[kictanet] [Skunkworks] Are we letting the PS get away with this too?

[Walubengo J]

Here are my thoughts.

The PS is right about predatory pricing never aimed at growing the Industry.  For those who were "alive" at the beginning of the web-browser wars in early 1990s. Netscape was King. Then Microsoft came in and gave away its product Internet Explorer(IE) - for free. Everyone was happy - until they realized they were paying for the Microsoft IE through other means (by buying for the OS for example). But by then Netscape as a competitor was as dead as the Dodo. Microsoft Mission accomplished.

Folks, Airtel is not here because they love giving free things. I am not privy to their Strategy but it can be read by anyone.  Their aim is not to grow/extend the Service, but rather to eat Safaricom's lunch. At a consumer level, nothing really wrong with that and infact it is Christmas time for consumers.  BUT at a national level, what you have is that the 20million subscribers you currently have in the country, will remain 20million subscriber five years later.  Only that half of them will be sitting on Airtel's network and the other half will be with "Others". Net growth for Kenya? =ZERO

Airtel's strategy wont kill the mobile industry, but believe you me, it will stiffle its growth in the long run, because the returns to the investors will not be sufficient to sustain operations, let alone extend the network or pay for innovation.

That said, as a consumer, Airtel's offer is truly irresistible and worth considering.  But as a scholar, I do know, and agree that it is not good for the industry in the long run.

walu.


--- On Tue, 1/18/11, Odhiambo Washington <odhiambo at gmail.com> wrote:

From: Odhiambo Washington <odhiambo at gmail.com>
Subject: Re: [kictanet] [Skunkworks] Are we letting the PS get away with this too?
To: jwalu at yahoo.com
Cc: "KICTAnet ICT Policy Discussions" <kictanet at lists.kictanet.or.ke>
Date: Tuesday, January 18, 2011, 1:22 PM



On Tue, Jan 18, 2011 at 1:18 PM, Barrack Otieno <otieno.barrack at gmail.com> wrote:


You have a point Brainiac, there are many factors in your argument which need to be tackled and as such we may need expert opinion on some issues, a corporate entity is treated as a person  and as the saying goes one mans meat is another mans poison, what are the implications of certain moves on new market entrants? How will the other Telcos survive in the market?, this is where regulation comes in to ensure a piece of cake for everyone. 


Before making this debate so complicated, is Airtel's move interpreted as a means towards crippling the mobile industry?Why is this position not being applied on the Internet Service Provision industry then? We always heard promises of "prices will come down" but when they do now, the govt is gonna lose revenue? Puleease!



-- 
Best regards,
Odhiambo WASHINGTON,
Nairobi,KE
+254733744121/+254722743223
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Damn!!




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