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Safcom on a dive, whats going on?
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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sheep wrote:If this thing goes below 5 it will drag the index down with it. @sheep i beg to disagree.. The bull is alive... Safcom fell more than 5% on friday but the index barely fell 0.1% but i don't deny it will have a small effect.... Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 5/26/2009 Posts: 1,793
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sparkly wrote:Those who have moved to zain should burn their safaricom lines... lol...I second that...just as a show of solidarity with low prices...and I foresee people switching off their phones to avoid bother, as communication degenerate from important matters to gossip...and NO this is not doom prophecy.
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Rank: Elder Joined: 7/21/2010 Posts: 6,194 Location: nairobi
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There is no sector without competion in our economy and safcom will remain profitable,from 21b we cant crush to losses,dont you think even if safcom profit was 10 or even 7b this is still good earnings?. "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Chief Joined: 1/3/2007 Posts: 18,349 Location: Nairobi
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No more excuses for people to 'flash' me... I used to call back from Zain (when it was 6/-)... Now I sms them (@ 1/-) to get a Zain line!!! I have had a Zain line for ages... I also keep a Safaricon line but pole pole I have stopped using it... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: User Joined: 5/9/2010 Posts: 1,418 Location: Nai
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What is happening is that scom is beign repriced w/ the low calls regime in place. Your future depends on your dreams so go to sleep !
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Rank: Elder Joined: 9/12/2006 Posts: 1,554
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the deal wrote:This is all noise...unless someone comes up with the numbers saying SCOM has lost 20% of its market share then we Scom Shareholders should be concerned...btwn SCOM will announce their H1 numbers in 2 month time...i agree with AKS who said this is just an 'overreaction'.... All mobile operators monitor thier air time sales and new subs to thier networks by the hour. MJ and Meza receive these reports by sms from thier NOC teams every 4 or so hours, and they may increase the receiving frequency. does anyone think that MJ will just be looking at the numbers decrease and not take action? infact i tend to think he might be seeing increases in revenue for now through interconnect and he wants to maintain it that way.... indeed it is an over reaction
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Rank: Elder Joined: 2/10/2007 Posts: 1,587
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Jamani wrote:the deal wrote:This is all noise...unless someone comes up with the numbers saying SCOM has lost 20% of its market share then we Scom Shareholders should be concerned...btwn SCOM will announce their H1 numbers in 2 month time...i agree with AKS who said this is just an 'overreaction'.... All mobile operators monitor thier air time sales and new subs to thier networks by the hour. MJ and Meza receive these reports by sms from thier NOC teams every 4 or so hours, and they may increase the receiving frequency. does anyone think that MJ will just be looking at the numbers decrease and not take action? infact i tend to think he might be seeing increases in revenue for now through interconnect and he wants to maintain it that way.... indeed it is an over reaction Yes, but the reaction might come a little too late. Remember the days when Zain, then Kencell used to charge per minutes costs irresective whether you talk for 1 sec or 60 secs. Safcom used the opportunity and Zain has never been able to catch up. The war chest that Airtel has is no joke pals.
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Rank: Elder Joined: 9/12/2006 Posts: 1,554
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PKoli wrote:Jamani wrote:the deal wrote:This is all noise...unless someone comes up with the numbers saying SCOM has lost 20% of its market share then we Scom Shareholders should be concerned...btwn SCOM will announce their H1 numbers in 2 month time...i agree with AKS who said this is just an 'overreaction'.... All mobile operators monitor thier air time sales and new subs to thier networks by the hour. MJ and Meza receive these reports by sms from thier NOC teams every 4 or so hours, and they may increase the receiving frequency. does anyone think that MJ will just be looking at the numbers decrease and not take action? infact i tend to think he might be seeing increases in revenue for now through interconnect and he wants to maintain it that way.... indeed it is an over reaction Yes, but the reaction might come a little too late. Remember the days when Zain, then Kencell used to charge per minutes costs irresective whether you talk for 1 sec or 60 secs. Safcom used the opportunity and Zain has never been able to catch up. The war chest that Airtel has is no joke pals. @PK, The position Kencell had taken at that time was to sell the service to high class, they never gave a serious thought to install BTS-s in the lower part of nairobi, so then they stuck to thier guns on per minute and numbers where climbing none of thier upper market clients was leaving so their numbers seem ok, until they got to see numbers in safcom, thats when they decided on a trial basis to install a bts in Kariobangi and guess what on day one the network resources where doubled. Back to our story, the strategy Kencell took was a wrong one and you cannot compare the two, here we have a case where CCK has lowered the interconnect price and one company has reacted fast to lower its prices, the other is still studying to come up with sustainable business rates and respond by 1st of september
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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Jamani wrote:PKoli wrote:Jamani wrote:the deal wrote:This is all noise...unless someone comes up with the numbers saying SCOM has lost 20% of its market share then we Scom Shareholders should be concerned...btwn SCOM will announce their H1 numbers in 2 month time...i agree with AKS who said this is just an 'overreaction'.... All mobile operators monitor thier air time sales and new subs to thier networks by the hour. MJ and Meza receive these reports by sms from thier NOC teams every 4 or so hours, and they may increase the receiving frequency. does anyone think that MJ will just be looking at the numbers decrease and not take action? infact i tend to think he might be seeing increases in revenue for now through interconnect and he wants to maintain it that way.... indeed it is an over reaction Yes, but the reaction might come a little too late. Remember the days when Zain, then Kencell used to charge per minutes costs irresective whether you talk for 1 sec or 60 secs. Safcom used the opportunity and Zain has never been able to catch up. The war chest that Airtel has is no joke pals. @PK, The position Kencell had taken at that time was to sell the service to high class, they never gave a serious thought to install BTS-s in the lower part of nairobi, so then they stuck to thier guns on per minute and numbers where climbing none of thier upper market clients was leaving so their numbers seem ok, until they got to see numbers in safcom, thats when they decided on a trial basis to install a bts in Kariobangi and guess what on day one the network resources where doubled. Back to our story, the strategy Kencell took was a wrong one and you cannot compare the two, here we have a case where CCK has lowered the interconnect price and one company has reacted fast to lower its prices, the other is still studying to come up with sustainable business rates and respond by 1st of september Whatever their response safcoms revenue, profit, and share price is headed lower. Mark 12:29
Deuteronomy 4:16
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Rank: Member Joined: 5/13/2008 Posts: 558
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The contest here is between the mighty Idians and the arrogant Brits. In the recent past, indians are outsmarting the brits in many businesses. Eg. In india, Bharti Airtel is the leading mobile phone company with 137 Million subscibers. Vodaphone is ranked 3rd with 80 Million.
Though the contest is in a different wavelength in kenya, kenyan market is and has always been unique. The mighty SAB Millers were humbled in kenya. My bet is these indians will be humbled too. Even if they have big/deep pokets like slim helu, they cannot sustain the pricing strategy that they have adopted in the longterm.
Assuming that safcom can afford to loose 10% of marketshare as a result of the price wars and still maintain current pricing, indians will still have a long way to go to achieve any profits.
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