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Could Safaricom issue a profit warning?
VituVingiSana
#51 Posted : Friday, February 18, 2011 8:24:42 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,353
Location: Nairobi
Why are people upset when Safaricom faces competition, lower prices & lower profits?

Why not help KK out by setting MINIMUM prices [which KK would love based on 'fair' pricing] instead of price caps?

What is different between KK & Safaricom?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
mukiha
#52 Posted : Friday, February 18, 2011 8:36:35 AM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
VituVingiSana wrote:
Why are people upset when Safaricom faces competition, lower prices & lower profits?

Why not help KK out by setting MINIMUM prices [which KK would love based on 'fair' pricing] instead of price caps?

What is different between KK & Safaricom?

One supplies a more essential product than the other...
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
VituVingiSana
#53 Posted : Friday, February 18, 2011 8:46:50 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,353
Location: Nairobi
mukiha wrote:
VituVingiSana wrote:
Why are people upset when Safaricom faces competition, lower prices & lower profits?

Why not help KK out by setting MINIMUM prices [which KK would love based on 'fair' pricing] instead of price caps?

What is different between KK & Safaricom?

One supplies a more essential product than the other...
Which one is 'more' essential?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
youcan'tstopusnow
#54 Posted : Friday, February 18, 2011 8:52:36 AM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
Communication is a htman right
GOD BLESS YOUR LIFE
bepari
#55 Posted : Friday, February 18, 2011 9:23:25 AM
Rank: Member

Joined: 12/6/2009
Posts: 108
Location: nairobi
i'll agree that raila may not understand matters telco as much as the average wazuan, but some things are just common sense;why cant safcom spin off its call centre so that other telcos might use it,share BTS to bring down costs and concentrate on its core competence. someone needs to sell their safcom shares and see matters as the are.
if you aint livin on the edge,you are taking too much space....
mukiha
#56 Posted : Friday, February 18, 2011 11:37:25 AM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
VituVingiSana wrote:
mukiha wrote:
VituVingiSana wrote:
Why are people upset when Safaricom faces competition, lower prices & lower profits?

Why not help KK out by setting MINIMUM prices [which KK would love based on 'fair' pricing] instead of price caps?

What is different between KK & Safaricom?

One supplies a more essential product than the other...
Which one is 'more' essential?

Ask yourself this: what would be more catastrophic - all petrol stations running dry or all phone lines going dead?

Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
VituVingiSana
#57 Posted : Friday, February 18, 2011 12:24:42 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,353
Location: Nairobi
mukiha wrote:
VituVingiSana wrote:
mukiha wrote:
VituVingiSana wrote:
Why are people upset when Safaricom faces competition, lower prices & lower profits?

Why not help KK out by setting MINIMUM prices [which KK would love based on 'fair' pricing] instead of price caps?

What is different between KK & Safaricom?

One supplies a more essential product than the other...
Which one is 'more' essential?

Ask yourself this: what would be more catastrophic - all petrol stations running dry or all phone lines going dead?
Well... In Brazil, they use 100% ethanol in the cars so I figure they don't care as much about petrol...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
mukiha
#58 Posted : Friday, February 18, 2011 12:37:53 PM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
VituVingiSana wrote:
mukiha wrote:
VituVingiSana wrote:
mukiha wrote:
VituVingiSana wrote:
Why are people upset when Safaricom faces competition, lower prices & lower profits?

Why not help KK out by setting MINIMUM prices [which KK would love based on 'fair' pricing] instead of price caps?

What is different between KK & Safaricom?

One supplies a more essential product than the other...
Which one is 'more' essential?

Ask yourself this: what would be more catastrophic - all petrol stations running dry or all phone lines going dead?
Well... In Brazil, they use 100% ethanol in the cars so I figure they don't care as much about petrol...

OK, instead of "petrol station", insert "fuel station" and then answer the question...
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
VituVingiSana
#59 Posted : Friday, February 18, 2011 12:42:48 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,353
Location: Nairobi
mukiha wrote:
VituVingiSana wrote:
mukiha wrote:
VituVingiSana wrote:
mukiha wrote:
VituVingiSana wrote:
Why are people upset when Safaricom faces competition, lower prices & lower profits?

Why not help KK out by setting MINIMUM prices [which KK would love based on 'fair' pricing] instead of price caps?

What is different between KK & Safaricom?

One supplies a more essential product than the other...
Which one is 'more' essential?

Ask yourself this: what would be more catastrophic - all petrol stations running dry or all phone lines going dead?
Well... In Brazil, they use 100% ethanol in the cars so I figure they don't care as much about petrol...

OK, instead of "petrol station", insert "fuel station" and then answer the question...
Well, if I can replace your 'phone lines' with conversation/letters/smoke signals/drumbeats?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Much Know
#60 Posted : Friday, February 18, 2011 1:13:17 PM
Rank: Elder

Joined: 12/6/2008
Posts: 3,579
A bit tired of the title and simplistic arguments and guesswork about safaricoms revenue, it's so simple, current voice ARPU 362(as per CCK report below) and 16.7 million customers reflects a voice revenue of about 72.5billion assuming no growth since September, but we all know there is growth. You can do the calculations yourself using the historical data on their 2010 full year

http://www.safaricom.co...._report_2010/index.html

For example the average ARPU for 2008 was 616/-, customer base was between opening 6.081mill, closing 10.231. Average base 8.156mill, approximate revenue = ARPU*8.156mill*12= 60billion (ACTUAL FIGURE 61.39Billion) YOU CAN CHECK!!
Do the same for 2007 you will get 48.05billion against the actual 47.77Billion

Safaricom revenues are not dropping and the CEO implied so (wish i can trace the interview) and with the facts below you can calculate for yourself. NOTABLY THE CHANGE IN MINUTES OF USE ON CCK REPORT

Additional Sources:- CCK sector report

(NOTE THIS WAS AT COMMENCEMENT OF PRICE WARS IN SEPTEMBER AFTER WHICH SAFCOM HAS PICKED MOMENTUM)
http://www.cck.go.ke/res...TICS_REPORT_Q1_1011.pdf


HIGHLIGHTS:-

Subscribers
Page 7
Safaricom 16.71million

Voice Traffic
Page. 8

Similarly, the number of voice minutes received on all mobile networks was 6.63 billion
minutes, representing 97.5 per cent increase from the same period of the previous year
i.e Q1 09/10 against Q1 10/11

The industry’s ARPU now stands at Sh362.20 compared to Sh425.85 in 2007 and Sh376.5 in 2008, according to CCK data.
So has revenue declined sharply? They close year in March. The only guys in trouble are kina airtel.
Ras Kienyeji Man
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