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Safaricom should sue CCK..period.
masukuma
#41 Posted : Wednesday, May 05, 2010 7:03:37 AM
Rank: Elder

Joined: 10/4/2006
Posts: 13,823
Location: Nairobi
the world is not a fair place, just ask Microsoft who were penalized for innovation. when you grow to big attacks will be launched on you. What safCON should do is fight this in court (for as long as it can) just as Microsoft did.
All Mushrooms are edible! Some Mushroom are only edible ONCE!
Jaguar
#42 Posted : Wednesday, May 05, 2010 7:04:10 AM
Rank: Member

Joined: 6/7/2007
Posts: 263
Location: humu humu
@vvs, do you see them being able to handle within network traffic if they charge 4/ within network? The thought is good though, i even suggest 3/ within network and 5/ cross network. But they cannot do this overnight, plus they have to get approval from cck. The lower charges will also affect their bottom line. When they used to charge 30/ peak and 11/ offpeak is when they used to make 16B+ profit. I pray they go to court so that they get tamed for good. (dislaimer: i am neither a shareholder nor a subscriber)
VituVingiSana
#43 Posted : Wednesday, May 05, 2010 7:04:17 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,349
Location: Nairobi
mukiha wrote:
Chaka wrote:
May be supernormal profits means 'more than the combined profits' of the other operators ?

Well; what would you expect of a player who has over 70% market-share?

Are we going to punish SCOM for the mistakes [read, losses] made by Zain, Orange and Yu?

This reminds me of the fundamental error of giving scholarships to "children from poor families", but I digress. We can discuss that at another time....

In Kenya, we want to subsidize the FAILURES... Sometimes, you have to let them DIE...

Creative Destruction by Josef Schumpeter is worth reading...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
VituVingiSana
#44 Posted : Wednesday, May 05, 2010 7:09:25 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,349
Location: Nairobi
2012 wrote:
My worry is more on what precedence this action is setting. Who will be next? Scangroup? May be Kenol Kobil? Nation? Citizen? Tuskys? Equity? Bamburi? Bidco? KQ? All companies will be afraid of growth and market leadership if it's termed unfair to be ahead of your lax and inefficient competitors.




AMEN...

Kenol Kobil has fought off Shell, Total, etc to emerge as #1 in Kenya thru ORGANIC growth. Not only in Kenya but also a power in regional East Africa. Will the idiots curb their success?

Nation has grown organically. Did you know Standard used to be #1? KTN was #1? Nation was DENIED broadcast licenses by the corrupt idiot danny moi YET Nation triumphed to be #1.

Nakumatt (& Tuskys) have handily beaten the then #1 Uchumi (dominant in 80s & 90s).

Bidco was a small player against Unilever/EA Industries. Success was hard but earned.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
VituVingiSana
#45 Posted : Wednesday, May 05, 2010 7:14:55 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,349
Location: Nairobi
I use YU (6/- across ALL networks)... so if Kenyans are idiots not to move over to a 'cheaper' network... why blame Safaricom???

IMHO, someone at CCK was told that safcom will not send him/her extra spending money...

BTW, I wud be curious to find out what network/carrier the employees of CCK used...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
SUN RAYS
#46 Posted : Wednesday, May 05, 2010 7:17:12 AM
Rank: New-farer

Joined: 5/5/2010
Posts: 3
Location: nairobi
I do not agree with CCK on this matter,Safaricom has connected well with the Kenyan people.Is worth its existence and profits.Look at simple statistics like employing over 2500 Kenyans directly,it also indirectly employs another alone million through dealerships, m-pesa agency and through the many subcontractors and suppliers.M-pesa alone has improved lives in kenya and many of us can now send the small cash available to our forks in the village at barely no cost. I take the opportunity to castigate the regulator for overstepping mandate and congratulate safaricom for their good work.all the 860,000 investors like me and the 17 million customers are behind you in every way.
Njung'e
#47 Posted : Wednesday, May 05, 2010 7:20:44 AM
Rank: Elder

Joined: 2/7/2007
Posts: 11,935
Location: Nairobi
@Sunray,
17 Million customers??...aiiiH!!....If CCK can control or even lower the costs of making calls ,how would "17 Million Kenyans" be so jinga to stand behind Safcom?
Nothing great was ever achieved without enthusiasm.
chepkel
#48 Posted : Wednesday, May 05, 2010 7:28:44 AM
Rank: Member

Joined: 4/6/2010
Posts: 741
Location: Nairobi
Please give me an example of anti competitive practices. I asl have a problem with the supernormal profits. What is supernormal profits???
I really dont understand this wordy act, does it mean that they do not want a player to dominate a market????
I think it is absolutely unfair. There are many options to choose from and if people decide to leave the cheaper ones and go for the most expensive brand then the other players get jealous!!!!????
The market should be left to regulate itself with very minimal interference from the Government.
Please tell me has safaricom placed any entry barriers for other telecommunication operators???
They shouldhave called this act "The war to bring safaricom down act"
Mkimwa
#49 Posted : Wednesday, May 05, 2010 8:46:38 AM
Rank: Member

Joined: 10/26/2008
Posts: 380
The market is not responding to all this anti-competitive nonsense. It remains as noise. Share price stable at 5.8 for the last 2 or so weeks.
Gatheuzi
#50 Posted : Wednesday, May 05, 2010 9:04:01 AM
Rank: Veteran

Joined: 8/16/2009
Posts: 994
Just a thought - what doest Zain/Yu/Orange plan to do should any of them get past 25% market share? Do they realize they are shooting themselves in the foot.

Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
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