[kictanet] FW: [DigAfrica] Kenya's Safaricom's year profit jumps 37 pct

Thu May 27 09:16:25 EAT 2010

Edith 

In  hindsight this should not be a surprise – it falls into a neat plan 

In late 2000, while researching for a  paper commissioned by Institute of
Economic Affairs on the emerging ICT sector, I had a chance  to interview
Michael Joseph.  The context then according to my notes   was , Safaricom
was newest kid on the block, Kencell was going full throttle for the high
end consumer and appeared  unstoppable  and Safaricom  seemed destined to
grope in the murky waters on terms set by others –- 

When I look at my discussion notes two theories stood out  that at the time
did not make sense – today they do

-          Theory 1 – You are an distinct creation compete with your self
----   that Safaricom overrun Kencell and then TKL is water under the
bridge. The combative nature to compete is ever more greater , not with
other  operators but with Safaricom itself. You are a distinct entity ,
create your space and  sing your song.   It is  an abundance based paradigm.
This theory debunks  Michael Porters competition theories based on scarcity
paradigm. There is enough for everyone. 

-          Theory 2 – wealth is in numbers  -----  this ran against Pareto
Principle of 80/20 or the rule of the vital few . the principle told us to
focus on the 20%, the rest will come and sure other operators followed this
principle and even   today is  a motivation of MNP by some proponents.
Safaricom overturned the pyramid and run for the 80%, and   today the other
20% have happily followed suit.  BOP as the market driver was born in Kenya
. 

At the time of the discussion in late 2000 , the import of this message did
not make sense , now it does.

So where will Safaricom be in 2 years from now ?, I think I need another
discussion with Michael Joseph  to get a feel of Theory 3.  Certainly the
notion of market share will be irrelevant in the regulatory parlance  first
in Kenya and later around the world ---  because  a market is a creation and
is not an absolute , we need to discover another term!!

Cheers 

MM

From: kictanet-bounces+mureithi=summitstrategies.co.ke at lists.kictanet.or.ke
[mailto:kictanet-bounces+mureithi=summitstrategies.co.ke at lists.kictanet.or.k
e] On Behalf Of Edith Adera
Sent: 26 May 2010 20:36
To: mureithi at summitstrategies.co.ke
Cc: KICTAnet ICT Policy Discussions
Subject: [kictanet] FW: [DigAfrica] Kenya's Safaricom's year profit jumps 37
pct

FYI

_________________

Edith Ofwona Adera

Senior Program Specialist

International Development Research Centre | Centre de recherches pour le
développement international

+254- 20- 2713160 ext 3406 | eadera at idrc.or.ke
<mailto:+1-613-696-3406eadera at idrc.or.ke>   | www.idrc.ca
<http://www.idrc.ca/>  | www.crdi.ca <http://www.crdi.ca/> 

Error! Filename not specified.

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From: DigAfrica at yahoogroups.com [DigAfrica at yahoogroups.com] On Behalf Of
chifu_wa_malindi [chifu2222 at gmail.com]
Sent: 26 May 2010 09:54
To: DigAfrica at yahoogroups.com
Subject: [DigAfrica] Kenya's Safaricom's year profit jumps 37 pct

Kenya's Safaricom's year profit jumps 37 pct

NAIROBI, May 26 (Reuters) - Kenya's Safaricom, the country's largest
telecoms operator, said on Wednesday pretax profit rose by 37 percent to
20.97 billion shillings ($262.6 million) for its year ended March.

The firm, which is also east Africa's largest by market value and part-held
by Britain's Vodafone, said the market was at 50 percent penetration and the
greatest growth opportunities lay in data services.

(Reporting by Duncan Miriri and Helen Nyambura-Mwaura; Editing by Richard
Lough) ($1=79.85 Kenyan Shilling) Keywords: SAFARICOM/

(Email: nairobi.newsroom at reuters.com <mailto:nairobi.newsroom%40reuters.com>
; Tel: +254 20 222 4717)

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