An study by market analysts, Analysys Mason,has found evidence of the club effect in Kenya's telecom industry.The study was commissioned by Communication Commission of Kenya.
According to Analysis Mason, the club effect is forcing new consumers to subscribe to a network which has a large market share, otherwise they risk higher calling charges.
Subscribers are locked in to an operator with a higher market share because they can receive or make calls to a large group of subscribers at low prices.
Therefore club effect confines consumers to the operator with the highest market share even if other operators have better deals.
If this report is implemented, then CCK may introduce measures to control and monitor market dominance in the the telecom industry.
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