[kictanet] Equity Given Go Ahead by CAK

Mon Sep 22 18:29:38 EAT 2014

@Charles,

Interesting views.  I dont speak for Equity - and am not even a MEMBER (their customer).  However, they have the following going for them.

1) they do have their OWN SIM card targetting their 8m banking customers.  They can actually make money out their core group of customers using their mobile virtual network (riding on Airtel telco infrastructure i believe).
2) the thin-SIM technology is just a nice option for their 8m customers AND the 20+million Safaricom customers. 
3) indeed Safcom can play dirty but I am sure they wont because (a) they can take on Equity challenge and (b) the regulator seems more ready than ever to pounce on them (recall regulator has been "looking" for them over quality issues  :-).

Remember, this looks like a mobile money battle, but the real deal is the collateral damage it is likely to cause in the voice market because once a Safaricom customer mounts the thin SIM Card and discovers that they can make cheaper calls/sms with it without losing their MPESA functionality...they will actually be having their cake (MPESA) while eating it (making Cheaper calls on the Equity Mobile virtual network). 

Essentially, Equity is breaking a small gap into the Safaricom defensive wall(MPESA) and once in, even the data-market may eventually be free for all i.e. #checkmate.

walu.

--------------------------------------------
On Mon, 9/22/14, Charles Kimani via kictanet <kictanet at lists.kictanet.or.ke> wrote:

 Subject: Re: [kictanet] Equity Given Go Ahead by CAK
 To: jwalu at yahoo.com
 Date: Monday, September 22, 2014, 4:44 PM

 I
 think the thin sim strategy is brilliant...in
 theory.
 However, I am also
 wondering just how wise it is to place the success of your
 business model at the mercy of a hostile, powerful and
 uncooperative business rival. 
 What if - 6 months after launch, for
 example - Safaricom decide to upgrade all their sim cards
 (genuinely or otherwise) just when Equity is in the middle
 of a critical (probably expensive) product
 rollout? 
 What if
 Safaricom customer service and dealer/retail channels start
 advising subscribers who are having issues with their lines
 that the thin sim is the cause of their problems and show
 them how to remove it?
 How will Equity map their processes
 and logistics with the Safaricom SIM replacement processes?
 Will Equity subscribers need to remember to make an extra
 stop at an Equity outlet to have their thin sim re-attached
 once they do a sim swap? How easy is it to attach these thin
 sims?
 We have
 previously seen smart sabotage tactics bring down SAB Miller
 ambitions in the Kenyan market. Equity - in my opinion - is
 giving too much firepower to a determined competitor. It
 might be cheaper in the long run to just invest in own SIM
 and take Safaricom head-on.
 Regards,Charles
 On Mon, Sep 22, 2014 at
 4:18 PM, Dennis Kioko via kictanet <kictanet at lists.kictanet.or.ke>
 wrote:
 Meanwhile, I did get the Equitel SIM Card
 (haven't seen the infamous Thin SIM). So far, here's
 my experience with the same. http://www.infotake.co.ke/2014/09/how-does-equity-banks-equitel-work.html 
 On 22 September 2014 16:11, Barrack
 Otieno via kictanet <kictanet at lists.kictanet.or.ke>
 wrote:
 Sometimes
 diversification leads to loss of focus. Interesting
 discussions but let us see if this scenario will change some
 of this Principles that have evolved over time. 

 Best Regards

 On Mon, Sep 22,
 2014 at 3:56 PM, Bernard Kioko via kictanet <kictanet at lists.kictanet.or.ke>
 wrote:
 I have noted media reports
 indicating Equity has been granted go-ahead by CAK to
 operate with Thin-Sim cards. Game changing I
 suppose.  

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