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Safaricon the most EXPENSIVE provider
Rank: Member Joined: 7/31/2007 Posts: 341
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Rank: Elder Joined: 5/26/2009 Posts: 1,793
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>> as Zain will soon find out, they won't win the market through price competition rather through innovative creativity. They should learn from how safaricom won the market from Kencell and stop acting like there can be no more innovation in the industry...like safaricom has exhausted innovation avenues. Finally, If i was a shareholder in Zain, i would sell the shares right away.
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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A line is 20/- so you just maintain a safcom line where everyone can reach you, and another one to call with depending on the fad of the day. Could be yu, orange, zain. When it's out of fashion just dump and get another 20/- sim Life is short. Live passionately.
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Rank: Member Joined: 5/2/2007 Posts: 536
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tuvok wrote:tuvok wrote:maka wrote:Question still remains is the move by zain sustainable having in mind that inter connectivity rate still remains at 4.22,I think scom should concentrate more on data where they have the upper hand. 2.21 is the new interconnect charge Just been thinking about it. e.g at 3 bob a minute across networks, how long do you think the typical phone call now lasts. 2.21 interconnect Retain 7.79 and of this pay KRA its dues. It might just be sustaining. Oops it's 2.21 per minute interconnect.. Their margins per minute are very small.
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Rank: New-farer Joined: 1/4/2010 Posts: 93
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@Kenmac;
You still want to pay 8 bob per minute. Kenyans are strange people, they complain services are expensive, when they are given a cheaper alternative, they start analyzing it and lecturing us on the economics of the whole thing. Who cares how they make their money as long as they give us quality services.
We can still develop more products and still pay 3 bob per minute. If we do not support Zain in their new move, we will remain in SafCON caves forever, get out and do something, kwani MPESA is a matter of life and death and even if it was we will die one day anyway. Learn to live one day at a time coz you do not know about tomorrow.
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Rank: Member Joined: 1/8/2009 Posts: 67
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It is likely that even if there was another network charging even higher than Safaricom, it would still have subscribers. Price is a major factor but not the only factor. For a long time, Zain has been cheaper than Safaricom. Heck, I think Yu was even cheaper.
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Rank: New-farer Joined: 5/23/2010 Posts: 95 Location: Tikrit - IRAQ
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and YU is following suit by midday today . . . . .wah wah lets go the indian way . . . .kalls .@ 2cents a minute. Ni time yetu. ...We do it for the $$$$!!
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Rank: Member Joined: 5/2/2007 Posts: 536
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qadaffi wrote:It is likely that even if there was another network charging even higher than Safaricom, it would still have subscribers. Price is a major factor but not the only factor. For a long time, Zain has been cheaper than Safaricom. Heck, I think Yu was even cheaper. True, there's several factors, like access to agents, money transfer, data, But consider the (majority of?) kenyans living on < $1.20 a day. I suppose moving to Zain is not rocket science for them. I'm also not sure that Yu was country wide
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Rank: Elder Joined: 7/22/2009 Posts: 7,452
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3/= to ANY network. That's 10 nil!!! What YU and Orange had done is keep call charges within the network low but calls to other networks [read Safcom] were still high. When 90%+ of the people you call are on Safcom, such offers did not make much sense. But if now you can all those 90%+ [And all the rest] at 3/=, what other incentive do you need? These is what we call in chess, check [almost check mate!]. Safcom have only one move left. Lower Safcom - Safcom calls to <= 2/=. Otherwise it's game over. Safcom lines will be "receiving" lines. Almost all calls will originate from Zain. And when Zain gets at least 50% market share, they will increase the charges to "other networks" and probably lower Zain - Zain call charges even further. And as they say, "Game short"!. Safcon have a two week period to react. If they don't, it might be the end of Safcon as we know it. You can quote me on this! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Member Joined: 1/8/2009 Posts: 67
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@tuvok, your point on Yu coverage is in deed valid.
@MaichBlack, your analysis on how the likes of Orange and Yu had kept their on-net calls cheap and how Zain's new approach varies from that is equally valid. True off-net at 3/- is a killer.
Zain has made a first-move and come out looking quite the mindful business that wants to pass off the benefits of lower interconnection to the ordinary mwananchi and this is music to the ears of subscribers.
I wonder what will happen when Orange and Yu have country-wide coverage as well.
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Rank: Veteran Joined: 10/17/2008 Posts: 1,234
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Clearly is there anything to analyse here? Just use Zain and when Safcon lowers its charges to 1 bob per min, then we troop back there. But without question Safcon's bottomline will take a big hit - no more profits of 20B and over at least in the foreseable future.
