[kictanet] Safaricom's Super Profits

Sat May 18 16:32:30 EAT 2013

As we look at the 'super profits', it might help to note that out of the
four mobile service providers in Kenya, it is only Safaricom that is making
profits (the last time I checked); not just some money, but big money! Why
this in a competitive and somehow liberalized industry? Is it that all the
other three MSPs have got the wrong strategy?

Who can help in such an situation? Can CCK, consumer protection entities
etc help?

One thing is for sure, it is not a sustainable approach to running an
industry: having a clear leader ( or is it a monopoly?) and others just
cheering spectators!

Regards,
Davis Onsakia

On Saturday, May 18, 2013, Ali Hussein wrote:

> Edith and all
>
> Super profits and all I think that Safaricom is reaping from a field where
> others are blind (the analogy bring that it is the one eyed king).
>
> Safaricom is definitely extremely sensitive to product innovation and
> working towards engaging their customers more. However my suspicion is that
> they haven't even started scratching the surface. Quality issues aside if
> they really really started monetizing their most critical asset (real time
> customer information and habits) and started putting them to use they will
> easily double the super profits.
>
> Safaricom is 'suffering' from the Network effect. Loosely defined is the
> lethargy and lack of incentive for customers like you and I to move to
> another network even as we complain about it's arrogance. They have been so
> successful in keeping you in their gilded garden that for you to move means
> that you are literally pushing yourself out of n ecosystem that works
> reasonably week.
>
> I'm not sure whether this is a regulator issue as it is a Market issue. Or
> maybe a combination of both? That is a case study waiting to be written.
> The history of regulation is littered with Governments attempts and
> ultimate failure to break up monopolies created not out of Government
> action but by sheer entrepreneurial and management chops. Cases that come
> to mind include:-
>
> 1. The Anti Trust Laws of the late 1890s in the US that broke up Standard
> Oil into bits and pieces. It took less than 50 years for the offspring of
> that juggernaut to dominate again.
>
> 2. The attempted and almost successful break up of Microsoft by
> Government. It took the market to make Microsoft irrelevant. Google,
> Facebook, Amazon anyone?
>
> 3. Recent noi
>
> Ali Hussein
> CEO | 3mice interactive media Ltd
> Principal | Telemedia Africa Ltd
>
> +254 713 601113
>
> "The future belongs to him who knows how to wait." - Russian Proverb
>
> Sent from my iPad
>
> On May 18, 2013, at 1:23 PM, otieno.barrack at gmail.com <javascript:_e({},
> 'cvml', 'otieno.barrack at gmail.com');> wrote:
>
> + 1 Walu,
> Speaking from an Internet Society perspective whose mission statement is
> the Internet for all, I think the Universal Access fund has to be used to
> create the right balance, I think too many Telcos are focusing on slicing
> Safaricoms Market share instead of venturing into the untapped and
> unprofitable market segments in the Bundu's, IMHO, therein lies the
> problem, we want to see whether the Universal Access fund board itasema, na
> itende.
>
> Best Regards
> Sent from my BlackBerry®
>
> -----Original Message-----
> From: Walubengo J <jwalu at yahoo.com <javascript:_e({}, 'cvml',
> 'jwalu at yahoo.com');>>
> Sender: "kictanet"
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> 'kictanet-bounces+otieno.barrack\x3dgmail.com at lists.kictanet.or.ke');>>Date:
> Sat, 18 May 2013 03:16:11
> To: <otieno.barrack at gmail.com <javascript:_e({}, 'cvml',
> 'otieno.barrack at gmail.com');>>
> Reply-To: Walubengo J <jwalu at yahoo.com <javascript:_e({}, 'cvml',
> 'jwalu at yahoo.com');>>
> Cc: KICTAnet - Media Editors Forum<mediaeditors at lists.kictanet.or.ke<javascript:_e({}, 'cvml', 'mediaeditors at lists.kictanet.or.ke');>>;
> Christoph Stork<christoph.stork at googlemail.com <javascript:_e({}, 'cvml',
> 'christoph.stork at googlemail.com');>>; Alison Gillwald<
> agillwald at researchictafrica.net <javascript:_e({}, 'cvml',
> 'agillwald at researchictafrica.net');>>; KICTAnet ICT Policy Discussions<
> kictanet at lists.kictanet.or.ke <javascript:_e({}, 'cvml',
> 'kictanet at lists.kictanet.or.ke');>>
> Subject: Re: [kictanet] [mediaeditors]  Safaricom's Super Profits
>
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> for people and institutions interested and involved in ICT policy and
> regulation. The network aims to act as a catalyst for reform in the ICT
> sector in support of the national aim of ICT enabled growth and development.
>
> KICTANetiquette : Adhere to the same standards of acceptable behaviors
> online that you follow in real life: respect people's times and bandwidth,
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-- 
Best Regards,
Davis M Onsakia
"One doesn't discover new lands without consenting to lose sight of the
shore for a very long time."
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