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Why safaricom must reduce its costs and expenditures to remain a viable stock in future
Rank: Elder Joined: 11/7/2007 Posts: 2,182
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now there 3G has been crap of late let them die a slow death and i will do the funeral. LOVE WHAT YOU DO, DO WHAT YOU LOVE.
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Rank: Elder Joined: 11/13/2008 Posts: 1,565
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Mpenzi wrote:@Djinn
Perception is crucial in matters of govt subsidies. Uchumi was subsidized and kept alive by the government mostly becoz of public sentiment that it was 'ours' and shouldnt be let to die. We could as well as let it die and have Nakumatt, Tuskys etc rule the roost. I dont think Telkom Kenya inspires the same kind of public sentiment and it would be much harder to convince govt to sink in more money into the entity, particularly because Telkom appears so rudderless and with no game plan. @Mpenzi, the telecom sector is a different ball game in many respects. In this instance we have to consider 1)the foreign investor 2)the government's role in the whole saga. With Uchumi its really bad management, the expansion strategy and staffing issue that run it into the ground...should we say, that because that happened, we should let this also happen? Can we not become more transparent, more accountable, more progressive? I think Telkom can be a viable venture...it just needs time. Aside from Orange GSM, it controls a considerable backhaul network (which is even used by other mobile and data operators), it has run fibre from Mombasa to Busia and will manage the government built national fibre network. But the mobile element is integral to its revenue base.
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Rank: Elder Joined: 11/13/2008 Posts: 1,565
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If I may, for a brief moment change sides, I think Telkom also needs to shed some staff who still have the old school kind of attittude...I have dealt with them and when you get there its like you are in a government office...receptionist chatting away with a messenger while the phone rings, people always late for meeting or not showing up at all, etc etc...I think there might still be some "god fathering" of positions there (nepotism). If they can fix that and hire real pros who can develop counter strategies...
lets not throw the baby out with the bath water.
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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I think it does not matter which telco wins the moble wars. What matters is that prices stay as they are. If it results in job losses and retrenchment, so be it. There is a limit to the level of exploitation the consumer should tolerate, and we have all seen we have been exploited enough. Let them fight, who cares who wins, but let us never pay more than 3/= a minute no matter what. Business opportunities are like buses,there's always another one coming
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Rank: Chief Joined: 1/3/2007 Posts: 18,349 Location: Nairobi
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@Djinn - If Telkom Kenya 'failed' I am sure Safaricom or Airtel or many others would happily buy out the Internet Fibre & backhaul they have/own... Heck, even KPLC has fibre from Mombasa to Nairobi & can easily extend it to most towns within 2 years!!! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 3/10/2008 Posts: 68
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Wendz wrote:selah wrote:why is everybody quoting the 8/= everytime saf is mentioned at those rates Yu was the cheapest at 6.50 while Zain was @ 8/= before going to 7.50/-and finaly to 6/= so when you commend zain remember the pple who made calling cheap is YU(Essar) our liberator. I think when MJ said we have peculiar calling habits he was right. We are screaming hoarse of how we were exploited by Safcom when all other providers were cheaper and we did not vuka. As we speak, we are all praises to Zain for lower rates and completely ignoring YU which is on its knees pleading with us to give it a chance to allow us to call to any network for 50 cents....... and we arent even seeing that. If you are not in YU, then stop talking of switching providers because you were exploited.... then one you have now is also exploiting (bearing in mind exploitation is relative). zain did the the magic of pulling the wool from our eyes. thats why we bow to them
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Rank: Elder Joined: 11/13/2008 Posts: 1,565
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KulaRaha wrote:
There is a limit to the level of exploitation the consumer should tolerate, and we have all seen we have been exploited enough.
Let them fight, who cares who wins, but let us never pay more than 3/= a minute no matter what.
@KulaRaha - THIS I agree with 100%...and this is why a while ago there was talk of dominant operators...I think the main exploitation and abuse of its dominance has been by SCOM...CCK has tried to manage this but there are too many powers at play...SCOM with a 80% share had most of its OWN traffic terminating in its own network and very little to other networks, while their networks also had considerable traffic it its network...its a bit hard to map out in words but that dominance precluded any operator from gaining a good foothold....lets remember this is an operator that has been providing mediocre services and still posting obscene profits... If the Herfindahl Index (http://en.wikipedia.org/wiki/Herfindahl_index) were used to measure the competitiveness of the Kenya market and its players, I'm sure SCOM will be pronounced as a dominant player (BTW I am no economist)
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Rank: Elder Joined: 11/13/2008 Posts: 1,565
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VituVingiSana wrote:@Djinn - If Telkom Kenya 'failed' I am sure Safaricom or Airtel or many others would happily buy out the Internet Fibre & backhaul they have/own...
Heck, even KPLC has fibre from Mombasa to Nairobi & can easily extend it to most towns within 2 years!!! Sorry, this cannot happen....it will go against the spirit of liberalisation. Let me quickly give an example of something going on currently in Nigeria - the state owned operator, after several botched privatisations, now wants to sell off the operator in bits - the mobile division, satellite, VSAT, etc etc....MTN, Zain, Glo and Etisalat are NOT eligible to bid... see http://www.itnewsafrica.com/?p=5203
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Rank: Chief Joined: 1/3/2007 Posts: 18,349 Location: Nairobi
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Djinn wrote:[quote=VituVingiSana]@Djinn - If Telkom Kenya 'failed' I am sure Safaricom or Airtel or many others would happily buy out the Internet Fibre & backhaul they have/own...
Heck, even KPLC has fibre from Mombasa to Nairobi & can easily extend it to most towns within 2 years!!! Sorry, this cannot happen....it will go against the spirit of liberalisation. Let me quickly give an example of something going on currently in Nigeria - the state owned operator, after several botched privatisations, now wants to sell off the operator in bits - the mobile division, satellite, VSAT, etc etc....MTN, Zain, Glo and Etisalat are NOT eligible to bid... see http://www.itnewsafrica.com/?p=5203[/quote]Fine, then someone else... I am sure there are MANY firms that will happily pick up the pieces of Telkom at the right price especially the internet backbone! There is Zuku, Tangerine, AccessKenya, YU... Maybe even KPLC... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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sheep wrote:I dont think they will...I believe the french government will put a lot of pressure on GOK....If u study french business models in africa you would really hate them...telkom will try its best to hoard data bandwith and frustrate efforts for affordable internet @ sheep its a rude awakening for the west. The money now rises in the east...many traditional western corporations have been bought off by the indians and chinese. Refer to Tata's expansionist acquisitions, lenovo's purchase of IBM, China's oil, gas and construction. The only thing going for western powers are the concessions they hold in their former colonies eg the tea, coffee, rubber, cocoa, sugarcane farmlands in africa and south america, metal and precious stones mines in africa, australia, canada and south america. Then there is STOLEN OIL, this has become the USA's speciality. The west simply cannot compete on a level economic field and their only recourse is war and intimidation. Life is short. Live passionately.
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