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Safaricom Restructure or downsizing?
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mchuuzi
#21 Posted : Monday, March 14, 2011 12:01:23 PM
Rank: Member

Joined: 9/6/2007
Posts: 132
From the above discussions regardless of who started when the bottom line is Kencell made major mistakes that gave Safaricom a headstart.Celtel Zain tried to catch up and now Airtel need a miracle to catch up remember this is not the first time they have pulled the price cut trick.We had Switch ufurahie,pamoja Vuka etc.
The Kenyan market is very Queer and despiite the price cuts Kenyans are still having Safaricom sim cards.Definitely Safaricom market share will be shaken and hence have to get into cost cutting strategies.I dont think Airtel are here to stay I give them 2 years maximum.Ps Under whatever name they operate this company has never made profits in the Kenyan operation.
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muganda
#22 Posted : Monday, March 14, 2011 12:18:23 PM
Rank: Elder

Joined: 9/15/2006
Posts: 3,907
tony stark wrote:
Muhika are you a politician??


@tony stark your dates are correct yet it is not totally counter to @mukiha's position.

For mobile in Kenya:
Vivendi operationalized their license 1st, quickly taking all cream subscribers (postpaid) in the market - they held no 1 position for around 2 years.
Vodafone operationalized their license 2nd, as a spin-off from Telkom, opting to strategically retain the name Safaricom.
Essar came third, and Telkom converted to Orange 4th.

What we have to flat out banish is this talk of 'forceful monopoly' - it amounts to blaming Jesse Owens for being 'black'.
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moneydust
#23 Posted : Monday, March 14, 2011 12:30:52 PM
Rank: Member

Joined: 1/31/2007
Posts: 304
VituVingiSana wrote:
chaliwong wrote:
Airtel will never score in kenya. The only people who wil score with Airtel are consumers
As a consumer I am happy...


Me too gone are the days when I used to make calls with my eyes on the clock..

Nowadays I find myself enjoying my calls very much.Airtel may not make profits for now but we the mobile phone consumers shall forever remain indebted to them and one day they shall get their just rewards..
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muganda
#24 Posted : Monday, March 14, 2011 12:34:37 PM
Rank: Elder

Joined: 9/15/2006
Posts: 3,907
Now on another note, I remember reading a humorous account by Carol Musyoka on CEO transitions. A departing benevolent CEO leaves sealed letters to the new entrant, to be opened if the company faced a crisis. When the first crisis occurs, the new CEO opens the first letter and it instructs "blame your predecessor". After a smooth couple of months, another crisis and another letter must be opened - this one reads "reorangize".

Perhaps this explains the reorganization at EABL after Mahinda left, and the one in Safaricom after MJ left.


From the public gallery, I must note the difference in approach between Messr Collymore and Joseph. Michael Joseph seems to be a revenue/growth man; fire at all cylinders whatever the price. Bob Collymore seems obessed about the customer and in these new times, must find a way to do it while remaining profitable.

Could Safaricom profitably stick to its old ways? (probably not)
Will Safaricom be more effecient after reorganization (probably so)
Did something need to change at Safaricom? (definitely)
Could the best years be ahead for Safaricom? (only time will tell)
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My 2 cents
#25 Posted : Monday, March 14, 2011 12:56:29 PM
Rank: Veteran

Joined: 6/2/2010
Posts: 1,091
moneydust wrote:
VituVingiSana wrote:
chaliwong wrote:
Airtel will never score in kenya. The only people who wil score with Airtel are consumers
As a consumer I am happy...


Me too gone are the days when I used to make calls with my eyes on the clock..

Nowadays I find myself enjoying my calls very much.Airtel may not make profits for now but we the mobile phone consumers shall forever remain indebted to them and one day they shall get their just rewards..

Airtel is NOT a charity. The price wars were just to gain market share. Had they suceeded, the prices would be back up. The prices they are charging now are below cost; you cannot do this ad infinitum, as a business. Not even as a charity.
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mukiha
#26 Posted : Monday, March 14, 2011 12:59:53 PM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
tony stark wrote:
mukiha wrote:
aydenjason wrote:
lets nt 4get that kenya has hd 10yrs of unleveled telecom playin field n forceful monopoly. Regardles of wat happened then, all is bound to change now that all seems to be leveling up. The upcoming mobile no portability wil b the 6th nail on that casket..

I hope you don't mean in favour of SCOM. This notion has been peddled around by politicians.....Remember when the IPO price was announced, they complained that 5-bob "too cheap". The market has proven them dead wrong - the price was just right.

