[kictanet] When the Internet consumer market bites back...

[Harry Delano]

Hey Andre,
 
Plus, the main corporate market sector, where almost 90% of the competition
has been centred for a while now is quite saturated.
 
I think it's all taken now. What we remain to see in the interim and will
define shape of the market in this sector is -Pricing/Quality/Customer
service.
 
It means, customers are left with the choice to "hop" from one ISP to the
next, depending on the best "offering" available. There are no new markets..
 
Focus should also be decentralized, from Nairobi and other Cosmopolitan
towns which seem to enjoy the huge benefits from Broadband to the 
countryside...
 
Harry

  _____  

From: kictanet-bounces+harry=comtelsys.co.ke at lists.kictanet.or.ke
[mailto:kictanet-bounces+harry=comtelsys.co.ke at lists.kictanet.or.ke] On
Behalf Of Andrea Bohnstedt
Sent: Tuesday, March 23, 2010 10:18 AM
To: harry at comtelsys.co.ke
Cc: KICTAnet ICT Policy Discussions
Subject: Re: [kictanet] When the Internet consumer market bites back...


I'm with Tim on this. I haven't looked at the overall data yet, but
according to the BD articles and assuming they cite this correctly, some, by
no means all, customers may have spoken: 
'While AccessKenya's revenue was up 32 per cent from Sh1.5 billion to Sh2
billion last year, a slowdown in profit as a result of lower corporate IT
sales, last year, proved to be a major stumbling block for the firm.'

This doesn't actually say whether the growth in corporate IT sales has
slowed down, or the company's number of corporate clients has declined. 

In addition, corporate ITdoesn't appear to have been a focus: 
'AccessKenya is eyeing the opportunity to tap the increasing appetite for
Internet connectivity in the high-end residential and SOHO (Small offices
and home offices) segment.'

And the company doubled its investments in infrastructure: 
'Last year, AccessKenya spent Sh1 billion in investing activities compared
to Sh511 million in 2008.'



On 23 March 2010 10:04, McTim <dogwallah at gmail.com> wrote:


HI aki,

On Tue, Mar 23, 2010 at 7:31 AM, aki <aki275 at googlemail.com> wrote:
> Dear Listers,
>
> Sorry for the cross-posting and am adding my opinion.
>
> There is a story in Business Daily today titled " AccessKenya records 31
> p.c. drop in profit " . No matter what way you look at the article, the
> consumer has spoken.

I'm not sure this is necessarily so.  lower profit does not always
stem from fewer customers.

--
Cheers,

McTim
"A name indicates what we seek. An address indicates where it is. A
route indicates how we get there."  Jon Postel

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