Zain lowered its calling costs to 3/- pm and sms at 1/-. This came after CCK the industry regulator lowered the interconnection rates to 2.21 and 0.1 for calls and sms respectively.
A lot has been said on this topic but my point of interest is different.
Caroline Mutoko in her article on Monday said clearly after quoting Micheal Joseph Safaricon CEO, that for the Telcos to make the same cash they were making before Zain muddied the waters, it will require 65% increase of calls from the customers. This is definitely not going to happen. In fact, looking back, Zain is bound to suffer more for that for the simple reason that 80% of their calls terminate at Safaricom. So, while Zain will be haemorrhaging cash, Safaricom will be gaining from Zain. How uncanny.
For these companies to make cash, innovation is the way out. MPesa is doing great changing lives and there is no doubt about that. Its now available in UK ans South Africa. ZAP meanwhile, is struggling, for the simple reason that they can't facilitate sending cash to other network numbers unlike Safaricom.
Next year Safaricom is unleashing the 4G, quite a feat considering that they have locked the data market through their modems which are now the data entry point for new PC users if not cellphones.
This is the trend that Zain ought to follow but thinking that they will transform the Kenyan market Indian way, that will be a very tall order their tactics are usually short lived.
For now, Safaricom is mulling the next step after Zain muddied the voice prices leading to a loss of 2% traffic. The effects of this will not be immediate, rather they will be visible in due course and this may lead to a closure of two companies to leave the market to two well established Telcos.
If this happens, Safaricom and Orange have the best opportunities to survive, but only of they are focused on reengineering their products and innovating new services for their target clientèle.
Showing posts with label Safaricom. Show all posts
Showing posts with label Safaricom. Show all posts
Friday, 3 September 2010
Thursday, 30 August 2007
SAFCOM IPO TEAM
Lead Transaction Advisors:
Dyer & Blair Consortium - Morgan Stanley, Faida & Asbhu Securities, D&B Inv Bank - Ksh 0.05
Legal Services:
Muriu Mugai - Ksh 2.4M
Receiving Bank:
Citi Consortium - Citi, Equity, K.P.O.Savings Bank - Ksh 94M
Advertisers:
Red Sky - Ksh 2M
Public Relations:
Gina Din Comms
General Motors Kenya Launches Hummer 3 into the market.
('suddenly nothing seems good enough' is the call)
CMC launches New Polo and New 2008 Touareg.
Dyer & Blair Consortium - Morgan Stanley, Faida & Asbhu Securities, D&B Inv Bank - Ksh 0.05
Legal Services:
Muriu Mugai - Ksh 2.4M
Receiving Bank:
Citi Consortium - Citi, Equity, K.P.O.Savings Bank - Ksh 94M
Advertisers:
Red Sky - Ksh 2M
Public Relations:
Gina Din Comms
General Motors Kenya Launches Hummer 3 into the market.
('suddenly nothing seems good enough' is the call)
CMC launches New Polo and New 2008 Touareg.
Wednesday, 29 August 2007
SAFARICOM-THE LAST WORD
I blogged on this issue last November.I notice its been the top content on this blog ever since.It never leaves the top 10 list.After many comments on my blog i.e. Patriotic Kenyan,Gathara and many others, i give you my final thoughts on it in a Q & A format.
How many shareholders does Safaricom K Ltd have?
Two,-Telkom(K) Ltd(60% of Safaricom) and Vodafone (K) Ltd(40% of Safaricom).
What about Mobitelea?
Mobitelea is a shareholder in Vodafone(K) Ltd which is a Private Limited Company.
What about Mobitelea's stake in Safaricom?
Its an Indirect stake, Mobitelea owns 12.5% of Vodafone(K) Ltd while Vodafone Plc holds 87.5% of Vodafone(K) Ltd.Vodafone(K) Ltd main asset is the 40% shares in Safaricom(K) Ltd.
If you take 12.5% of 40% you get the 5% indirect stake Mobitelea has in Safaricom.
How was business was done in the Third World during the 20th Century?
In those days there were no worldwide Mergers and Acquisitions firms,lawyers or clients to perform proper due dilligence and show you the ropes.Think Morgan Stanley,Citibank,PWC and lately Rennaissance.Most firms were based in the WEst and 1 or 2 Asian Capitals i.e. HongKong and Tokyo.Mumbai was the name of some exotic perfume.
If you wanted to take over a local firm or go into a joint Venture with a Third World Government,you allied yourself with a local political operative and he did the 'due dilligence' opened the right doors and he got a stake in the new firm as his Partnership contribution.
********************************************************************************
Say NO! to poor service and substandard goods in Kenya.
Visit here and make your complaint at www.complain2me.wordpress.com
Fighting to have service that is our money's worth.
