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Mobile price wars to derail new Constitution????
Jamani
#71 Posted : Sunday, January 23, 2011 12:33:15 PM
Rank: Elder

Joined: 9/12/2006
Posts: 1,554
jasonhill wrote:
All, firstly, "phone" as a technology is dead anyway. Data is what is important. And it doesn't take much data to make "voice calls". So any way that you slice it, the price of voice calls will inevitably crash. In 36 months Kenyans will be using internet-connected FREE voice-over IP calling over paid-for data almost exclusively. Skype anyone? MagicJack? Google Talk?

Secondly, the GoK knows that free markets are far more important than the performance of any one stock. If you start controlling prices too much, outside investors get scared, and you loose a lot more money than just the revenues on phone tariffs and shares held. Thirdly, for all the SafCom "worshippers": IT'S JUST A PHONE COMPANY!

And by global standards, not an exemplary one. They just can't seem to get their arms around the data market. Even Collymore seemed shocked at the amount of praised heaped upon SafCom and Mike Joseph by Kenyans, and seems shaken by cable vandalism. Cables? I wouldn't let vandals shake me at all. I'd fly way above their heads with microwave transmitters and WiMax. I'd bury the cable 30 feet deep if I had to. Or raise the fiber up on power-poles! I would let NOTHING stop me from winning the telecom war!

Does Bob want it bad enough???

I understand that SafCom was one of the first and few examples of its kind, but it's just the beginning. Many FULLY KENYAN enterprises are yet to be built, and soon.

The game has changed.

I disagree kidogo with you, the majority of kenyas will still be on voice due to cost of devices and other challenges, though you are right that voice calls will be impacted.... About the cables on power lines Kenyans even vandalise the power cables.... but yeah TKL, KDN and other cable guys should do better.. MW and Wimax will send the prices high due to frequency costs by CCK
erifloss
#72 Posted : Sunday, January 23, 2011 12:52:37 PM
Rank: Member

Joined: 6/21/2010
Posts: 514
Location: Nairobi
@Jamani, i tend to disagree with you in terms of access to devices actually safcom has started a war on that front by bringing data enabled phones at cheap prices (ideos, nokia). If you have 8 million subscribers & 3 million can afford data enabled phones, 1 million being able to afford Kshs. 100 a week worth of data for 52 weeks a year. That's a cool minimum 5.2 billion additional revenue a year, data is the next revenue growth stream for any telcom company & not calls....
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
Ali Baba
#73 Posted : Sunday, January 23, 2011 3:50:40 PM
Rank: Member

Joined: 8/29/2008
Posts: 573
ERIFLOSS: I also tend to disagree with you.Some subscribers can afford data and smartphones;but there are those who don't want to access it through phones like me.Call me old school but always give me my laptop.A phone is too small a device for me to strain my eyes while trying to read/post at Wazua...
erifloss
#74 Posted : Sunday, January 23, 2011 3:58:10 PM
Rank: Member

Joined: 6/21/2010
Posts: 514
Location: Nairobi
Ali Baba wrote:
ERIFLOSS: I also tend to disagree with you.Some subscribers can afford data and smartphones;but there are those who don't want to access it through phones like me.Call me old school but always give me my laptop.A phone is too small a device for me to strain my eyes while trying to read/post at Wazua...

True and that still indicates that the next frontier telecommuniactions is data!
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
jasonhill
#75 Posted : Sunday, January 23, 2011 10:33:54 PM
Rank: Member

Joined: 1/22/2011
Posts: 322
Location: Chicago, IL, USA
@Ali Baba, I think that we are talking about different things. Most people of course want to access the internet on a laptop- larger screen, and a keyboard. But they still want the convenience of having internet in their pocket- thus a smartphone. But what we are talking about here, is a smartphone that is simply a small computer with a Voice Over IP application that uses data, not "per-minute voice" services to transmit the audio of a phone call to and from the smartphone to any phone. Hence, there is no actual "phone" and no actual "phone call" taking place. It's computer-transmitted audio and even video! Now the program on the smartphone is properly dressed up to look and feel like a "phone" but in reality, that is just to make it easy to use.

The secret is this... that is what the telecoms are already doing. They are saving billions of shillings because they take your calls, turn them into data, and run the over the internet. That way, they can use any existing network, and not have to spend so much money on their own backhaul and interfacing with other network. They have been making tons of money off of consumers by not lowering rates a long time ago when they started taking advantage of this technology. It's like hopping in your neighbors trunk for a ride to work, for free, instead of driving and maintaining you own car. In fact, it's actually called IP trunking. And what I am talking about is individuals taking advantage of it by "trunking" their calls over their data connections, instead of over standard "phone", thus making calls virtually free as long as you have data access.
Jamani
#76 Posted : Monday, January 24, 2011 3:57:46 AM
Rank: Elder

Joined: 9/12/2006
Posts: 1,554
jasonhill wrote:
@Ali Baba, I think that we are talking about different things. Most people of course want to access the internet on a laptop- larger screen, and a keyboard. But they still want the convenience of having internet in their pocket- thus a smartphone. But what we are talking about here, is a smartphone that is simply a small computer with a Voice Over IP application that uses data, not "per-minute voice" services to transmit the audio of a phone call to and from the smartphone to any phone. Hence, there is no actual "phone" and no actual "phone call" taking place. It's computer-transmitted audio and even video! Now the program on the smartphone is properly dressed up to look and feel like a "phone" but in reality, that is just to make it easy to use.

