Term Paper Managerial Economics
PAPER ON EFFECTS OF MARKET STRUCTURE OF AN INDUSTRY ON THE CONDUCT AND PERFORMANCE OF A FIRM
This paper provides an overview of telecommunications industry in Kenya and discusses how structure of the industry can affect the conduct of a firm within an industry and also explores how market structure and conduct of the firm affect the firm’s performance. It also offers some ideas regarding the future of the telecommunications sector in Kenya.
Introduction
Kenya 's earliest telecommunications connections to the outside world were the submarine cables linking Zanzibar, Mombasa, and Dar es Salaam laid by the Eastern & South African Telegraph Company in 1888. Internally, the construction of a telegraph net work began with a 200-mile coastal line linking the port city of Mombasa with Lamu. Extension into the interior of the country began in 1896 in conjunction with the building of the railway system, forming a dual "backbone" for Kenya 's communications infrastructure. The extension of the telegraph line even overtook railway construction, reaching Nairobi in 1898 and Kampala and Entebbe in Uganda in 1900. Telephone service soon followed. In 1908, the public telephone network began service in Nairobi, the capital, and in Mombasa. In Nairobi that year, eighteen telephone subscribers were connected.
In the 1980s, growth of Kenya 's network occurred on a larger scale. KP&TC undertook three telecommunications development programs: the First Program ran from 1979 to 1983; the Second Program began in 1984 and was completed in 1988; and World Bank funding for the Third Program was negotiated in 1985-86, with disbursements beginning in 1987 and completion achieved in 1992.
The First Program called for the addition of 58,800 exchange lines of capacity, a 60% increase over the system capacity available at the end of 1979. It also called for the provision of public telephones in two hundred previously unserved locations, urban and rural.
The Second Program stressed the
This paper provides an overview of telecommunications industry in Kenya and discusses how structure of the industry can affect the conduct of a firm within an industry and also explores how market structure and conduct of the firm affect the firm’s performance. It also offers some ideas regarding the future of the telecommunications sector in Kenya.
Introduction
Kenya 's earliest telecommunications connections to the outside world were the submarine cables linking Zanzibar, Mombasa, and Dar es Salaam laid by the Eastern & South African Telegraph Company in 1888. Internally, the construction of a telegraph net work began with a 200-mile coastal line linking the port city of Mombasa with Lamu. Extension into the interior of the country began in 1896 in conjunction with the building of the railway system, forming a dual "backbone" for Kenya 's communications infrastructure. The extension of the telegraph line even overtook railway construction, reaching Nairobi in 1898 and Kampala and Entebbe in Uganda in 1900. Telephone service soon followed. In 1908, the public telephone network began service in Nairobi, the capital, and in Mombasa. In Nairobi that year, eighteen telephone subscribers were connected.
In the 1980s, growth of Kenya 's network occurred on a larger scale. KP&TC undertook three telecommunications development programs: the First Program ran from 1979 to 1983; the Second Program began in 1984 and was completed in 1988; and World Bank funding for the Third Program was negotiated in 1985-86, with disbursements beginning in 1987 and completion achieved in 1992.
The First Program called for the addition of 58,800 exchange lines of capacity, a 60% increase over the system capacity available at the end of 1979. It also called for the provision of public telephones in two hundred previously unserved locations, urban and rural.
The Second Program stressed the
References: Kenya Post and Telecommunications Corporation. Annual Reports and Accounts. Nairobi, Kenya, 1990. Telecommunications Union, Yearbook of Common Carrier Telecommunication Statistics. 21st edition. Geneva: International Telecommunications Union, 1994. Kenya National Assembly Official Record (Hansard) 15th November 2006 Business Daily Thursday 30th June, 2011 ‘Corporate News’ Ministry of Information and Communications Strategic Plan 2006- 2010. Kenya’s Information and Communications Technology Sector Report 2005 Kenya Communication Act 1998 Kenya Information and Communications Technology (ICT) Sector Profile by EPZA www.cck.go.ke