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Equity Bank unveils its MVNO strategy
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Kirika
#421 Posted : Tuesday, September 23, 2014 9:53:13 AM
Rank: Member

Joined: 1/26/2011
Posts: 211
Location: Nairobi
kollabo wrote:
Sasha wrote:
CAK and CBK have given Safaricom a lifeline. 1 year in the technology industry is huge; you only have 3 months of first mover advantage in this industry especially where mobile technology is concerned. If Safaricom are bright, and surely they are, they will come up with something to counter this. They are already talking to KCB and Post Bank to explore a response to Equity.

Looking at it from the banking industry, the other banks are running scared more than Safaricom. There are about 200k mobile banking users in the entire industry. Assuming a conversion rate of as low as 10%, Equity will already have more than 4x mobile banking/payments users than the entire market. The cost savings, revenues from transaction fees, increased deposits will give Equity such a significant edge that the other banks just cannot compete with. No wonder the other banks are busy headhunting at Mpesa.

Pardon my ignorance, but im wondering why Safcom would defer to Vodacome for a thin sim?

I think Safcom never saw this coming, and the way they are running around tells me that all is not well at Waiyaki Way>

Equity's Achilles Heel will be their technology model. They have handled technology very badly since they started, what with CBS being down, ATMs not working, EAZZY247 being crap etc. You would hope that they have learnt a lesson and will not make silly blunders. Ask KCB and CfCStanbic how much they have lost because of silly technology mistakes.


Word on the ground is Safcom have contacted their mother Vodafone to come up with their own thin SIM.
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jwatesh
#422 Posted : Tuesday, September 23, 2014 9:54:57 AM
Rank: Member

Joined: 8/19/2014
Posts: 125
Equity mbus faster than Lewis Hamilton....
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Kirika
#423 Posted : Tuesday, September 23, 2014 9:55:09 AM
Rank: Member

Joined: 1/26/2011
Posts: 211
Location: Nairobi
Why would Safcom need a thin sim ?
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MaichBlack
#424 Posted : Tuesday, September 23, 2014 9:57:46 AM
Rank: Elder

Joined: 7/22/2009
Posts: 7,840
mlennyma wrote:
A dominant player doesn't need a thin sim,its an underdog who needs a thin sim to ride on the dominant sim to pull the dominance down

If safcom comes up with a sim card that is incompatible with the thin sim and have all their customers switch to the new sim, they will have bought themselves quite some time. This will be the mother of all wars. It's gonna be long. It's gonna be brutal!
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Kirika
#425 Posted : Tuesday, September 23, 2014 10:03:32 AM
Rank: Member

Joined: 1/26/2011
Posts: 211
Location: Nairobi
MaichBlack wrote:
mlennyma wrote:
A dominant player doesn't need a thin sim,its an underdog who needs a thin sim to ride on the dominant sim to pull the dominance down

If safcom comes up with a sim card that is incompatible with the thin sim and have all their customers switch to the new sim, they will have bought themselves quite some time. This will be the mother of all wars. It's gonna be long. It's gonna be brutal!



@ Maich,it may not be as simple since Safcom would have to roll out new sim cards and hope that Wanjiku would accept them pronto !
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MaichBlack
#426 Posted : Tuesday, September 23, 2014 10:04:54 AM
Rank: Elder

Joined: 7/22/2009
Posts: 7,840
mlennyma wrote:
BREAKING NEWS:Equity share overtakes kcb share in a fierce trading session

Ka ching ching!!! I like.
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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sumber
#427 Posted : Tuesday, September 23, 2014 10:14:12 AM
Rank: Hello

Joined: 10/12/2011
Posts: 7
I rely hope Safaricom will not steal money from our Mpesa accounts and blame it new technology, and later say,I TOLD YOU!!. Remember they sabotaged number potability and is now a forgotten thing.
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poundfoolish
#428 Posted : Tuesday, September 23, 2014 10:15:09 AM
Rank: Elder

Joined: 12/2/2009
Posts: 2,458
Location: Nairobi
MaichBlack wrote:
mlennyma wrote:
A dominant player doesn't need a thin sim,its an underdog who needs a thin sim to ride on the dominant sim to pull the dominance down

If safcom comes up with a sim card that is incompatible with the thin sim and have all their customers switch to the new sim, they will have bought themselves quite some time. This will be the mother of all wars. It's gonna be long. It's gonna be brutal!


Why would Safaricom come up with a new SIM. Or am i not getting your point?

This battle is starting and its going to be a long one.

Beneficiary to me will be the Bank, MPESA will partner with. I see Simba and/or CBA wakipitia kati kati yao
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Sasha
#429 Posted : Tuesday, September 23, 2014 10:29:43 AM
Rank: Veteran

Joined: 9/5/2007
Posts: 627
@poundfoolish, totally agree on Simba but CBA just don't have the capacity. They are struggling with Mshwari already.

No sense in Safaricom com acquiring a thin sim. I see several things they can do:

1. Allow bank to till payments i.e. you can pay your bill at any merchant directly from your bank account.
2. Allow push USSD on mpesa i.e. make payments on USSD without having to go to STK.
3. Create a new merchant payment tariff and reduce charges levied by banks. Imagine banks charge Kshs 60 per transaction on top of the mpesa charges.

If Safaricom can do this with all the banks in the market, what will make Equity's proposition unique? Like someone said, Equity already have a system for mobile payments (16 merchants) but only process a total of 12,000 transactions per month (i.e. according to their reports).
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Wakanyugi
#430 Posted : Tuesday, September 23, 2014 11:17:05 AM
Rank: Veteran

Joined: 7/3/2007
Posts: 1,635
MaichBlack wrote:
mlennyma wrote:
A dominant player doesn't need a thin sim,its an underdog who needs a thin sim to ride on the dominant sim to pull the dominance down

If safcom comes up with a sim card that is incompatible with the thin sim and have all their customers switch to the new sim, they will have bought themselves quite some time. This will be the mother of all wars. It's gonna be long. It's gonna be brutal!


This could backfire. I can see Equity PR people really going to town with it and invoking the 'us' versus 'them' narrative.

Plus there are clear anti-competitive behavior issues here, especially if it could be shown that the only reason they did this was to exploit their monopoly position to keep out a competitor.
"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)
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