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Fees, Taxes, Stupidity - 'clean' business is very tough in Kenya
Rank: Chief Joined: 1/3/2007 Posts: 18,371 Location: Nairobi
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http://www.businessdaily.../-/1fjio1z/-/index.html
How does CCK justify such high fees? The telcos are being squeezed by such institutions which means the END USERS will pay more! IMHO, such fees should be capped & all taxes/levies should be shown as a cost to consumers. I pay 1/- per minute for Airtel-Airtel. I would love to see how much goes to taxes/levies...! All telcos suffer [and this cost is passed on to consumers] with such crazy levies & fees with LITTLE to show for it! Same thing happens when I pay taxes to Nairobi City Council. They claim they use it well on ALL residents. Bullshit! Why am I paying for others??? No wonder we pay such high prices for everything. The inefficiencies & hidden levies by GoK entities add to the final cost [without a commensurate return]. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/12/2006 Posts: 1,554
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VituVingiSana wrote:http://www.businessdailyafrica....4/-/1fjio1z/-/index.htmlHow does CCK justify such high fees? The telcos are being squeezed by such institutions which means the END USERS will pay more! IMHO, such fees should be capped & all taxes/levies should be shown as a cost to consumers. I pay 1/- per minute for Airtel-Airtel. I would love to see how much goes to taxes/levies...! All telcos suffer [and this cost is passed on to consumers] with such crazy levies & fees with LITTLE to show for it! No wonder we pay such high prices for everything. The inefficiencies & hidden levies by GoK entities add to the final cost [without a commensurate return]. Thats the reason we keep saying that the low calling rates as prescribed by Airtel are unsustainable businesswise, once you put all factors in focus you will understand why our telco industry is in a dangerous position, and likely to face slow or zero growth, firing and export of jobs, lack of technological innovations, closure... to name but a few.
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Rank: Chief Joined: 1/3/2007 Posts: 18,371 Location: Nairobi
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Jamani wrote:Thats the reason we keep saying that the low calling rates as prescribed by Airtel are unsustainable businesswise, once you put all factors in focus you will understand why our telco industry is in a dangerous position, and likely to face slow or zero growth, firing and export of jobs, lack of technological innovations, closure... to name but a few. You have this ALL WRONG... the issue is NOT about Airtel's startegy... The issue is the inefficiencies, ineptness, stupidity that this [CCK & GoK] costs the consumers [whether through Safaricom, YU or Airtel] by favoring a selct few [CCK employees & bureaKRAZY]... I don't get your arguments... Do you support government bloat for a few cushy jobs??? [BTW, eliminating those cushy vampiric jobs will benefit KENYANS much more...] Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/12/2006 Posts: 1,554
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VituVingiSana wrote:Jamani wrote:Thats the reason we keep saying that the low calling rates as prescribed by Airtel are unsustainable businesswise, once you put all factors in focus you will understand why our telco industry is in a dangerous position, and likely to face slow or zero growth, firing and export of jobs, lack of technological innovations, closure... to name but a few. You have this ALL WRONG... the issue is NOT about Airtel's startegy... The issue is the inefficiencies, ineptness, stupidity that this [CCK & GoK] costs the consumers [whether through Safaricom, YU or Airtel] by favoring a selct few [CCK employees & bureaKRAZY]... I don't get your arguments... Do you support government bloat for a few cushy jobs??? [BTW, eliminating those cushy vampiric jobs will benefit KENYANS much more...] I dont support what you call govt bloat, but thats the reality on the ground and it makes it unsustainable to do business with the rates that Airtel has prescribed. As you say the issue is the inefficiencies, ineptness, stupidity that this [CCK & GoK] costs the consumers and i add which makes it unsustainable to run a business, we should address the issue otherwise it will mess us up.
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Rank: Chief Joined: 1/3/2007 Posts: 18,371 Location: Nairobi
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Jamani wrote:VituVingiSana wrote:Jamani wrote:Thats the reason we keep saying that the low calling rates as prescribed by Airtel are unsustainable businesswise, once you put all factors in focus you will understand why our telco industry is in a dangerous position, and likely to face slow or zero growth, firing and export of jobs, lack of technological innovations, closure... to name but a few. You have this ALL WRONG... the issue is NOT about Airtel's startegy... The issue is the inefficiencies, ineptness, stupidity that this [CCK & GoK] costs the consumers [whether through Safaricom, YU or Airtel] by favoring a selct few [CCK employees & bureaKRAZY]... I don't get your arguments... Do you support government bloat for a few cushy jobs??? [BTW, eliminating those cushy vampiric jobs will benefit KENYANS much more...] I dont support what you call govt bloat, but thats the reality on the ground and it makes it unsustainable to do business with the rates that Airtel has prescribed. As you say the issue is the inefficiencies, ineptness, stupidity that this [CCK & GoK] costs the consumers and i add which makes it unsustainable to run a business, we should address the issue otherwise it will mess us up. That's the upside of Airtel's low price strategy [apart from saving me thousands per year] is that the telcos have to get leaner. Even Orange is complaining... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/12/2006 Posts: 1,554
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VituVingiSana wrote:Jamani wrote:VituVingiSana wrote:Jamani wrote:Thats the reason we keep saying that the low calling rates as prescribed by Airtel are unsustainable businesswise, once you put all factors in focus you will understand why our telco industry is in a dangerous position, and likely to face slow or zero growth, firing and export of jobs, lack of technological innovations, closure... to name but a few. You have this ALL WRONG... the issue is NOT about Airtel's startegy... The issue is the inefficiencies, ineptness, stupidity that this [CCK & GoK] costs the consumers [whether through Safaricom, YU or Airtel] by favoring a selct few [CCK employees & bureaKRAZY]... I don't get your arguments... Do you support government bloat for a few cushy jobs??? [BTW, eliminating those cushy vampiric jobs will benefit KENYANS much more...] I dont support what you call govt bloat, but thats the reality on the ground and it makes it unsustainable to do business with the rates that Airtel has prescribed. As you say the issue is the inefficiencies, ineptness, stupidity that this [CCK & GoK] costs the consumers and i add which makes it unsustainable to run a business, we should address the issue otherwise it will mess us up. That's the upside of Airtel's low price strategy [apart from saving me thousands per year] is that the telcos have to get leaner. Even Orange is complaining... And jobs are being shipped to India, as we celebrate the cheap calling rates and savings soon those savings will be washed aside. The root cause of this issue needs to be addressed and fixed, leading to saving jobs and money.
