[kictanet] Yu acquisition proposal to regulator

[Ali Hussein]

Listers

Yu has been bleeding red ink since it launched. It was inevitable. No public review will change that. The Network Effect is clearly at play here with Safaricom. None of the other players are profitable. Orange is being kept afloat by GoK and the mother company in France. Airtel considers Kenya a loss leader because of its 'strategic' nature in Africa and hence cannot abandon it. Not sure how long that will continue.

The interesting bit here is that Orange may eventually buy Safaricom because of some actions in far off cities that we have no control over...that for me is the real risk..

Ali Hussein

+254 0770 906375 / 0713 601113

"I fear the day technology will surpass human interaction. The world will have a generation of idiots".  ~ Albert Einstein

Sent from my iPad

> On Mar 3, 2014, at 11:20 PM, ICT Researcher <ict.researcher at yahoo.com> wrote:
> 
> For starters, the company's assets true worth need to be independently established and its outstanding liabilities audited. Mere reported "spend a combined $100 million" inflated with 'sweatheart deal' exit premium does not in any way reflect the much lower true worth of the exiting business persons which no doubt a consortium of Kenyans investors can raise and potentially enable consumers to migrate enmasse to 100 p.c. "MKenya Network":-) 
> 
> 
> 
> On Monday, March 3, 2014 9:44 PM, "Wambua, Christopher" <Wambua at cck.go.ke> wrote:
> The regulator has just received the application. We are in the process of reviewing the application with a view to deciding the way forward.  It is therefore too early to subject the application to public consultation.  
> 
> Wambua
> Sent from my BlackBerry 10 smartphone.
> From: ICT Researcher
> Sent: Monday, 3 March 2014 21:11 PM
> To: Wambua, Christopher
> Reply To: ICT Researcher
> Cc: KICTAnet ICT Policy Discussions
> Subject: [kictanet] Yu acquisition proposal to regulator
> 
> Airtel, Safaricom seek to buy Essar’s Yu in Kenya - Safaricom will get Yu’s infrastructure, while Airtel is expected to acquire Yu’s subscriber base <http://www.livemint.com/Industry/BZZuR21BJsoJf6jksBhnVN/Airtel-Safaricom-seek-to-buy-Kenyan-rival-Essars-Yu.html>
> 
> Considering the profoundly adverse Triopoly consumer choice consequences,
> Should the regulator not initiate a public consultation before decision making?
> 
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> 
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