The secret is this... that is what the telecoms are already doing. They are saving billions of shillings because they take your calls, turn them into data, and run the over the internet. That way, they can use any existing network, and not have to spend so much money on their own backhaul and interfacing with other network. They have been making tons of money off of consumers by not lowering rates a long time ago when they started taking advantage of this technology. It's like hopping in your neighbors trunk for a ride to work, for free, instead of driving and maintaining you own car. In fact, it's actually called IP trunking. And what I am talking about is individuals taking advantage of it by "trunking" their calls over their data connections, instead of over standard "phone", thus making calls virtually free as long as you have data access.

We agree with you however the cost of it for the majority of Kenyans is still prohibitive and thats why it will take along while before we are there
jasonhill
#77 Posted : Monday, January 24, 2011 5:48:58 AM
Rank: Member

Joined: 1/22/2011
Posts: 322
Location: Chicago, IL, USA
@Jamani, what if we gave it away for free?

Seriously, what if we gave away limited, low-bandwidth data access, just for casual browsing and calling, in exchange for displaying visual or audible advertisements. Do you think that's viable?

Imagine a Kenyan-developed smartphone app that lets you connect to WiFi hotspots around town for free, but you have to sit through a minute of advertising- a radio commercial- once a day. We sell the advertising to cover the costs. It would be like a giant internet cafe that made its money by selling ad space like billboards, television, and radio do. It may seem crazy, but it should be a lot cheaper than setting up a radio or TV station.

We could offer production of the spots as an incentive to advertise with us. We could use the recording studio I spoke of to record and edit the commercials.

Thoughts?
Layman
#78 Posted : Monday, January 24, 2011 7:51:17 AM
Rank: Member

Joined: 9/21/2006
Posts: 422
Location: Nairobi
Yu charges 25 cents per minute and no one is whinning. Yu levies 5bob daily then charges 25 cents per minute for yu-yu calls
KulaRaha
#79 Posted : Monday, January 24, 2011 8:53:14 AM
Rank: Elder

Joined: 7/26/2007
Posts: 6,514
Jamani wrote:

Extracts taken from KWAMCHETSI MAKOKHA

If just about anybody were to speak on the telephone for a shilling a minute, as has been decided by Bharti Airtel, Kenya would become the biggest chattering country outside a monkey house.
Companies that refuse to make money off voice calls and instead seek to sell a range of services and create relationships live in a bad country called Utopia. In such places, they even offer free calls.
This is what Airtel is trying to do in Kenya — turn this republic into a cheap unrealistic country where things are free.
Companies are formed solely to make profit in the shortest time possible. Those that sink money into Kenya and wait long periods to reap the gains are only using the country as a testing ground for cynical economic experiments.
Their irresponsible behaviour can force honest businesses that sue profit through the quickest route and reward their shareholders to cut costs. They would no longer have the largesse to edge out the beer manufacturers from television and newspaper advertising
And worse could follow. Some of the mobile phone operators would close, leading to massive unemployment – of up to 3,000 people for Safaricom. There would be a graduate at every closed shop corner the following evening, waiting to mug you
Cheapskates who want to enjoy top-of-the-range services are only keen on sending the economy into a coma. That is why Safaricom’s bosses would rather die than reduce the cost of calling to Sh1 a minute.






And after all that theorizing and lip service, and Bob's full blown panic and promises never to go to 1 bob or a fixed daily charge, yesterday safcon was offering unlimited on-net calls for 50/=.

Bob can run for MP, he has the attributes...say one thing, do another!
Business opportunities are like buses,there's always another one coming
tony stark
#80 Posted : Monday, January 24, 2011 9:07:17 AM
Rank: Veteran

Joined: 7/8/2008
Posts: 947
jasonhill wrote:
@Jamani, what if we gave it away for free?

Seriously, what if we gave away limited, low-bandwidth data access, just for casual browsing and calling, in exchange for displaying visual or audible advertisements. Do you think that's viable?

Imagine a Kenyan-developed smartphone app that lets you connect to WiFi hotspots around town for free, but you have to sit through a minute of advertising- a radio commercial- once a day. We sell the advertising to cover the costs. It would be like a giant internet cafe that made its money by selling ad space like billboards, television, and radio do. It may seem crazy, but it should be a lot cheaper than setting up a radio or TV station.

We could offer production of the spots as an incentive to advertise with us. We could use the recording studio I spoke of to record and edit the commercials.

Thoughts?


I thought this was to be done by some jungus and locals. I read this on one of the ICT bloggers website either kemibaro or white african.
I dont think it is a viable plan. The cost of setting up a wireless network that can accomodate 0.5million to 3 million people is not a joke( assuming a sixth to all of nairobi residence can access your network). It would actually be cheaper to set up a radio station.

The advantage of having a free wireless is you can set up region specific adverts. EG when i am access your network from hurlingham you can have an advert of place to eat in the area, or where to shop in yaya etc. You can capture a market that has been traditionally been ignored advertising methods such as dukawallas, small service providers and specialty boutiques etc.

PS: An app is not your solution unless the app hacks other peoples networks and that might be illegal!
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