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<DIV align=justify><FONT face=Calibri>I like Andrea's analytical view over
AK's 2009 financial results. What some of the listers missed from the
report is one division (IT) recorded losses while that of "Internet" recorded
profits with the net resulting into losses. Also we must recognise that the
company had increased revenue by 32%, so it would appear to me that it could
have charged a large protion of its investment costs to the financial year
2009, yet the benefit may accrue for more than one year. Otherwise I share
the concern that the internet/data market is getting more and more competitive,
competing with the same companies with ownership in fibre
optic. </FONT></DIV>
<DIV align=justify><FONT size=2 face=Arial></FONT> </DIV>
<DIV align=justify><FONT face=Calibri>Cheers,</FONT></DIV>
<DIV align=justify> </DIV>
<DIV align=justify><FONT face=Calibri>Akich Kwach</FONT> </DIV>
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style="BORDER-LEFT: #000000 2px solid; PADDING-LEFT: 5px; PADDING-RIGHT: 0px; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px">
<DIV style="FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV
style="FONT: 10pt arial; BACKGROUND: #e4e4e4; font-color: black"><B>From:</B>
<A title=andrea.bohnstedt@ratio-magazine.com
href="mailto:andrea.bohnstedt@ratio-magazine.com">Andrea Bohnstedt</A> </DIV>
<DIV style="FONT: 10pt arial"><B>To:</B> <A
title=kwach@archway-productions.com
href="mailto:kwach@archway-productions.com">kwach@archway-productions.com</A>
</DIV>
<DIV style="FONT: 10pt arial"><B>Cc:</B> <A
title=kictanet@lists.kictanet.or.ke
href="mailto:kictanet@lists.kictanet.or.ke">KICTAnet ICT Policy
Discussions</A> </DIV>
<DIV style="FONT: 10pt arial"><B>Sent:</B> Tuesday, March 23, 2010 11:05
AM</DIV>
<DIV style="FONT: 10pt arial"><B>Subject:</B> Re: [kictanet] When the Internet
consumer market bites back...</DIV>
<DIV><BR></DIV>Aki, those are different things: <BR><BR>What is Access going
to do? No idea. Ask them. Not my point. <BR><BR>I didn't say the article was
negative or unimportant. I just disagreed with your 'the customer has spoken'
conclusion, as that wasn't the logical conclusion from the article. A 30% drop
in profits is not necessarily the result of customers leaving in great numbers
because they are dissatisfied. <BR><BR>According to the data cited in the
article, it is partly the consequence of significant infrastructure
investments, and POSSIBLY a decline in corporate customers. That is not clear.
Maybe you could fish out the Access Kenya statement and check whether they
just had a slowdown in the growth rate of corporate clients, or whether that
number, or the turnover in that segment fell? <BR><BR>Yes, competition is a
good thing, I agree with you on that. <BR><BR><BR>
<DIV class=gmail_quote>On 23 March 2010 10:53, aki <SPAN dir=ltr><<A
href="mailto:aki275@googlemail.com">aki275@googlemail.com</A>></SPAN>
wrote:<BR>
<BLOCKQUOTE
style="BORDER-LEFT: rgb(204,204,204) 1px solid; MARGIN: 0pt 0pt 0pt 0.8ex; PADDING-LEFT: 1ex"
class=gmail_quote>
<DIV>Hi Andrea, I put forward this question.How excatly is AK going to
tap into the SOHO market? It cannot do so with a bandwidth price tag of
double-bandwidth/same price scheme and it is eyeing a sector that many
have already targetted long before the arrival of undersea
cables. Most buildings for example in Nairobi are on national fiber,
KDN fiber, JTL Fiber, Telkom Fiber as there. All these players have Internet
terminations, switches and bandwidth allocations to tenants within those
buildings. What excatly is AK going to offer better than these players? =
cheaper bandwidth as a start. Do also consider that by towards the end
of this year, most annual contracts that Corporate clients have with ISPs
will need to be renewed and am sure that many are not happy being bogged
down to the double-bandwidth/same price scheme whereas they can buy the
same bandwidth at half or quarter of the price. If AK profits
dropped by 30% and it learnt something important from the market, then we
have a bonus as end users. I dont think the Business Daily article is
negative at all, infact it is an important piece of information. Lets see
how things turn out towards the final quarter of this year. I'm sure we will
re-visit some of the points listed here. </DIV>
<DIV> </DIV>
<DIV>Rgds.</DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV class=gmail_quote>On Tue, Mar 23, 2010 at 10:18 AM, Andrea Bohnstedt
<SPAN dir=ltr><<A href="mailto:andrea.bohnstedt@ratio-magazine.com"
target=_blank>andrea.bohnstedt@ratio-magazine.com</A>></SPAN> wrote:<BR>
<BLOCKQUOTE
style="BORDER-LEFT: rgb(204,204,204) 1px solid; MARGIN: 0px 0px 0px 0.8ex; PADDING-LEFT: 1ex"
class=gmail_quote>I'm with Tim on this. I haven't looked at the overall
data yet, but according to the BD articles and assuming they cite this
correctly, some, by no means all, customers may have spoken: <BR>'While
AccessKenya’s revenue was up 32 per cent from Sh1.5 billion to Sh2 billion
last year, a slowdown in profit as a result of lower corporate IT sales,
last year, proved to be a major stumbling block for the firm.'<BR><BR>This
doesn't actually say whether the growth in corporate IT sales has slowed
down, or the company's number of corporate clients has declined.
<BR><BR>In addition, corporate ITdoesn't appear to have been a focus:
<BR>'AccessKenya is eyeing the opportunity to tap the increasing appetite
for Internet connectivity in the high-end residential and SOHO (Small
offices and home offices) segment.'<BR><BR>And the company doubled its
investments in infrastructure: <BR>'Last year, AccessKenya spent Sh1
billion in investing activities compared to Sh511 million in
2008.'<BR><BR></BLOCKQUOTE></DIV><BR>_______________________________________________<BR>kictanet
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href="mailto:kictanet@lists.kictanet.or.ke">kictanet@lists.kictanet.or.ke</A><BR><A
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clear=all><BR>-- <BR>Andrea Bohnstedt<BR>Publisher<BR>+254 720 960 322 <BR><A
href="http://www.ratio-magazine.com">www.ratio-magazine.com</A> <BR>
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