Hi all

i noted from here : http://www.nation.co.ke/...-/wnxn0ez/-/index.html, that the heated mobile phone price cutthroats might as well derail the implimentation of the new constitution...that is according to Bitange Ndomo.

i thought the constitution implementation was a separate entity not bearing any relationship with the telecommunications sector...unless, of course, Ndomo is telling us that the short fall in the KRAs revenue collection target was meant to fund all the consitution implementation processes vide financial obligations and activities and that the funds were to be generated by mobile telecomms companies!!!NKT

what is up your sleeve Ndomo??? could you come out clean!!

any comment wazuas??

Classical case of mixed priorities. Even if its true that the effect of the competition is to reduce tax revenue, does it follow that the constitution review process is the most dispensable item? How about not funding the Hague 2???

From Bitange, sad and disappointing. What crap.

@ aggra

the eabl and mobile telecomms firms contribution into exchequer is much less than 8% of the total annual revenue collection. if this contribution was entirely wiped out we don't expect that any of the government institutions and activities would collapse. infact they would just be marginally affected and not to the extent that the Ndomo guy is prophesying.

@ mlennyama

there is no way we can declare the prices to be un-sustainable on the basis of hearsy from the competitors. this is just cheap excuse for offering very cheap service very expensively.

The more the panic sell the better for a contra-buy. Below 4/- would be very interesting. If the safcom share can get as low as 3.50 before May announcement, the better and a big thanks to Airtel for forcing the share price lower ;-)

That "NDOMO" is just that,"ndomo!!"

@segemia, i don't want to become a wazua lecturer but smaller firms vs dominant firms (marginal means those making smaller amounts or margins or dealing with small groups), at the end of the day the easy way out is for safcom to cut it's price immediately as a response to small firms cutting theirs, why?
1. They have the volumes and majority prefer their services (which means those in smaller firms are there not by choice but by savings or number loyalty e.t.c, they may just switch to safcom)
2. With larger volumes, they will have better economies of scale and should cope with the reductions better.
Safaricom should respond to price cuts fastest, they need to forget about turning out huge profits in the short term, it may hurt them long term.

@Kularaha, I beg to differ, Ndemo is a brilliant chap no doubt about that. We should remember that his interests are those of his boss-GoK, it is in the best interest that treasury should reap as much as possible from the telecoms sector. As things stand, treasury will be the net loser.

I think bitange watched too much of that niko na safaricom advert.

Ati supporting safaricom is the same as supporting the new constitution.

But you have 4.7B to defend mass murderers...go sing it to the birds my friend, we don't buy this protectionism disguised as whining!!!