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Could Safaricom issue a profit warning?
Rank: New-farer Joined: 7/2/2010 Posts: 4 Location: nairobi
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VVS Airtel survive by cutting cost, how is a company that uses that as a survival tactic create Jobs?
In india this company outbid its rival to offer telecommunication services to rural areas by offering to pay the govt for the tender even when the government had given subsidies for interested companies.Airtel waived those subsidies and offered to pay so as to out bid the others.Now few months down the line Airtel writes to the Govt requesting to exit the areas it bid for, claiming the area was growing at a very slow rate,but the govt has refused to grant them their request.
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Rank: Elder Joined: 9/12/2006 Posts: 1,554
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kenyarevolution wrote:VVS Airtel survive by cutting cost, how is a company that uses that as a survival tactic create Jobs?
In india this company outbid its rival to offer telecommunication services to rural areas by offering to pay the govt for the tender even when the government had given subsidies for interested companies.Airtel waived those subsidies and offered to pay so as to out bid the others.Now few months down the line Airtel writes to the Govt requesting to exit the areas it bid for, claiming the area was growing at a very slow rate,but the govt has refused to grant them their request.
News from Mahabarat above... you now have an idea of what might happen to our situation in the near future
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Rank: Chief Joined: 1/3/2007 Posts: 18,351 Location: Nairobi
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Jamani wrote:kenyarevolution wrote:VVS Airtel survive by cutting cost, how is a company that uses that as a survival tactic create Jobs?
In india this company outbid its rival to offer telecommunication services to rural areas by offering to pay the govt for the tender even when the government had given subsidies for interested companies.Airtel waived those subsidies and offered to pay so as to out bid the others.Now few months down the line Airtel writes to the Govt requesting to exit the areas it bid for, claiming the area was growing at a very slow rate,but the govt has refused to grant them their request. News from Mahabarat above... you now have an idea of what might happen to our situation in the near future No problem. The govt of India should stand fast & REFUSE the request! Same thing in Kenya, if you enter into a contract/agreement & you fail to fulfill it then you pay the price! BTW, in Kenya [I have no idea about India] we have a Universal Service Fee [0.5% - 1% of Revenues] which will [hopefully] be used to build infrastructure in rural or underserved areas. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/12/2006 Posts: 1,554
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VituVingiSana wrote:Jamani wrote:kenyarevolution wrote:VVS Airtel survive by cutting cost, how is a company that uses that as a survival tactic create Jobs?
In india this company outbid its rival to offer telecommunication services to rural areas by offering to pay the govt for the tender even when the government had given subsidies for interested companies.Airtel waived those subsidies and offered to pay so as to out bid the others.Now few months down the line Airtel writes to the Govt requesting to exit the areas it bid for, claiming the area was growing at a very slow rate,but the govt has refused to grant them their request. News from Mahabarat above... you now have an idea of what might happen to our situation in the near future No problem. The govt of India should stand fast & REFUSE the request! Same thing in Kenya, if you enter into a contract/agreement & you fail to fulfill it then you pay the price! hahaha Kenya its the pocket that talks TKK
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Rank: Chief Joined: 1/3/2007 Posts: 18,351 Location: Nairobi
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Jamani wrote: Same thing in Kenya, if you enter into a contract/agreement & you fail to fulfill it then you pay the price! hahaha Kenya its the pocket that talks TKK Then it is a structural/institutional problem... Protecting Safaricom [or Orange] will not solve that problem... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/12/2006 Posts: 1,554
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VituVingiSana wrote:Jamani wrote: Same thing in Kenya, if you enter into a contract/agreement & you fail to fulfill it then you pay the price! hahaha Kenya its the pocket that talks TKK Then it is a structural/institutional problem... Protecting Safaricom [or Orange] will not solve that problem... True that neither will undercutting the market do it. Fair pricing will make our economy grow and technology advance, with cheap pricing we shall save coins in pockets but slow down on growth due to backward technology. By the way are you aware that some operators in Kenya are buying mtumba equipment thats being phased out in other markets.....yes its happenning
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Rank: Chief Joined: 1/3/2007 Posts: 18,351 Location: Nairobi
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Jamani wrote:VituVingiSana wrote:Jamani wrote: Same thing in Kenya, if you enter into a contract/agreement & you fail to fulfill it then you pay the price! hahaha Kenya its the pocket that talks TKK Then it is a structural/institutional problem... Protecting Safaricom [or Orange] will not solve that problem... True that neither will undercutting the market do it. Fair pricing will make our economy grow and technology advance, with cheap pricing we shall save coins in pockets but slow down on growth due to backward technology. By the way are you aware that some operators in Kenya are buying mtumba equipment thats being phased out in other markets.....yes its happenning That is OK. If we can get it a fraction of the new stuff, why not? In the rural areas 2G suffices [how many ICT guys are out there?] for basic internet/data needs. Of course, 2G is fine for voice where the traffic is light to moderate. I buy second-hand (or old) items if I do not need the latest in tech products. As long as it fulfills my needs/requirements at a price I can afford. BTW, in Kenya... we have mitumba (clothes), cars, machinery, phones, computers, etc! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 10/13/2009 Posts: 1,950 Location: in kenya
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@VVS did you read this story http://bit.ly/iks6de this change in strategy did not only cost jobs but htose who were asked to reapply were paid Half the salary..Now tell me how is cost cutting good for the industry...obviously these employees who will receive half the pay will be too demoralized to work efficiently and who gets the blunt of low moral...obviously us the customers. '......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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Rank: Elder Joined: 9/12/2006 Posts: 1,554
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VituVingiSana wrote:Jamani wrote:VituVingiSana wrote:Jamani wrote: Same thing in Kenya, if you enter into a contract/agreement & you fail to fulfill it then you pay the price! hahaha Kenya its the pocket that talks TKK Then it is a structural/institutional problem... Protecting Safaricom [or Orange] will not solve that problem... True that neither will undercutting the market do it. Fair pricing will make our economy grow and technology advance, with cheap pricing we shall save coins in pockets but slow down on growth due to backward technology. By the way are you aware that some operators in Kenya are buying mtumba equipment thats being phased out in other markets.....yes its happenning That is OK. If we can get it a fraction of the new stuff, why not? In the rural areas 2G suffices [how many ICT guys are out there?] for basic internet/data needs. Of course, 2G is fine for voice where the traffic is light to moderate. I buy second-hand (or old) items if I do not need the latest in tech products. As long as it fulfills my needs/requirements at a price I can afford. BTW, in Kenya... we have mitumba (clothes), cars, machinery, phones, computers, etc! You missed the point... IT technology my dear advances very fast, its not like buying mtumba cloths, since mtumba clothes are still in fashion by the time they reach kenya... and those second nodes/equipment bought are not for rural areas as you mention above but installed in urban areas. yaani these cheap things are turning us backwards
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Could Safaricom issue a profit warning?
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