[kictanet] For those who think Safaricom is dominant think again..and think regional :)

Mon Jan 29 13:56:45 EAT 2018

Good points @ Kevin and Ali,

Actually until last year, it appears Safaricom had no interest in the
Regional Market. I must have overheard one of the Senior Executives say the
same in a meeting. That said , opening up the business to the region
requires the opening up of shareholding which can be quite complicated. The
fact that Orange could not make it in Kenya also demonstrates how peculiar
our market can be.

Regards

On Mon, Jan 29, 2018 at 12:36 PM, Kevin Kamonye via kictanet <
kictanet at lists.kictanet.or.ke> wrote:

> Mwendwa I actually fully concur with Ali's main point. I was simply
> raising notice on how these stock analysts sometimes talk up some company's
> shares for reasons that are best know to them.
>
> In my opinion, the boat that should have carried Safaricom into other
> markets sailed a long long time ago. Give me one country in which Safaricom
> could gain a significant return such as to justify the massive capital
> outlay that would be required. Right now the heavyweights in the industry
> are already established - MTN, Vodacom, Orascom, Orange. It is extremely
> unlikely that they would just sit and watch as we took over their markets.
>
> To further concur with Ali, we need to support Safaricom because I can see
> a future whereby most of the infrastructure owned by most Telcos will be
> acquired by the content providers - Google, Facebook etc. What they will
> then very likely do next is to contract the management of this
> infrastructure to those that have a proven track record of the highest
> levels of service delivery and innovation.
>
> I will even add point #5 to Ali's list - let us not complain too much
> about Safaricom's pricing model if we would want to continue to enjoy the
> benefits of being on the cutting edge of technology and in a sustainable
> way. Read the article below as regards to the Indian market.
>
> “Buy one, get one free.” “Buy two, get three free.” These may be good for
>> fast-moving consumer goods (FMCG) like soaps, shampoos, and shirts. But
>> that strategy, when applied to telecom—”Buy data plans, get voice calls and
>> messages free”—is destroying the sector.
>
>
>
>> “There was no telecom professional bred in this country. The bulk of the
>> people hired by the telecom sector more than 10 years ago were either from
>> Unilever, Pepsico, Coke, or Xerox,” Sanjay Kapoor, former CEO of India’s
>> biggest telecom firm, Airtel, told Quartz. And those strategies seem to
>> have run their course, he added.
>
>
> https://qz.com/1179770/indias-telecom-firms-are-bleeding-
> because-managers-sell-connectivity-like-toothpaste/
>
> Regards,
>
> Kevin
>
> On 29 January 2018 at 12:16, Mwendwa Kivuva <Kivuva at transworldafrica.com>
> wrote:
>
>> Kevin, because the Sonatel region has a smaller demographic and smaller
>> GDP than that of Safaricom, Safaricom should not venture to other regions?
>> Or rather, because Safaricom has a bigger market share that Sonatel, they
>> should sit pretty?
>>
>> Ali, I think Safaricom's regional footprint has been frustrated by her
>> largest shareholder, Vodafone Group PLC, who too have an interest in the
>> region, and they want to eat their cake alone. Remember Vodafone has taken
>> the mpesa brand all over the world (India, South Africa, Tanzania) without
>> the involvement of Safaricom.
>>
>>
>>
>> On Jan 29, 2018 11:34 AM, "Kevin Kamonye via kictanet" <
>> kictanet at lists.kictanet.or.ke> wrote:
>>
>> I am usually very wary of some of these talking head analysts and their
>> opinions.
>>
>> Safaricom is leagues ahead of Sonatel due to the underlying economic
>> factors that differentiate Kenya and Senegal combined together with Guinea,
>> Mali, Sierra Leone and Bissau).
>>
>> *Country / 2016 GDP / 2016 Growth Rate*
>>
>> *Kenya* 70.53 Billion USD ; 4.4%
>>
>> *Senegal* 14.77 Billion USD; 6.6%
>> *Guinea* 6.299 Billion USD ; 5.2%
>> *Mali* 14.05 Billion USD ; 4.8%
>> *Sierra Leone* 3.669 Billion USD ; 6.1%
>> *Bissau* 1.13 Billion USD ; 5.5%
>>
>> *Sonatel host countries total stats*
>> Total GDP 40 Billion USD
>> Total Population 52M
>> Average Growth 5.7%
>>
>> When we look at market penetration and market share, Sonatel already has
>> some very high numbers - as per their 2016 reports.
>> http://www.sonatel.com/wp-content/uploads/2017/02/Sonatel_20
>> 16_financial_results_EN.pdf
>>
>> As for the reports that indicate that Safaricom will suffer losses due
>> to more and MPESA transactions being to business numbers - rubbish.
>>
>> The biggest growth potential of African economies is in moving the
>> informal sector into the scope of the tax administration. By enabling this,
>> Safaricom is laying down the foundation for its own strong future growth.
>>
>> Regards,
>>
>> Kevin
>>
>> On 29 January 2018 at 08:39, Ali Hussein via kictanet <
>> kictanet at lists.kictanet.or.ke> wrote:
>>
>>> Listers
>>>
>>> I’ve always advocated for Kenyan Companies looking beyond the country to
>>> Africa at least. Here’s an interesting story of Sonatel, the Senegalese
>>> Telco that seems to be making waves in the investment circles. A snippet of
>>> the story below:-
>>>
>>> For Sonatel, there is an integrated regulatory and economic environment
>>> as well as a regional presence and availability of other Orange Group
>>> subsidiaries with which to have direct partnerships for purposes of
>>> remittances in SSA.
>>>
>>> It also notes Safaricom is increasingly doing more transactions on
>>> M-Pesa that relate to businesses as opposed to withdrawals by individuals.
>>>
>>> “We expect revenues to suffer as business transactions gain traction at
>>> a lower transaction charge than the declining withdrawals,” said Exotix.
>>>
>>> Read on:-
>>>
>>>
>>> https://www.businessdailyafrica.com/markets/marketnews/Exoti
>>> x-tips-foreigners-to-favour-firm-over-Safaricom/3815534-4282
>>> 002-f8gnyuz/index.html?utm_source=traqli&utm_medium=email&
>>> utm_campaign=bdafrica_newsletter
>>>
>>>
>>> *Ali Hussein*
>>> *Principal*
>>> *Hussein & Associates*
>>> +254 0713 601113 <0713%20601113>
>>>
>>> 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
>>>
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>> 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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>
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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
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-- 
Barrack O. Otieno
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Skype: barrack.otieno
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