Truth is: SCOM was the third player in the market, after Telkom and Kencell. By the time SCOM launched, Kencell had over 50,000 subscribers. Then things started turning and both reached 200,000 at the same time... when SCOM touched 500,000, Kencell was at 300,000

At one million for SCOM, Kencell had not even crossed the 0.5m mark.... since then, Kencell/Celltel/Zain/Airtel has just been making mistake after mistake and seeing dust all the way....

The field has been level. Nobody has ever been forced to stay in SCOM. In fact, I only joined SCOM recently because of M-PESA. But I still make all voice calls using Airtel.


Muhika are you a politician??
Safaricom launched in 1997 (using GSM) but had been in existence since 1992(using ETACS). They relaunched as a privatized operator in 2000 after vodafone bought shares in the company.
Kencell has been in operation since august 2000.

This misinformation on the launch of the mobile providers leads me to the conclusion that you are also probably lying about the figures and the levelness of the playing field.
Kind regards

@tony; "lie" is such a strong, nay, harsh, word... I'd prefer you say "mistaken"
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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majimaji
#27 Posted : Monday, March 14, 2011 1:09:38 PM
Rank: Veteran

Joined: 4/4/2007
Posts: 1,162

Methinks once Airtel rolls out 3G it will be a giant leap against safcom. What keeps me in safcom is 3G and Mpesa.
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mukiha
#28 Posted : Monday, March 14, 2011 2:00:02 PM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
majimaji wrote:

Methinks once Airtel rolls out 3G it will be a giant leap against safcom. What keeps me in safcom is 3G and Mpesa.

Don't hold your breath!

Kencell/Celltel/Zain were always one step ahead of SCOM in product innovation. First to introduce SMS; First with Airtime sharing; First with Momey transfer [remember SokoTele?]; First with Blackberry [SCOM launched it without the supporting infrastructure!] etc...

The only thing that SCOM launched before these guys is Mobile Internet - starting from GPRS then EDGE and now 3G

Kencell/Celltel/Zain have simply messed up in their marketing. Their assumption that the market is looking for cheaper product has been proven wrong each time.

If you doubt me: see your own comment, you are in SCOM for 3G [=Internet] and M-Pesa [=money transfer]. Are you aware that SCOM is more expensive on these two services? Yet you are buying them from SCOM.

If history is anything to go by, Airtel will launch their 3G; make a lot noise for a few days then go quiet. At that point SCOM will launch 4G and Airtel will be sold to another eager buyer!
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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tony stark
#29 Posted : Monday, March 14, 2011 2:18:09 PM
Rank: Veteran

Joined: 7/8/2008
Posts: 947
mukiha wrote:
tony stark wrote:
mukiha wrote:
aydenjason wrote:
lets nt 4get that kenya has hd 10yrs of unleveled telecom playin field n forceful monopoly. Regardles of wat happened then, all is bound to change now that all seems to be leveling up. The upcoming mobile no portability wil b the 6th nail on that casket..

I hope you don't mean in favour of SCOM. This notion has been peddled around by politicians.....Remember when the IPO price was announced, they complained that 5-bob "too cheap". The market has proven them dead wrong - the price was just right.

Truth is: SCOM was the third player in the market, after Telkom and Kencell. By the time SCOM launched, Kencell had over 50,000 subscribers. Then things started turning and both reached 200,000 at the same time... when SCOM touched 500,000, Kencell was at 300,000

At one million for SCOM, Kencell had not even crossed the 0.5m mark.... since then, Kencell/Celltel/Zain/Airtel has just been making mistake after mistake and seeing dust all the way....

The field has been level. Nobody has ever been forced to stay in SCOM. In fact, I only joined SCOM recently because of M-PESA. But I still make all voice calls using Airtel.


Muhika are you a politician??
Safaricom launched in 1997 (using GSM) but had been in existence since 1992(using ETACS). They relaunched as a privatized operator in 2000 after vodafone bought shares in the company.
Kencell has been in operation since august 2000.

This misinformation on the launch of the mobile providers leads me to the conclusion that you are also probably lying about the figures and the levelness of the playing field.
Kind regards

@tony; "lie" is such a strong, nay, harsh, word... I'd prefer you say "mistaken"

My humble apologies.
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subzero
#30 Posted : Monday, March 14, 2011 3:34:53 PM
Rank: Member

Joined: 1/10/2008
Posts: 365
mukiha wrote:
[quote=majimaji]
First with Momey transfer [remember SokoTele?];


@mukiha are you sure ?
Shame on you
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