[kictanet] Airtel Plans Africa Exit

Mon Jan 30 11:55:38 EAT 2017

Ngigi and all

:-)

There's no doubt that sometimes Safaricom misbehaves. But then that's human nature. No one is perfect and no one said business was for the faint hearted. :-)

Lobbying isn't the exclusive preserve of Safaricom. All its competitors had the same deep pockets to do what needed to be done. They were simply out smarted.

Check what Wananchi Online did to reinvent themselves. There was once an 800 pound Gorilla called Africa Online. They were a behemoth towering all over us across Africa. 

Wako wapi sasa?  (Where are they now?) 

Markets are simply ruthless and unforgiving. And I will hazard a guess:-

If Safaricom doesn't remain focused and execute better than the competition we will be discussing them in exactly the same way we are now discussing their competitors. Reminds me of the African story about the African Savannah..

'Every day an antelope wakes up and he knows that he must outrun at least one other antelope to remain alive..'

I think we worry too much about this Market Dominance thing. There's no such thing. That term simply means:-

'Market dominance is a measure of the strength of a brand, product, service, or firm, relative to competitive offerings. There is often a geographic element to the competitive landscape...' (Wikipedia)

When did that become a crime? Why punish someone/something for working hard? :-)

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 30 Jan 2017, at 11:13 AM, Ngigi Waithaka via kictanet <kictanet at lists.kictanet.or.ke> wrote:
> 
> Mblayo,
> 
> I knew they were doomed (CCK) when they were asked to first hire a consultant to review whether there is such a thing as market dominance, then another consultant to define market dominance, then another consultant to review whether Safaricom is market dominant, and then another consultant to review whether should Safaricom be market dominant ,whether any penalties should accrue
> 
> :-) :-) :-)
> 
> That's what you hire Lobbyists for! Get you 10 years, by which time all your competition will be dead!
> 
> Rgds
> 
>> On Mon, Jan 30, 2017 at 10:38 AM, Brian Munyao Longwe via kictanet <kictanet at lists.kictanet.or.ke> wrote:
>> .....and the way CA (formerly CCK) were hammered when they tried to do a market intervention on the basis of Safaricom dominance....SMH....
>> 
>>> On Mon, Jan 30, 2017 at 9:20 AM, Ngigi Waithaka via kictanet <kictanet at lists.kictanet.or.ke> wrote:
>>> Ali,
>>> 
>>> Analyzing why Safaricom has dominated this market in such Key areas as Mobile Telephony, Payment Services etc is probably something that would qualify for a PHD thesis.
>>> 
>>> Here's what I know though:
>>> 1. Are Safaricom's Customers happy? Answer is, do they have a choice? Go back to Microsoft's heyday, were you actually really happy with Windows '98? Did you have a *choice*?
>>> 
>>> 2. Yes, Safaricom could have better services than Airtel & Telkom, although I doubt, having been a user of both Safaricom & Airtel over 15yrs. Even if they were better, how do you reconcile that they are maybe 4 times the size of the rest of the competition? Are they 4x better than say Airtel? I doubt.
>>> 
>>> Now, onto things MPesa, I think Safaricom does MPesa a great injustice of not spinning it off. I want MPesa (with all its associated services) on my Airtel line.
>>> 
>>> MPesa needs to be listed on NASDAQ! MPesa needs to be the third choice globally after VISA & Mastercard!
>>> 
>>> But there's the not so small matter of who actually owns MPesa!
>>> 
>>> Onto matters regulation, if I was CBK, I would be very concerned if one such firm had that much 'power' over the money transfer market.
>>> 
>>> Rgds
>>> 
>>>> On Mon, Jan 30, 2017 at 9:10 AM, Ali Hussein <ali at hussein.me.ke> wrote:
>>>> Ngigi 
>>>> 
>>>> :-)
>>>> 
>>>> The issue of Mobitelea aside (because we will really never know how that went down) Safaricom is simply better at everything:-
>>>> 
>>>> 1. Their lobbying is simply superior and a thing of beauty to watch. Lobbying is an acceptable practice the world over. Please don't complain when your competitor is doing a better job at it than you..
>>>> 
>>>> 2. Which industry is Safaricom in? Energy? (Mkopa Solar with 500k subscribers simply won't have existed without the symbiotic relationship they have with Mpesa. And Safaricom skims off the top as per agreement); Banking? CBA without Mshwari is a shell; Payments?  Lipa na Mpesa is giving Visa and Mastercard a run for their money; TV? Zuku is about to feel real competition. And the list goes on.
