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Equity Bank unveils its MVNO strategy
Wakanyugi
#41 Posted : Tuesday, May 27, 2014 12:25:42 PM
Rank: Veteran

Joined: 7/3/2007
Posts: 1,635
muganda wrote:
Truth is Safaricom
..earns 191/= from MPesa per customer monthly
....only left with 76/= after paying 40% to agents


I think you got the numbers reversed. If Safaricom pays 40% agency commission it is left with 114 shillings, not 76.

Not too shabby IMHO, especially when you consider they have become a marketing monster.

Marketing is where I believe this potential war with Equity will be decided, not commissions. After all I expect the CCK to eventually enforce the multi agency service model, which will eliminate Safaricoms first mover advantage and reduce pressure on commissions.

Then again I have learned, to my cost, never to mis-understimate one, James Mwangi.

As someone else said, the customer will be the real beneficiary.

Let the games begin!
"The opposite of a correct statement is a false statement. But the opposite of a profound truth may well be another profound truth." (Niels Bohr)
vky
#42 Posted : Tuesday, May 27, 2014 12:26:40 PM
Rank: Member

Joined: 6/17/2010
Posts: 572
Museveni wrote:
CASHFLOW202 wrote:
Museveni wrote:
CASHFLOW202 wrote:
Those charges are the real deal. It's a good blow to pesa after they have been taking a lions share of commissions in every transaction one makes.
However they should be well decisive to add voice and sms services in their Sim cards.

That would break the proverbial camel's back.

Margins in voice are slim & cost of maintaining clients hooked on the service are not very enticing ( Saf's post paid tariff withdrawal from market ).

Also, this is a fat opportunity to the enterprising to come up with/invent/import/customize devices (think digital wallets) that will maximise the potential for these mobile transactions without necessarily being phones, meaning their cost will be lower since the stringent measures applied for phone compliance do not apply.

The infrastructure is ready. It's not like they have to set it up. And their Customers service center is there also to handle queries. I don't see why they would deny their customers the convenience of voice, sms, and data especially with most people needing to call their help desk for guidance as they Gain ground on educating the mass on this new way of doing great banking.
Apps on that Sim or on smart devices will need data connectivity and unless you live in nakuru where there is free Wi-Fi d'oh!


The main reason would be who needs another line ?

How many numbers do your friends have to keep track of on you ? We all know how hard it has been for any new entrant to get subscribers off their initial service providers(Saf & Kencell [Airtel]). Data services are always available even without activation of the voice service. You do not necessarily need a WiFi availability.

It provides a much smooth experience for simple yet effective service delivery without additional costs for a service which others have perfected. Remember voice brings about call quality issues which form a huge complaint from clients. Data only cards/devices have less issues.

Case in point. 3G modems are devices that came about as a result in the need for internet access without necessarily requiring a voice plan. ( very few complaints about the modem devices, most complaints are about data speeds & charges from the different providers ).

Calls to the CCC or help desks can be made using your regular lines as you effect commands/change settings on the separate device.

u
they will issue a flexible thin sim card that will be placed on top of your existing sim and will easily fit back into your phone, with this you enjoy normal network services from your provider and also get the MVNO
'One headache for famous medieval holy people was that someone might murder you to acquire your body parts for the relics trade'
muganda
#43 Posted : Tuesday, May 27, 2014 12:37:15 PM
Rank: Elder

Joined: 9/15/2006
Posts: 3,907
Cheers @Wakanyugi, you said it.
I've updated original post/estimate to come up a pretax estimate of 35/= monthly per customer, or 630m pre-tax annually, for the first couple of years.
Wakanyugi wrote:
muganda wrote:
Truth is Safaricom
..earns 191/= from MPesa per customer monthly
....only left with 76/= after paying 40% to agents


I think you got the numbers reversed. If Safaricom pays 40% agency commission it is left with 114 shillings, not 76.

Not too shabby IMHO, especially when you consider they have become a marketing monster.

Marketing is where I believe this potential war with Equity will be decided, not commissions. After all I expect the CCK to eventually enforce the multi agency service model, which will eliminate Safaricoms first mover advantage and reduce pressure on commissions.

Then again I have learned, to my cost, never to mis-understimate one, James Mwangi.

As someone else said, the customer will be the real beneficiary.

Let the games begin!

Goldilocks Reloaded
#44 Posted : Tuesday, May 27, 2014 1:49:18 PM
Rank: Member

Joined: 1/14/2014
Posts: 178
vky wrote:
Museveni wrote:
CASHFLOW202 wrote:
Museveni wrote:
CASHFLOW202 wrote:
Those charges are the real deal. It's a good blow to pesa after they have been taking a lions share of commissions in every transaction one makes.
However they should be well decisive to add voice and sms services in their Sim cards.

That would break the proverbial camel's back.

