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

Wed Jan 19 10:32:59 EAT 2011

During the previous Airtel price change to 3/- per minute, Safaricom stated that they will not fight a price war on voice because the future is in data. How is it that when Airtel make another change in voice "on-net" tariff, Safaricom is crying foul? 

The recent quality survey by CCK giving Airtel a lead over Safaricom could be the trigger, with Airtel trying to take advantage of this new position and Safaricom fearing to face the consequences of inferior quality service. Let each player come out with their strategy and fight it out at the market place. Meanwhile, as consumers, lets enjoy as market forces sort out the telco strategies.

Regards,
Jotham

--- On Tue, 1/18/11, Leonard Mware <mleonardo at yahoo.com> wrote:

From: Leonard Mware <mleonardo at yahoo.com>
Subject: Re: [kictanet] Are we letting the PS get away with this too?
To: jokilimo at yahoo.com
Cc: "KICTAnet ICT Policy Discussions" <kictanet at lists.kictanet.or.ke>
Date: Tuesday, January 18, 2011, 11:32 AM

I understand where Dr. Ndemo is coming from being the PS. But as a consumer ... I will 'eat' while it last. Why should I spend a sleepless night thinking about telcos collapsing unless I am an investor? The collapse (if it does happen though I doubt it can happen) may just as well give rise to new and more innovative competitors to Airtel! Market forces should dictate, as for milk cows, maybe they have reached the top of the curve and its time to go down.
As for the taxman .. think, think, think!
;)

--- On Tue, 1/18/11, Agosta Liko <agostal at gmail.com> wrote:

From: Agosta Liko <agostal at gmail.com>
Subject: Re: [kictanet] Are we letting the PS get away with this too?
To: mleonardo at yahoo.com
Cc: "KICTAnet ICT Policy Discussions" <kictanet at lists.kictanet.or.ke>
Date: Tuesday, January 18, 2011, 6:29 PM

Guys.

How about we just let the prices go down till the govt has to set
prices ? Or till the Govt supports MNO's (like posta and telkom for a
loooooong time)

Seriously, the same peeps who were complaining about call costs 3
years are worried about the telcos collapsing.

This is the same language we heard when  ISP's we asked to reduce
bandwidth prices ...

Unsustainable :)

On 1/18/11, John Kieti <jkieti at gmail.com> wrote:
> Hi Walu and other esteemed Kenyans,
>
> This debate is interesting. As mentioned earlier by someone, the debate
> would be more enlightening if the cost structure of these MNOs had been in
> the public domain. But all is not lost; there are some basic parameters
> already in the public domain ie. (1) Safaricom's dominant position of about
> 77% market share and (2) Airtel's low price strategy including their 1 bob
> on-net offer in an attempt to eat into Safaricom's market share. It appears
> a little premature then to raise a concern of Anti-Trust against a
> non-dominant player, when they have not even achieved a half of the dominant
> player's market share.
>
> The current cost structure and profit margins for voice, SMS and all other
> product offerings is what we really need to understand before going into any
> conclusion on long term sustainability. It seems easy to see that brand
> loyalty and patriotic sentiments are strong everywhere this debate comes up
> but it might also help to see these harder facts.
>
> Lastly, in today's dynamic economic environment, one has to either innovate
> or die - and our dear Safaricom has demonstrated substantial competence on
> this. It then appears that innovation is what will sustain growth of the
> industry - really not regulation and protectionism.
>
> Best regards
>
> On Tue, Jan 18, 2011 at 6:09 PM, Walubengo J <jwalu at yahoo.com> wrote:
>
>> Harry, tough questions you have and the answers may most likely neutralize
>> my argument. But the bigger point is/was that certain type of competitive
>> tactics can be counterproductive when looked at from a Macro perspective.
>> Yes, you (Airtel) wins todays battle, but someone bigger than Safcom will
>> lose the war.
>>
>> With the  Microsoft Case- European Courts ruled that their tactic was
>> anti-competitive and they were forced to seperate their Browser from their
>> OS, rather than sell as a bundle. But I think it was a case of too little
>> too late.  Did internet numbers go down? probably not since Internet
>> numbers
>> do depend on more factors other than just Browsers.
>>
>> But for the mobile industry, their growth and expanse does depend on
>> revenues. I can forcasts that VOICE Revenue generated from all players
>> might
>> be the same as last year because the voice industry may not grow - it will
>> simply be shared out.. And after the price-wars are over and an
>> equilibrium
>> is established (maybe Airtel  50% others 50%) it will dawn on everyone
>> that
>> they incoming revenue streams is insufficient to deliver expansion or
>> extend
>> the services outside their current levels.
>>
>> walu.
>>
>>
>>
>>
>>
>> --- On *Tue, 1/18/11, Harry Hare <harry at africanedevelopment.org>* wrote:
>>
>>
>> From: Harry Hare <harry at africanedevelopment.org>
>> Subject: Re: [kictanet] [Skunkworks] Are we letting the PS get away with
>> this too?
>> To: "Walubengo J" <jwalu at yahoo.com>
>>
>> Cc: "KICTAnet ICT Policy Discussions" <kictanet at lists.kictanet.or.ke>
>> Date: Tuesday, January 18, 2011, 5:22 PM
>>
>> Walu good analogy with Netscape and MS IE. However
>>
>>    1. Did the Internet die with the death of Netscape?
>>    2. Did the Internet numbers stay constant with the death of Netscape?
>>    3. Did Microsoft marketshare drop?
>>    4. Did innovation on the internet stop?
>>
>> Guys, let get real, this is business…natural selection comes into play.
>>
>> Kindest Regards
>>
>> Harry Hare
>> Director
>> *
>> eDevelopment House  : :  604 Limuru Road
>> * Old Muthaiga  : : P O Box 49475 00100
>> Nairobi : : Kenya
>> T +254 20 3741646/7 : :  C +254 725 650044
>>
>> Training :  : Research:  :Consultancy:  : Publishing
>>
>> From: John Walubengo
>> <jwalu at yahoo.com<http://mc/[email protected]>
>> >
>> Date: Tue, 18 Jan 2011 05:35:58 -0800 (PST)
>> To: Harry Hare
>> <harry at africanedevelopment.org<http://mc/[email protected]>
>> >
>>
>> Cc: KICTAnet ICT Policy Discussions
>> <kictanet at lists.kictanet.or.ke<http://mc/[email protected]>
>> >
>> Subject: Re: [kictanet] [Skunkworks] Are we letting the PS get away with
>> this too?
>>
>> 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<http://mc/[email protected]>
>> >* wrote:
>>
>>
>> From: Odhiambo Washington
>> <odhiambo at gmail.com<http://mc/[email protected]>
>> >
>> Subject: Re: [kictanet] [Skunkworks] Are we letting the PS get away with
>> this too?
>> To: jwalu at yahoo.com <http://mc/[email protected]>
>>
>> Cc: "KICTAnet ICT Policy Discussions"
>> <kictanet at lists.kictanet.or.ke<http://mc/[email protected]>
>> >
>> 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
>> _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
>> Damn!!
>>
>>
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>
>
> --
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