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

Odhiambo Washington odhiambo at gmail.com
Tue Feb 7 22:54:08 EAT 2017


I knew it!

With all the discussions going on, we'll at some point start speaking
for/on behalf of  Safaricom :-)


On 7 February 2017 at 22:33, Ali Hussein via kictanet <
kictanet at lists.kictanet.or.ke> wrote:

> @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
>
> Skype: abu-jomo
>
> LinkedIn: http://ke.linkedin.com/in/alihkassim
>
> "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
> <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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-- 
Best regards,
Odhiambo WASHINGTON,
Nairobi,KE
+254 7 3200 0004/+254 7 2274 3223
"Oh, the cruft."
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