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Rank: Elder Joined: 6/19/2008 Posts: 4,268
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@kivairu
I quite agree with you. Why have we been stuck with safaricom even when vuka was all so alive? well, its not because of cheap tariffs. we all agree that sufferincon is the most expensive, but their innovative services and products are what keeps us glued.
When people 'vukad'.... dint they do that with one leg suffering..... and when the excitement of 'pinky pastures' fizzled out, they were happily back suffering... with us... LOL... but the temptation is too much....
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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Mpenzi wrote:But without question Safcon's bottomline will take a big hit - no more profits of 20B and over at least in the foreseable future. @mpenzi you must be joking/dreaming. Safaricom will record more than 12billion profit for H1 and 25billion for full year Mark 12:29
Deuteronomy 4:16
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Rank: New-farer Joined: 6/29/2010 Posts: 56 Location: Nairobi
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i think some wazuans work with safcom or are part of mobitelea. I can fathom how someone can bash the cheaper calling tarriff from zain and cont praising safcom. thats just beyond me. Innovative products, waht does that mean anyway? what does saf have as service that zain doesnt. but as i said earlier, its a free country. U can choose green or red, but again we jua where the majority are on this. Most of the people i jua have ditched safcom and are in zain officially, what more prooff do i need that safcom is losing badly on this one.
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Rank: Veteran Joined: 6/2/2010 Posts: 1,066
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komera wrote:i think some wazuans work with safcom or are part of mobitelea. I can fathom how someone can bash the cheaper calling tarriff from zain and cont praising safcom. thats just beyond me. Innovative products, waht does that mean anyway? what does saf have as service that zain doesnt. but as i said earlier, its a free country. U can choose green or red, but again we jua where the majority are on this. Most of the people i jua have ditched safcom and are in zain officially, what more prooff do i need that safcom is losing badly on this one. You got it wrong, they are not employees of safcom THEY ARE OWNERS!!!!!!!!! Read; Shareholders. Why make some foreigners some money when I can make me some money???????????????????????????????????????????????????????????????????????????
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Rank: Veteran Joined: 11/2/2006 Posts: 1,206 Location: Nairobi
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My2cents........how many shares do you have? You might be shocked to discover that the dividend you get from those Safcom shares is 20% of what your monthly phone bill is using the expensive Safcom....! Kenyans are indeed peculiar! Formally employed people often live their employers' dream & forget about their own.
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Rank: Elder Joined: 10/23/2009 Posts: 2,375
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My 2 cents wrote:komera wrote:i think some wazuans work with safcom or are part of mobitelea. I can fathom how someone can bash the cheaper calling tarriff from zain and cont praising safcom. thats just beyond me. Innovative products, waht does that mean anyway? what does saf have as service that zain doesnt. but as i said earlier, its a free country. U can choose green or red, but again we jua where the majority are on this. Most of the people i jua have ditched safcom and are in zain officially, what more prooff do i need that safcom is losing badly on this one. You got it wrong, they are not employees of safcom THEY ARE OWNERS!!!!!!!!! Read; Shareholders. Why make some foreigners some money when I can make me some money??????????????????????????????????????????????????????????????????????????? OWNERS MY FOOT!!!TELL IT TO THE BIRDS.Majority of the Safcon profits are repatriated to Vodaphone somewhere in UK. It is better to keep your mouth closed and let people think you are a fool than to open it and remove all doubt...
-Mark Twain
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Rank: Elder Joined: 2/7/2007 Posts: 11,935 Location: Nairobi
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@My2cents, OWNERs???....My matina!.....@10,000 shares of Sufferin'com is equal to ownership??....whats in it?5cents dividend???....CRAP!! @Chris/Kadonye, I stand to be collected....Pumbavu!...  Nothing great was ever achieved without enthusiasm.
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Rank: Veteran Joined: 11/2/2006 Posts: 1,206 Location: Nairobi
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@Njuge!Haha kweli kabisa! If one even had 20,000 shares...how much dividend is that?Na mtu wa aina hiyo....how much does he spend on expensive Safcom calls? The problem is people think with their hearts & eyes.... Formally employed people often live their employers' dream & forget about their own.
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Rank: New-farer Joined: 1/4/2010 Posts: 93
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@My2Cents;
@10 cents per share for divideds and you still tell us about shares and ownership. I shall not be cowed by these prophets of doom who think Zain and others cannot make it. It is your choice anyway, green,orange, purple or whatever. Please look for a book titled "Who moved my Cheese", its there in the net.
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