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

Tue Feb 7 22:33:36 EAT 2017

@Walu

What strategic purpose would splitting Safaricom have on their business? I'm fundamentally opposed to government imposed splits. Let's look at one of the most famous splits:-

Standard Oil in the US. It was split into 34 companies by the justice department. The most prominent of these were Exxon, Mobil and Chevron. Many years later through 'Mergers and Acquisitions' the original company is now more or less back as ExxonMobil, whose CEO has incidentally been appointed by The Donald to be Secretary of State.

https://en.m.wikipedia.org/wiki/Standard_Oil

Having said that I think Mpesa remaining in Safaricom is stunting it's growth. But then that's their prerogative not anybody else's. I keep on saying that someone out there is quietly plotting to eat Safaricom's lunch. If they snooze.

Ali Hussein
Principal
Hussein & Associates
+254 0713 601113 

Twitter: @AliHKassim
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"We are what we repeatedly do. Excellence, therefore, is not an act but a habit."  ~ Aristotle

Sent from my iPad

> On 7 Feb 2017, at 6:55 PM, Walubengo J via kictanet <kictanet at lists.kictanet.or.ke> wrote:
> 
> Thnx George, Wash and GB for your questions...even though some of them may fit better under Day 1 theme - consumer issues. Either way, I am sure Safaricom is listening and will respond.
> 
> I just have one question for Safcom with respect to Competition.  Are they willing to:
>  
> a) Be split into several independent units? As in make the Mobile money business (MPESA) a separate and autonomous unit from their Voice and Data side of business? 
> 
> Or
> 
> b)  Open up MPESA service such that if I vuka(migrate) to competition e.g Airtel, I do not lose the MPESA facility?
> 
> Obviously this would be an affront to their 'stronghold' but sometimes it may spice up the market a bit.  This maybe necessary considering that their market share lead has not changed much over the last 10years. 
> 
> Which may point to a market failure or maybe they are just clever than everyone else :-).
> 
> walu.
> 
> 
> 
> 
> 
> From: george sidney ralak via kictanet <kictanet at lists.kictanet.or.ke>
> To: jwalu at yahoo.com 
> Cc: george sidney ralak <georgeralak at gmail.com>
> Sent: Tuesday, February 7, 2017 4:56 PM
> Subject: Re: [kictanet] Talk-2-Safaricom, Day 2 of 6:-Competition Issues
> 
> Hello,
> 
> I've been on postpaid since 2013, all that time, I have been receiving 100 Mbs per month, we are now in 2017, is there a way Safaricom can add the amount of bundles it gives to its postpaid customers? 100 Mbs cannot even last one day and to make it worse it, there is no way one can sambaza bundles to a postpaid number. Since I rarely exhaust the voice bundles given to me, maybe there should be a plan to choose which bundles to receive more than the other.
> 
> Lastly, to those unused voice bundles at the end of every month, instead of just wiping them out, and you don't carry them forward like you used to anymore, why don't you convert them to Bonga points instead.
> 
> Cheers.
> 
> PS: apologies if this doesn't fall under today's topic.
> 
> 
> On Tue, Feb 7, 2017 at 4:40 PM, Grace B via kictanet <kictanet at lists.kictanet.or.ke> wrote:
> I will ask a question on behalf of my teenager friend,  "If Safcom makes so much profit,  why can't it lower data costs?"
> On 7 Feb 2017 4:05 a.m., "Victor Kapiyo via kictanet" <kictanet at lists.kictanet.or.ke > wrote:
> Safaricom has over the years benefited from its current position, raking in billions in profits for its shareholders. As a public listed company, what has the company done so far to confer some of these benefits to the public, whether as part of its CSR, investments or approaches in business operations etc.?
> 
> Regards,
> 
> Victor K
> 
> On 7 Feb 2017 11:43, "Walubengo J via kictanet" <kictanet at lists.kictanet.or.ke > wrote:
> Eeih?
> 
> No comments on this dominance issue?  I thought it was quite hot the other week.
> 
> The major issue is to debate whether Safricom is dominant.  If so, is this affecting the market negatively in terms of competitors being unable to break this dominant position?  What options might there be to bring about a change? 
> 
> Keeping in mind the other argument, should there be any change required?
> 
> Toa maoni.
> 
> walu.
> 
> 
> 
> From: Walubengo J via kictanet <kictanet at lists.kictanet.or.ke >
> To: jwalu at yahoo.com 
> Cc: Walubengo J <jwalu at yahoo.com>
> Sent: Tuesday, February 7, 2017 8:16 AM
> Subject: [kictanet] Talk-2-Safaricom, Day 2 of 6:-Competition Issues
> 
> 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 (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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