built huge collections of all sorts of things. From when I was a tiny little boy up to now, I have seen people collect things that were predictable, to some things that were very strange.

Birds eggs, birds feathers, beer caps, beer mats, coins, postage stamps, cards of footballers, baseball cards, different sports people. Autographed sports gear, music works of entertainers, pokemon cards..

While there was the vague notion that some rare specimen may become valuable because of the gulf between demand and scarcity, people generally created these pastimes as human bridges and in this, formed a community.

Where indulgences are concerned, people sometimes express themselves through property whose value is subjective.

The more ‘things’ they own, the more the concept of individual expression through ‘things’ gets diluted. You may have hundreds of pairs of shoes, but that VIP party you get to go to? You only have two feet with you there!

It doesn’t matter how many iconic cars you own. If you roll down Akin Adesola in VI on a Sunday, you can only drive one.

Not everyone has that type of personality where visible extensions of themselves are important to their sense of portrayal.

Even if they have, thousands of lifetimes are necessary to illustrate all the angles of ‘me’ collectibles in Web3 make possible.

The concepts of ‘Repeat Business’ and ‘Customer Continuity’ are unattainable. Nobody is building with that core to their model.

So what model are they building to? Well, this is where the whole concept of ‘community’ as web 3 marketing have it, are totally out of sync.

But to understand the development of this ‘fake’ web 3 community environment, we have to go back to the origin of cryptocurrency.

With the explosion of ‘ERC 20’ tokens drowning out REAL cryptocurrency coins coming from REAL blockchains that were mined, exchanges started to become under regulatory attack, and gamblers (cough) ‘investors’ began to dump almost instantaneously as they bought.

The day of the $hitcoin had dawned.

So, the ‘Casino’ and ‘Bookie’ end of the spectrum, who couldn’t just randomly pump silly ERC 20 tokens anymore had to come up with a new plan.

So here it was, invent all this low quality, 10,000 run computerized excuses for art, and use cheap tokenizing off cryptographic architectures that aren’t ‘proper blockchains’

These weren’t ‘cryptocurrencies’ and so could evade the interests of established ‘financial services’ state machinery.

The new number for all ERC protocols is now homogenized in ERC 419.                        A little later, someone resurrected the ‘Yahoo Boy’ off Solana

Airdrops abounded to create fever pitch.

Purchasers’ behaviour had positive curiosity in the early days of Cryptopunks, but post ‘Bored Ape’, the pace of dumping frenzy began to match that of the ERC 20 phenomenon. By the time of ‘Pudgy Penguin’ things are beyond a joke.

There is no ‘community’ here, or no ‘collecting’ going on in the normal sense of the word.

Where in the world can you profit from ‘consumption’ behaviour?

Product community DOES NOT EXIST. Not even in mainstream social media activity. Just transients jumping from one brief echo chamber to another.

Go to any event about ‘Web 3’ and find someone who has sole enthusiasm with tunnel focus about just one specific Web3 product as Michael Saylor is about Bitcoin.

An individual not involved in building the product or owning the project, but an ambassador everywhere they go.

Someone who has branded their Persona with this one specific Web 3 product as a die hard football fan does with their team.

This person does not exist.

And if a collection of such people can’t exist, then no ‘Web 3 product Community’ exists.

So called (post product launch) community is invisible in open spaces. Only fake echo chambers exist.

Where then, do you build your community? If ‘Repeat Business’ and ‘Customer Continuity’ are unattainable, why on earth would you build it among flippers (cough) users?

Nobody needs a bot driven ramp that can’t last the life of a candle.

Corrales Cachola describes it a bit differently – ‘web3 communities have it backward — they build a finished product first (i.e., an NFT) and then use the community to hype the product to force it on the market’

We believe you build community pre-product, not post product, and make community integral to ‘growth and innovation’.

At 9ja Cosmos we have a small community active on Handshake and GitHub is where innovation has roots.

REAL (pre-product) community managers don’t seem to exist though

At 9ja Cosmos , we are not interested in creating airdrop incentives for flippers.  We are more interested in building quality, improving the decentralization component, and creating ‘uncommonness’, while adding innovation.