Margins in voice are slim & cost of maintaining clients hooked on the service are not very enticing ( Saf's post paid tariff withdrawal from market ).

Also, this is a fat opportunity to the enterprising to come up with/invent/import/customize devices (think digital wallets) that will maximise the potential for these mobile transactions without necessarily being phones, meaning their cost will be lower since the stringent measures applied for phone compliance do not apply.

The infrastructure is ready. It's not like they have to set it up. And their Customers service center is there also to handle queries. I don't see why they would deny their customers the convenience of voice, sms, and data especially with most people needing to call their help desk for guidance as they Gain ground on educating the mass on this new way of doing great banking.
Apps on that Sim or on smart devices will need data connectivity and unless you live in nakuru where there is free Wi-Fi d'oh!


The main reason would be who needs another line ?

How many numbers do your friends have to keep track of on you ? We all know how hard it has been for any new entrant to get subscribers off their initial service providers(Saf & Kencell [Airtel]). Data services are always available even without activation of the voice service. You do not necessarily need a WiFi availability.

It provides a much smooth experience for simple yet effective service delivery without additional costs for a service which others have perfected. Remember voice brings about call quality issues which form a huge complaint from clients. Data only cards/devices have less issues.

Case in point. 3G modems are devices that came about as a result in the need for internet access without necessarily requiring a voice plan. ( very few complaints about the modem devices, most complaints are about data speeds & charges from the different providers ).

Calls to the CCC or help desks can be made using your regular lines as you effect commands/change settings on the separate device.


they will issue a flexible thin sim card that will be placed on top of your existing sim and will easily fit back into your phone, with this you enjoy normal network services from your provider and also get the MVNO


Ebu say that again? "sim-within-a-sim"? Does existing hardware (i.e. phones, tablets, etc) have capability to read the two sims concurrently from one slot or how will it work?
Go for a business that any idiot can run – because sooner or later, any idiot is probably going to run it – Peter Lynch
Museveni
#45 Posted : Tuesday, May 27, 2014 2:14:31 PM
Rank: Member

Joined: 8/16/2012
Posts: 661
Goldilocks Reloaded wrote:
vky wrote:
Museveni wrote:
CASHFLOW202 wrote:
Museveni wrote:
CASHFLOW202 wrote:
Those charges are the real deal. It's a good blow to pesa after they have been taking a lions share of commissions in every transaction one makes.
However they should be well decisive to add voice and sms services in their Sim cards.

That would break the proverbial camel's back.

Margins in voice are slim & cost of maintaining clients hooked on the service are not very enticing ( Saf's post paid tariff withdrawal from market ).

Also, this is a fat opportunity to the enterprising to come up with/invent/import/customize devices (think digital wallets) that will maximise the potential for these mobile transactions without necessarily being phones, meaning their cost will be lower since the stringent measures applied for phone compliance do not apply.

The infrastructure is ready. It's not like they have to set it up. And their Customers service center is there also to handle queries. I don't see why they would deny their customers the convenience of voice, sms, and data especially with most people needing to call their help desk for guidance as they Gain ground on educating the mass on this new way of doing great banking.
Apps on that Sim or on smart devices will need data connectivity and unless you live in nakuru where there is free Wi-Fi d'oh!


The main reason would be who needs another line ?

How many numbers do your friends have to keep track of on you ? We all know how hard it has been for any new entrant to get subscribers off their initial service providers(Saf & Kencell [Airtel]). Data services are always available even without activation of the voice service. You do not necessarily need a WiFi availability.

It provides a much smooth experience for simple yet effective service delivery without additional costs for a service which others have perfected. Remember voice brings about call quality issues which form a huge complaint from clients. Data only cards/devices have less issues.

Case in point. 3G modems are devices that came about as a result in the need for internet access without necessarily requiring a voice plan. ( very few complaints about the modem devices, most complaints are about data speeds & charges from the different providers ).

Calls to the CCC or help desks can be made using your regular lines as you effect commands/change settings on the separate device.


they will issue a flexible thin sim card that will be placed on top of your existing sim and will easily fit back into your phone, with this you enjoy normal network services from your provider and also get the MVNO


Ebu say that again? "sim-within-a-sim"? Does existing hardware (i.e. phones, tablets, etc) have capability to read the two sims concurrently from one slot or how will it work?


Not possible.

Getting subscribers to move to a different line will present a huge challenge. ION they may decide to make use of subscriber migration platform for clients to retain same number otherwise, even with free phones, watu wataweka their old lines na hio new sim-card ibaki tu unused.
Live and learn; and don’t forget, nothing ventured, nothing gained.
quicksand
#46 Posted : Tuesday, May 27, 2014 2:19:29 PM
Rank: Veteran

Joined: 7/5/2010
Posts: 2,061
Location: Nairobi
Wakanyugi wrote:
muganda wrote:
Truth is Safaricom
..earns 191/= from MPesa per customer monthly
....only left with 76/= after paying 40% to agents


I think you got the numbers reversed. If Safaricom pays 40% agency commission it is left with 114 shillings, not 76.

