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Why safaricom must reduce its costs and expenditures to remain a viable stock in future
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sparkly
#131 Posted : Saturday, September 11, 2010 11:56:45 AM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
Vibrant debate on the death and burial of telkom. With due respect the govt of kenya (tax payers) sold a sound business with viable assets to the french. They were not the only buyers, they did their due diligence, we pocketed the cash, they have the business and assets but no ideas. Should the butcher sell you a good piece of meat then follow you home to show you how to cook it? These guys have failed in their role as strategic investor.
Life is short. Live passionately.
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VituVingiSana
#132 Posted : Monday, September 13, 2010 1:46:12 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,349
Location: Nairobi
No matter how you slice & dice it... unless Safaricom sells a lot of data... the margins will drop like a rock coz of Zain's offer of 3/- to any network...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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2012
#133 Posted : Monday, September 13, 2010 2:01:36 PM
Rank: Elder

Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
gmg wrote:
average calling rates was ksh 8 per minute so we can say a total talk tome for that year was 8 billion minutes.
2. At the current price 8 billion minutes would result into a maximum revenue of ksh 24 billion(assuming calling rates of ksh 3)


On this you need to also consider that with the reduced prices the talk time minutes will automatically go up from 8 billion to double that or more...

BBI will solve it :)
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KulaRaha
#134 Posted : Monday, September 13, 2010 2:21:44 PM
Rank: Elder

Joined: 7/26/2007
Posts: 6,514
2012 wrote:
gmg wrote:
average calling rates was ksh 8 per minute so we can say a total talk tome for that year was 8 billion minutes.
2. At the current price 8 billion minutes would result into a maximum revenue of ksh 24 billion(assuming calling rates of ksh 3)


On this you need to also consider that with the reduced prices the talk time minutes will automatically go up from 8 billion to double that or more...


If that was true, why are scratchcard dealers shedding tears?
Business opportunities are like buses,there's always another one coming
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2012
#135 Posted : Monday, September 13, 2010 2:25:34 PM
Rank: Elder

Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
KulaRaha wrote:
2012 wrote:
gmg wrote:
average calling rates was ksh 8 per minute so we can say a total talk tome for that year was 8 billion minutes.
2. At the current price 8 billion minutes would result into a maximum revenue of ksh 24 billion(assuming calling rates of ksh 3)


On this you need to also consider that with the reduced prices the talk time minutes will automatically go up from 8 billion to double that or more...


If that was true, why are scratchcard dealers shedding tears?


Maybe it's because their commissions were also reduced?

BBI will solve it :)
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Njung'e
#136 Posted : Monday, September 13, 2010 2:32:19 PM
Rank: Elder

Joined: 2/7/2007
Posts: 11,935
Location: Nairobi
@2012,
And i read somewhere that,according to a survey done by Consumer Insight,talk time has not gone up one heck of a nano-second.
Nothing great was ever achieved without enthusiasm.
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selah
#137 Posted : Monday, September 13, 2010 2:36:16 PM
Rank: Elder

Joined: 10/13/2009
Posts: 1,950
Location: in kenya
Safaricom will definitely loose some of its market share as well as a drop on its revenues and followed by an increase in operational cost (esp in advertising.

I hear they are about to launch a masaa ya SMS tarrif which will be permanent.
'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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Njung'e
#138 Posted : Monday, September 13, 2010 2:40:46 PM
Rank: Elder

Joined: 2/7/2007
Posts: 11,935
Location: Nairobi
@2012,
Forward thinking.Burying heads in the sand like the proverbial ostritch is nothing but suicide.

http://www.businessdaily...em/1/-/erxe/-/index.html
Nothing great was ever achieved without enthusiasm.
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KulaRaha
#139 Posted : Monday, September 13, 2010 2:41:12 PM
Rank: Elder

Joined: 7/26/2007
Posts: 6,514
2012 wrote:
KulaRaha wrote:
2012 wrote:
gmg wrote:
average calling rates was ksh 8 per minute so we can say a total talk tome for that year was 8 billion minutes.
2. At the current price 8 billion minutes would result into a maximum revenue of ksh 24 billion(assuming calling rates of ksh 3)


On this you need to also consider that with the reduced prices the talk time minutes will automatically go up from 8 billion to double that or more...


If that was true, why are scratchcard dealers shedding tears?


Maybe it's because their commissions were also reduced?


Really? How much?
Business opportunities are like buses,there's always another one coming
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KenyanLyrics
#140 Posted : Monday, September 13, 2010 7:34:53 PM
Rank: Veteran

Joined: 4/16/2010
Posts: 906
Location: Nairobi
My prediction is coming true. I told people that Safaricom are going to expand Masaa ya Kubamba slowly by slowly till Zain break their 3 bob forever promise. Today's announcement: Masaa ya Kubamba extended to SMS. Terms and conditions apply of course :)
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