>>>> 
>>>> 3. I'm keen to see the Dominance Report because I think we need to expand our thinking. I don't believe there is anyone today who has Dominance in any particular area at least not in the traditional way we have defined Dominance.
>>>> 
>>>> 4. The thing of course to watch is abuse of Market Dominance.  And this in itself a slippery slop. Once The US Government tried to break up Microsoft. What the Government couldn't do the Market did. Free Markets are the greatest equalizer.
>>>> 
>>>> Let us be careful what we wish for. In as long as the customer is generally happy we have nothing to fear. 
>>>> 
>>>> 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 30 Jan 2017, at 8:29 AM, Ngigi Waithaka <ngigi at at.co.ke> wrote:
>>>>> 
>>>>> Ali,
>>>>> 
>>>>> The only palatable End Game; Equitel buys off Airtel Kenya, combines it with Helios stake @Telkom
>>>>> 
>>>>> Massive innovation thereafter would get back some respectable market share.
>>>>> 
>>>>> Truth be told, Safaricom's cozzyiness with GoK has helped it along big time. I dare say if Kencell has ceded 10% to Mobitelea, as Safaricom was more than glad to do, we'd probably be speaking a different story right now!
>>>>> 
>>>>> What these foreign firms investing in Africa need to remember is.......
>>>>> 
>>>>> THIS IS AFRICA!
>>>>> 
>>>>>> On 28 Jan 2017 8:40 a.m., "Ali Hussein via kictanet" <kictanet at lists.kictanet.or.ke> wrote:
>>>>>> Listers
>>>>>> 
>>>>>> Another one bites the dust?
>>>>>> 
>>>>>> I'm really curious as to whats going on in the Telco sector.
>>>>>> 
>>>>>> Bharti Airtel has announced that it will be exiting 14 African countries within a year. The affected countries include: Chad, Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Rwanda, Seychelles, Tanzania, Uganda and Zambia.
>>>>>> 
>>>>>> The telecom operator is faced with poor performance across those markets. Two years ago, when Airtel began talks to sell off its operations in Burkina Faso, Chad, Congo Brazzaville and Sierra Leone to Orange, the company had stated that it wouldn’t be exiting Africa.
>>>>>> 
>>>>>> Airtel plans Africa exit
>>>>>> 
>>>>>> Is the African market too competitive or is the regulatory environment skewed towards a few players?
>>>>>> 
>>>>>> Ali Hussein
>>>>>> Principal
>>>>>> Hussein & Associates
>>>>>>  
>>>>>> Tel: +254 713 601113
>>>>>> Twitter: @AliHKassim
>>>>>> Skype: abu-jomo
>>>>>> LinkedIn: http://ke.linkedin.com/in/alihkassim
>>>>>> 
>>>>>> 13th Floor , Delta Towers, Oracle Wing,
>>>>>> Chiromo Road, Westlands,
>>>>>> Nairobi, Kenya.
>>>>>> 
>>>>>> Any information of a personal nature expressed in this email are purely mine and do not necessarily reflect the official positions of the organizations that I work with.
>>>>>> 
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>>>>>> 
>>>>>> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.
>>>>>> 
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>>> 
>>> 
>>> 
>>> -- 
>>> Regards,
>>> 
>>> Waithaka Ngigi
>>> Chief Executive Officer | Alliance Technologies | MCK Nairobi Synod Building
>>> T +254 20 525 0750 |Office Mobile: +254 716 201061 | M +254 737 811 000
>>> www.at.co.ke
>>> 
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>>> 
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>> 
>> 
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>> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.
>> 
>> KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
> 
> 
> 
> -- 
> Regards,
> 
> Waithaka Ngigi
> Chief Executive Officer | Alliance Technologies | MCK Nairobi Synod Building
> T +254 20 525 0750 |Office Mobile: +254 716 201061 | M +254 737 811 000
> www.at.co.ke
> _______________________________________________
> kictanet mailing list
> kictanet at lists.kictanet.or.ke
> https://lists.kictanet.or.ke/mailman/listinfo/kictanet
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> Facebook: https://www.facebook.com/KICTANet/
> 
> Unsubscribe or change your options at https://lists.kictanet.or.ke/mailman/options/kictanet/info%40alyhussein.com
> 
> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.
> 
> KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
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