Not too shabby IMHO, especially when you consider they have become a marketing monster.

Marketing is where I believe this potential war with Equity will be decided, not commissions. After all I expect the CCK to eventually enforce the multi agency service model, which will eliminate Safaricoms first mover advantage and reduce pressure on commissions.

Then again I have learned, to my cost, never to mis-understimate one, James Mwangi.

As someone else said, the customer will be the real beneficiary.

Let the games begin!

This sphere of operations is too new (Kenya is writing the mobile money textbook as we speak!) and too complex (legally and technically) to be left to a daft and bungling organization like the CCK to manage. Why? Because CCK will forget its role is that of impartial referee and it will want to be a power player, a prefect, and hence will propose stupid unworkable frameworks that will harm all, Equity, Safaricom, Airtel and any new entrants. There is plenty of precedence, the recent conditions on the divvying up of Yu being a perfect example. Mobile Number Portability. Managememt of spectrum. LTE licensing is in limbo. Look, you cannot withdraw your Barclays balance from a KCB counter and the multi-agency model as currently proposed by CCK is idiotic. They grow fat by leeching on taxpayer money, do you think coherent, robust governance and regulation can come from these people? A multi agency model needs to be grown independently by the players, not shoved down the throat by the regulator.
vky
#47 Posted : Tuesday, May 27, 2014 2:41:58 PM
Rank: Member

Joined: 6/17/2010
Posts: 572
Museveni wrote:
Goldilocks Reloaded wrote:
vky wrote:
Museveni wrote:
CASHFLOW202 wrote:
Museveni wrote:
CASHFLOW202 wrote:
Those charges are the real deal. It's a good blow to pesa after they have been taking a lions share of commissions in every transaction one makes.
However they should be well decisive to add voice and sms services in their Sim cards.

That would break the proverbial camel's back.

Margins in voice are slim & cost of maintaining clients hooked on the service are not very enticing ( Saf's post paid tariff withdrawal from market ).

Also, this is a fat opportunity to the enterprising to come up with/invent/import/customize devices (think digital wallets) that will maximise the potential for these mobile transactions without necessarily being phones, meaning their cost will be lower since the stringent measures applied for phone compliance do not apply.

The infrastructure is ready. It's not like they have to set it up. And their Customers service center is there also to handle queries. I don't see why they would deny their customers the convenience of voice, sms, and data especially with most people needing to call their help desk for guidance as they Gain ground on educating the mass on this new way of doing great banking.
Apps on that Sim or on smart devices will need data connectivity and unless you live in nakuru where there is free Wi-Fi d'oh!


The main reason would be who needs another line ?

How many numbers do your friends have to keep track of on you ? We all know how hard it has been for any new entrant to get subscribers off their initial service providers(Saf & Kencell [Airtel]). Data services are always available even without activation of the voice service. You do not necessarily need a WiFi availability.

It provides a much smooth experience for simple yet effective service delivery without additional costs for a service which others have perfected. Remember voice brings about call quality issues which form a huge complaint from clients. Data only cards/devices have less issues.

Case in point. 3G modems are devices that came about as a result in the need for internet access without necessarily requiring a voice plan. ( very few complaints about the modem devices, most complaints are about data speeds & charges from the different providers ).

Calls to the CCC or help desks can be made using your regular lines as you effect commands/change settings on the separate device.


they will issue a flexible thin sim card that will be placed on top of your existing sim and will easily fit back into your phone, with this you enjoy normal network services from your provider and also get the MVNO


Ebu say that again? "sim-within-a-sim"? Does existing hardware (i.e. phones, tablets, etc) have capability to read the two sims concurrently from one slot or how will it work?


Not possible.

Getting subscribers to move to a different line will present a huge challenge. ION they may decide to make use of subscriber migration platform for clients to retain same number otherwise, even with free phones, watu wataweka their old lines na hio new sim-card ibaki tu unused.


very possible, remember those chaps on luthuli ave who used to cut your safcom and zain sim then fix the two together in one phone, got that info from their call centre and also saw a photo of the thing on their twitter account
'One headache for famous medieval holy people was that someone might murder you to acquire your body parts for the relics trade'
Museveni
#48 Posted : Tuesday, May 27, 2014 3:07:25 PM
Rank: Member

Joined: 8/16/2012
Posts: 661
vky wrote:
Museveni wrote:
Goldilocks Reloaded wrote:
vky wrote:
Museveni wrote:
CASHFLOW202 wrote:
Museveni wrote:
CASHFLOW202 wrote:
Those charges are the real deal. It's a good blow to pesa after they have been taking a lions share of commissions in every transaction one makes.
However they should be well decisive to add voice and sms services in their Sim cards.

