[kictanet] Equity Given Go Ahead by CAK

Bernard Kioko bkioko at bernsoft.com
Mon Sep 22 18:36:11 EAT 2014


Change is the only permanent thing! 

-----Original Message-----
From: kictanet
[mailto:kictanet-bounces+bkioko=bernsoft.com at lists.kictanet.or.ke] On Behalf
Of Walubengo J via kictanet
Sent: Monday, September 22, 2014 6:30 PM
To: bkioko at bernsoft.com
Subject: Re: [kictanet] Equity Given Go Ahead by CAK

@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.h
tml
 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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