[kictanet] Safaricom Limited adjusts its tariffs

[James Mbugua]

Since I was with Collymore qhen he made the announcement, I can say
this: it was not an easy decision for Safaricom to make.
I totally disagree with some of their data pricing plans but I see the
logic of the retail voice tariff increase.
The company has 2100 plua base stations many on own masts. Exh of them
needs a standby generator to keep it runnuning in case Kenya Power
does what it does best: plunge people into darkness.
Reason 2: Kenya Airways, the only other company besides SafCom,
Kenolkobil and Kenya Power that generates a billion dollars a year, is
not entering dedicated cargo business blindly.
One of the big imports from the Far East is telecom equipment, a lot
of it by or for Safaricom. With the Kenya Shilling sliding wildly,
Safaricom is ending up paying a lot more than it budgeted, not just
for the equipment but also for the transport becuase of fuel.
The company did not say if it will increase or reduce tariffs if and
when the current economic environment changes, my guess would be yes
to an increase if inflation keeps rising and the Shilling continues to
slide.
We are looking to the US to announce a dip into recession which would
plunge crude prices by 20-30 USD per barrel the same day. It would
begin to solve our currency issues.

On 9/30/11, waudo siganga <emailsignet at mailcan.com> wrote:
> Since we are in a competitive environment I would expect news of
> individual operators changes in price to be useful only for
> purposes of informing consumers to take decisions. The importatnt
> thing is that no operator should be stopped from reducing or
> increasing their prices as they wish. My own belief is that the
> price elasticity of demand for mobile voice  is fairly negative,
> especially given that an individual consumer can run multiple
> SIMS. Let's wait and see.
>
> Waudo
>
> On Friday, September 30, 2011 4:40 PM, "Harry Hare"
> <harry at africanedevelopment.org> wrote:
>
> This has been long coming  [1]http://bit.ly/oYOiHr
> Enjoy your weekend.
>
> Harry
> _______________________________________________
> kictanet mailing list
> kictanet at lists.kictanet.or.ke
> http://lists.kictanet.or.ke/mailman/listinfo/kictanet
>
> Unsubscribe or change your options at http://lists.kictanet.or.ke/mailman/
> options/kictanet/emailsignet%40mailcan.com
>
> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform fo
> r people and institutions interested and involved in ICT policy and regula
> tion. The network aims to act as a catalyst for reform in the ICT sector i
> n support of the national aim of ICT enabled growth and development.
>
> KICTANetiquette : Adhere to the same standards of acceptable behaviors onl
> ine that you follow in real life: respect people's times and bandwidth, sh
> are knowledge, don't flame or abuse or personalize, respect privacy, do no
> t spam, do not market your wares or qualifications.
>
> References
>
> 1. http://bit.ly/oYOiHr
>