Some think we have no interest in ‘Community’. This is not true. But we want to see a new type of ‘Community’ emerging. A pre-product/pre-market community.

Only those who feel they were part of the evolution will feel personally invested in the outcome.

Information Security And Digital Forensics at Tekedia Mini-MBA

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More fintech companies are collapsing in Africa due to cyber attacks, KYC and privacy issues than any other problem. This means that understanding cybersecurity is very important for business leaders and managers.

Join us as we discuss information security and digital forensics at Tekedia Institute. This is a very important course in Tekedia Mini-MBA as we understand the importance of digital security in the age of digitization.

Our Faculty, Dr. Francis Nwebonyi, before he moved to the academia world was securing the integrity of autonomous vehicles for BMW Group’s future diving machines. He is an IAM Engineer (Identity and Access Management Engineer) and holds a PhD in Computer Science with focus on Network and Information Security from Universidade do Porto. An exponential geek and a brilliant educator, he is a zen-master in this game.

Sat, Sept 28 | 7pm-8pm WAT | Information Security And Digital Forensics – Dr. Francis Nwebonyi, Bath Spa University |

Join us at the best school here.

The SAB121 Act and the U.S. Legislative Response

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In recent developments, the U.S. legislative bodies have taken a significant stance on the Staff Accounting Bulletin No. 121 (SAB 121), issued by the Securities and Exchange Commission (SEC). This bulletin, which had implications for the treatment of digital assets by financial institutions, has been the subject of much debate and legislative action.

The House of Representatives passed H.J.Res. 109 with bipartisan support, aiming to overturn the SEC’s SAB 121 under the Congressional Review Act (CRA). This resolution was introduced by Representative Mike Flood and garnered support from both sides of the aisle. The primary concern addressed by the resolution was the requirement for financial institutions and firms safeguarding their customers’ digital assets to hold those assets on their balance sheet. Critics argued that this was cost-prohibitive and hindered the ability of highly regulated financial institutions to act as custodians of digital assets.

The bipartisan resolution ensures consumer protection by removing these roadblocks, allowing consumers to hold their digital assets through highly regulated banks and other financial institutions. This move was seen as a step towards bringing commonsense into digital asset policy and was applauded by various stakeholders in the financial sector.

Here are the main points:

Recognition of Digital Assets and Liabilities: SAB 121 requires entities that control digital assets owned by another entity or individual to recognize these digital assets and a corresponding liability on their balance sheets.

Evaluation of Liabilities: The liability recognized under SAB 121 is evaluated under ASC 815 to determine if it includes a derivative.

Measurement of Liabilities and Assets: The liability for the obligation to safeguard the digital assets is measured initially and subsequently at the fair value of the safeguarded digital assets. The safeguarding asset is measured similarly but adjusted for any potential loss events.

Disclosure Requirements: Entities must disclose the nature and amount of crypto assets they are responsible for safeguarding for their customers.

These provisions aim to address the unique risks and uncertainties present in custodial arrangements for digital assets, ensuring that entities reflect the fair value of these assets and the associated obligations on their balance sheets. This guidance is applicable to financial statements prepared under both US GAAP and IFRS Accounting Standards.

Furthermore, the Senate took action by voting to pass H.J. Res 109, reflecting bipartisan support against the SEC’s crypto policy. This legislative action underscores the ongoing debate around the regulation of digital assets and the role of traditional financial institutions in this emerging field.

The legislative response to SAB 121 is a clear indication of the U.S. government’s commitment to creating a regulatory environment that fosters innovation while ensuring consumer protection. It also highlights the importance of dialogue and collaboration between regulators, legislators, and industry stakeholders to address the complexities of digital asset custody and management. It also underscores the role of Congress in serving as a check on regulatory overreach, ensuring that any rules or bulletins that have significant implications undergo thorough review and public commentary.

The collaborative effort between members of both the House and Senate demonstrates a proactive approach to digital asset policy, aiming to protect consumers while enabling highly regulated financial institutions to provide secure custody services. This move is a positive step towards establishing the United States as a leader in the digital economy, encouraging innovation, and providing a stable environment for the burgeoning industry of digital assets.