[kictanet] Talk-2-Safaricom, Day 2 of 6:-Competition Issues

[Timothy- Coach- Oriedo]

My question on today's topic.

Are Frenemy and Coopetion terms alien to Safaricom's strategy?

I observe aggressive canibalization forward,  backward,  laterally and
upwards. With previous moves of backward integration to own  infrastructure
distribution - laying out of own fibre capacity reducing lease to capacity
and forward integration of remodelling the airtime / scratchcards product
distribution structure of their dealerships making it less lucrative for
them to operate.

Laterally through launch of peripheral services that would rather belong to
their business partners email.e.g mobile money-banking, the big box-media
etc.

Isn't it unfair to compete with your suppliers and clients in the name of
value chain innovation ?

Lastly apart from mpesa transaction of less than 100 Bob,  Please Call Me
and checking for airtime balance which is the other Freemium service that
safaricom is know for?


Regards

Timothy Oriedo

about.me/Timoriedo



On 7 Feb 2017 8:18 am, "Walubengo J via kictanet" <
kictanet at lists.kictanet.or.ke> wrote:

> We wish to thank all those who managed to contribute on Day 1, Consumer
> Issues.  Feel free to throw in some belated questions for Day1 - as long as
> you keep the relevant subject line.
>
> Today we move onto Day2 issues that deal with competition/ market
> dominance issues.
>
> The current data from CA
> <http://www.ca.go.ke/images/downloads/STATISTICS/Sector%20Statistics%20Report%20Q1%202016-2017.pdf>
> (Q1, 2016-17) could be a useful guideline for the dominance debate. It  gives
> Safcom the following market shares:-
>
> a)    Mobile Subscriber population (69% of all subscribers, closest rival
> has 17.5%)
> b)    Voice Traffic (76% of all mobile voice traffic, closest rival is at
> 13.8%)
> c)    Data/Internet Subsector, (63.2% of mobile internet subscriptions,
> closest rival is at 21%)
> d)    Mobile Money Transactions ( 81% of all mobile money transactions,
> closest rival is at 16%)
>
> I am sure we cannot ask or blame Safaricom for what it may consider a
> successful state of affairs :-)
>
> So please share your perspective as to whether or not Safaricom is
> dominant in the following sub-sectors and whether or not some intervention
> is required from the regulator in as far as making the market more
> competitive.
>
> Lets have your views, floor is open.
>
> ----thematic areas---
> 1. Consumer Issues Day,
> 2. Competition Issues Day,
> 3. Innovators, Innovations & Suppliers Day,
> 4. Infrastructure & Universal Access Day,
> 5. Technology & Elections Day
>
>
>
>
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