Join the fight.
********************************************************************************
If you doubt me just look at the list of top civil servants and politicians of the 1960s Kenya and compare that with their business interests.
Why the IPO must go own
The Safaricom IPO will ignite significant foreign interest that will grow our markets and put Kenya in focus of all the top markets.The market Growth will create more jobs for everyone and grow the economy.
If we stop the IPO we can get back Mobitelea's stake
Ha, Not a chance the Mobitelea stake is parked in a private company Vodafone(K) Ltd.Government cant interfere with private property that is unconstitutional
Let me put the point across using a story:
There was once an old mzee who had 10 acres of land.He sold 4 acres to his Best Friend.The Best Friend then sold 1 Acre to a stranger the Mzee didn't like.The Mzee wanted that particular 1 Acre(that was sold to the stranger back).Do you think he got it back?
This is unfair Mobitelea's owners are getting away with free money
Life is unfair that why some people have first class degrees and are clerks while others have Certificates and are millionaires.Thats the case whether in USA or Kenya.
Apparently,this is the crux of Muthoni Wanyeki's Article in this week's East African.I respect Muthoni and she is one of the people i admire but i doubt her capacity to look at the big economic picture.
This is the best time to list Safaricom, you can never wait for the best time to do something..that time may never come.
What about the Privatization Act 2005?
It gives the Minister of Finance the power to Gazette it and decide when it shall come into effect.By the way Laws are never applied RETROSPECTIVELY.Do you know who the Minister of Finance is? i rest my case
The post above is by pesa tu and blogged here by assidous. I must give it to him, he has the real final word on the ownership controversy.
How many shareholders does Safaricom K Ltd have?
Two,-Telkom(K) Ltd(60% of Safaricom) and Vodafone (K) Ltd(40% of Safaricom).
What about Mobitelea?
Mobitelea is a shareholder in Vodafone(K) Ltd which is a Private Limited Company.
What about Mobitelea's stake in Safaricom?
Its an Indirect stake, Mobitelea owns 12.5% of Vodafone(K) Ltd while Vodafone Plc holds 87.5% of Vodafone(K) Ltd.Vodafone(K) Ltd main asset is the 40% shares in Safaricom(K) Ltd.
If you take 12.5% of 40% you get the 5% indirect stake Mobitelea has in Safaricom.
How was business was done in the Third World during the 20th Century?
In those days there were no worldwide Mergers and Acquisitions firms,lawyers or clients to perform proper due dilligence and show you the ropes.Think Morgan Stanley,Citibank,PWC and lately Rennaissance.Most firms were based in the WEst and 1 or 2 Asian Capitals i.e. HongKong and Tokyo.Mumbai was the name of some exotic perfume.
If you wanted to take over a local firm or go into a joint Venture with a Third World Government,you allied yourself with a local political operative and he did the 'due dilligence' opened the right doors and he got a stake in the new firm as his Partnership contribution.
********************************************************************************
Say NO! to poor service and substandard goods in Kenya.
Visit here and make your complaint at www.complain2me.wordpress.com
Fighting to have service that is our money's worth.
Join the fight.
********************************************************************************
If you doubt me just look at the list of top civil servants and politicians of the 1960s Kenya and compare that with their business interests.
Why the IPO must go own
The Safaricom IPO will ignite significant foreign interest that will grow our markets and put Kenya in focus of all the top markets.The market Growth will create more jobs for everyone and grow the economy.
If we stop the IPO we can get back Mobitelea's stake
Ha, Not a chance the Mobitelea stake is parked in a private company Vodafone(K) Ltd.Government cant interfere with private property that is unconstitutional
Let me put the point across using a story:
There was once an old mzee who had 10 acres of land.He sold 4 acres to his Best Friend.The Best Friend then sold 1 Acre to a stranger the Mzee didn't like.The Mzee wanted that particular 1 Acre(that was sold to the stranger back).Do you think he got it back?
This is unfair Mobitelea's owners are getting away with free money
Life is unfair that why some people have first class degrees and are clerks while others have Certificates and are millionaires.Thats the case whether in USA or Kenya.
Apparently,this is the crux of Muthoni Wanyeki's Article in this week's East African.I respect Muthoni and she is one of the people i admire but i doubt her capacity to look at the big economic picture.
This is the best time to list Safaricom, you can never wait for the best time to do something..that time may never come.
What about the Privatization Act 2005?
It gives the Minister of Finance the power to Gazette it and decide when it shall come into effect.By the way Laws are never applied RETROSPECTIVELY.Do you know who the Minister of Finance is? i rest my case
The post above is by pesa tu and blogged here by assidous. I must give it to him, he has the real final word on the ownership controversy.
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