That would break the proverbial camel's back.

Margins in voice are slim & cost of maintaining clients hooked on the service are not very enticing ( Saf's post paid tariff withdrawal from market ).

Also, this is a fat opportunity to the enterprising to come up with/invent/import/customize devices (think digital wallets) that will maximise the potential for these mobile transactions without necessarily being phones, meaning their cost will be lower since the stringent measures applied for phone compliance do not apply.

The infrastructure is ready. It's not like they have to set it up. And their Customers service center is there also to handle queries. I don't see why they would deny their customers the convenience of voice, sms, and data especially with most people needing to call their help desk for guidance as they Gain ground on educating the mass on this new way of doing great banking.
Apps on that Sim or on smart devices will need data connectivity and unless you live in nakuru where there is free Wi-Fi d'oh!


The main reason would be who needs another line ?

How many numbers do your friends have to keep track of on you ? We all know how hard it has been for any new entrant to get subscribers off their initial service providers(Saf & Kencell [Airtel]). Data services are always available even without activation of the voice service. You do not necessarily need a WiFi availability.

It provides a much smooth experience for simple yet effective service delivery without additional costs for a service which others have perfected. Remember voice brings about call quality issues which form a huge complaint from clients. Data only cards/devices have less issues.

Case in point. 3G modems are devices that came about as a result in the need for internet access without necessarily requiring a voice plan. ( very few complaints about the modem devices, most complaints are about data speeds & charges from the different providers ).

Calls to the CCC or help desks can be made using your regular lines as you effect commands/change settings on the separate device.


they will issue a flexible thin sim card that will be placed on top of your existing sim and will easily fit back into your phone, with this you enjoy normal network services from your provider and also get the MVNO


Ebu say that again? "sim-within-a-sim"? Does existing hardware (i.e. phones, tablets, etc) have capability to read the two sims concurrently from one slot or how will it work?


Not possible.

Getting subscribers to move to a different line will present a huge challenge. ION they may decide to make use of subscriber migration platform for clients to retain same number otherwise, even with free phones, watu wataweka their old lines na hio new sim-card ibaki tu unused.


very possible, remember those chaps on luthuli ave who used to cut your safcom and zain sim then fix the two together in one phone, got that info from their call centre and also saw a photo of the thing on their twitter account


Maybe Dual sim adapters. Not sim within a sim.

These come with their share of challenges. Not all phones have extra room to accommodate the space needed. Sometimes a different case/cover needed.

Wapi link to twitter ?
Live and learn; and don’t forget, nothing ventured, nothing gained.
poundfoolish
#49 Posted : Tuesday, May 27, 2014 3:57:23 PM
Rank: Elder

Joined: 12/2/2009
Posts: 2,458
Location: Nairobi
holycow wrote:
My pedestrian thinking, would KCB, COOP, NBK and other banks allow Equity "Mpesa" to withdraw money from their customers accounts the same way they have allowed Mpesa to link to their customer accounts? If Equity is targeting it's existing clients then it's ok.



problem no.1 Brand.
You have already highlighted the first issue Equity has to deal with.

2ndly and related to problem 1 above is marketing & ad firm. They should pray Safaricom does not sign-up all the top notch firms.
The advertisement war here is going to be massive i presume.

As much as Mpesa bank has become such a mammoth, that will start trampling on competitors as well as customers. i do not see Equity upstaging them with this product per se.
May be their main goal is not Mpesa, but their usual competitor.

Simba should start worrying or being innovative.
Othelo
#50 Posted : Tuesday, May 27, 2014 7:27:58 PM
Rank: User

Joined: 1/20/2014
Posts: 3,528
poundfoolish wrote:
holycow wrote:
My pedestrian thinking, would KCB, COOP, NBK and other banks allow Equity "Mpesa" to withdraw money from their customers accounts the same way they have allowed Mpesa to link to their customer accounts? If Equity is targeting it's existing clients then it's ok.



problem no.1 Brand.
You have already highlighted the first issue Equity has to deal with.

2ndly and related to problem 1 above is marketing & ad firm. They should pray Safaricom does not sign-up all the top notch firms.
The advertisement war here is going to be massive i presume.

As much as Mpesa bank has become such a mammoth, that will start trampling on competitors as well as customers. i do not see Equity upstaging them with this product per se.
May be their main goal is not Mpesa, but their usual competitor.

Simba should start worrying or being innovative.

I think that is one of the main reasons equity is in this thing. Remember when they went for the masses nobody wanted to touch. Somehow i believe Dr. Mwangi knows his game plan!
Formal education will make you a living. Self-education will make you a fortune - Jim Rohn.
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