[kictanet] Safaricom Limited adjusts its tariffs

[Edith Adera]

With number portability in place and some providers having free calls (with minimum ksh 2 per day...permanently!)...I think it's quite clear what direction consumers will take!

Edith
________________
Edith Ofwona Adera
Senior Program Specialist
Climate Change & Water Program
International Development Research Centre | Centre de recherches pour le développement international
Regional Office for Eastern and Southern Africa
Tel: +254202713160 | Fax/Téléc: +254202711063 | Skype: edithadera
eadera at idrc.or.ke | www.idrc.ca | www.crdi.ca
________________________________________
From: kictanet-bounces+eadera=idrc.or.ke at lists.kictanet.or.ke [kictanet-bounces+eadera=idrc.or.ke at lists.kictanet.or.ke] On Behalf Of James Mbugua [jgmbugua at gmail.com]
Sent: 01 October 2011 12:16
To: Edith Adera
Cc: KICTAnet ICT Policy Discussions
Subject: Re: [kictanet] Safaricom Limited adjusts its tariffs

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
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> References
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> 1. http://bit.ly/oYOiHr
>

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KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.