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Rank: Chief Joined: 1/3/2007 Posts: 18,371 Location: Nairobi
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Jamani wrote:VituVingiSana wrote:Jamani wrote:VituVingiSana wrote:Jamani wrote:Thats the reason we keep saying that the low calling rates as prescribed by Airtel are unsustainable businesswise, once you put all factors in focus you will understand why our telco industry is in a dangerous position, and likely to face slow or zero growth, firing and export of jobs, lack of technological innovations, closure... to name but a few. You have this ALL WRONG... the issue is NOT about Airtel's startegy... The issue is the inefficiencies, ineptness, stupidity that this [CCK & GoK] costs the consumers [whether through Safaricom, YU or Airtel] by favoring a selct few [CCK employees & bureaKRAZY]... I don't get your arguments... Do you support government bloat for a few cushy jobs??? [BTW, eliminating those cushy vampiric jobs will benefit KENYANS much more...] I dont support what you call govt bloat, but thats the reality on the ground and it makes it unsustainable to do business with the rates that Airtel has prescribed. As you say the issue is the inefficiencies, ineptness, stupidity that this [CCK & GoK] costs the consumers and i add which makes it unsustainable to run a business, we should address the issue otherwise it will mess us up. That's the upside of Airtel's low price strategy [apart from saving me thousands per year] is that the telcos have to get leaner. Even Orange is complaining... And jobs are being shipped to India, as we celebrate the cheap calling rates and savings soon those savings will be washed aside. The root cause of this issue needs to be addressed and fixed, leading to saving jobs and money. Look, you know I think your stand is NONSENSE... but I am not interested in rehashing that... [please continue spending more on safariCON] The matter at hand is the fees/levies that support a crazy bureauKRAZY [which Safaricom pays the largest amount for/to...]
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/15/2006 Posts: 3,907
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A couple of months ago I touted CCK as one of the regulators with consumer interest paramount.
@VituVingiSana, you are on to something as my post was clearly one dimensional. The money in this industry draws the ugliest of hawks:
- all licenses are issued through questionable intermediaries (Mobitelea, Sameer)
- spectrum, the vital lifeline, can only be obtained from shell companies who receive the same from CCK (Onecom)
- roll out of infrastructure must fit political interests of MPs in their areas for the company to survive
- and the industry in Kenya is most taxed - 4th highest in Africa - contributing 26% direct, 30% corporate, 35% import duty; and now this Universal Service Fund.
Yet tarrifs are the 2nd lowest in Africa - analogically speaking, feels like an inverted KPLC situation where there is no power, and you pay the most in Africa.
A case for better balance across the board.
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Rank: Elder Joined: 9/12/2006 Posts: 1,554
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VituVingiSana wrote:Jamani wrote:VituVingiSana wrote:Jamani wrote:VituVingiSana wrote:Jamani wrote:Thats the reason we keep saying that the low calling rates as prescribed by Airtel are unsustainable businesswise, once you put all factors in focus you will understand why our telco industry is in a dangerous position, and likely to face slow or zero growth, firing and export of jobs, lack of technological innovations, closure... to name but a few. You have this ALL WRONG... the issue is NOT about Airtel's startegy... The issue is the inefficiencies, ineptness, stupidity that this [CCK & GoK] costs the consumers [whether through Safaricom, YU or Airtel] by favoring a selct few [CCK employees & bureaKRAZY]... I don't get your arguments... Do you support government bloat for a few cushy jobs??? [BTW, eliminating those cushy vampiric jobs will benefit KENYANS much more...] I dont support what you call govt bloat, but thats the reality on the ground and it makes it unsustainable to do business with the rates that Airtel has prescribed. As you say the issue is the inefficiencies, ineptness, stupidity that this [CCK & GoK] costs the consumers and i add which makes it unsustainable to run a business, we should address the issue otherwise it will mess us up. That's the upside of Airtel's low price strategy [apart from saving me thousands per year] is that the telcos have to get leaner. Even Orange is complaining... And jobs are being shipped to India, as we celebrate the cheap calling rates and savings soon those savings will be washed aside. The root cause of this issue needs to be addressed and fixed, leading to saving jobs and money. Look, you know I think your stand is NONSENSE... but I am not interested in rehashing that... [please continue spending more on safariCON] The matter at hand is the fees/levies that support a crazy bureauKRAZY [which Safaricom pays the largest amount for/to...]
Thats my stand... it shouldnt hurt you. The matter at hand is how to stop the fees and levies that support what you call a crazy bureauKRAZY. You dont do it by killing the very industry in the name of cheapness or being philanthropic.
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Rank: Veteran Joined: 12/23/2010 Posts: 1,229
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@ VVS and Jamani ...happy to watch this one from the sidelines...again. 
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