<br><br><div class="gmail_quote">On Wed, Jan 19, 2011 at 11:06 PM, Barrack Otieno <span dir="ltr"><<a href="mailto:otieno.barrack@gmail.com">otieno.barrack@gmail.com</a>></span> wrote:<br><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex;">
<span style="font-family:'Times New Roman', Times, serif;font-size:12.5px;color:rgb(51, 51, 51);line-height:19px"><div><span style="font-family:'Times New Roman', Times, serif;font-size:12.5px;color:rgb(51, 51, 51);line-height:19px">Well Listers i suggest we move away from a personalised (political :-)) debate targeted at the PS and tackle the issues that have been raised in the article soberly, i have picked some excerpts from the article posted by Shem. Could we also comment on the comments attributed to Michael Ghossein (TKL) and Mr. Peter Wanyonyi?</span></div>
<div><span style="font-family:'Times New Roman', Times, serif;font-size:12.5px;color:rgb(51, 51, 51);line-height:19px"><br></span></div><div><span style="font-family:'Times New Roman', Times, serif;font-size:12.5px;color:rgb(51, 51, 51);line-height:19px">Regards</span></div>
<div><span style="font-family:'Times New Roman', Times, serif;font-size:12.5px;color:rgb(51, 51, 51);line-height:19px"><br></span></div>“We have asked CCK (industry regulator Communications Commission of Kenya) to evaluate if this kind of pricing is sustainable,” Dr Ndemo said on Monday.</span><div>
<font color="#333333" face="'Times New Roman', Times, serif" size="2"><span style="line-height:19px"><span style="font-size:12.5px">“I am not opposed to reduced prices but they have to make business sense,” he said. “Competition has to take care of re-investment in the sector as well as shareholder value.”</span></span></font></div>
</blockquote><div><br></div><div>My simplistic view:</div><div><br></div><div>"re-investment" and "shareholder value". I don't see how those relate to Airtel. If Airtel's shareholders are fine with the move, then why are we bothered? Who are we worrying about here? Safaricom, Yu and Orange??</div>
<div><br></div><div> </div><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex;">
<div><font color="#333333" face="'Times New Roman', Times, serif"><span style="line-height:19px"><font size="2"><span style="line-height:normal;font-size:12.5px"><div style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px">
<p style="margin-top:0px;margin-right:0px;margin-bottom:1em;margin-left:0px;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;line-height:1.3em">Orange Kenya CEO Mickael Ghossein said on Monday that the future of the industry’s profitability appears grim should the current price wars be allowed to prevail.</p>
</div></span></font></span></font></div></blockquote><div> </div><div>The matter raising this debate is about "on-net" calling rates for Airtel. How does that affect their competitors??</div><div> </div><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex;">
<div><font color="#333333" face="'Times New Roman', Times, serif"><span style="line-height:19px"><font size="2"><span style="line-height:normal;font-size:12.5px"><div style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px">
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“There has not been largely significant increase in the traffic across networks that would indicate that the low pricing model offered by the competition has resulted in massive recruitments. </p></div></span></font></span></font></div>
</blockquote><div>Why does Mr. Ghossein expect "traffic across networks" when actually, Airtel's mission is to promote more calls "on-net"?</div><div><br></div><div> </div><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex;">
<div><font color="#333333" face="'Times New Roman', Times, serif"><span style="line-height:19px"><font size="2"><span style="line-height:normal;font-size:12.5px"><div style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px">
<p style="margin-top:0px;margin-right:0px;margin-bottom:1em;margin-left:0px;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;line-height:1.3em">In any case, cannibalisation of another player’s market share cannot be considered as industry growth,” Mr Ghossein said.</p>
</div></span></font></span></font></div></blockquote><div><br></div><div>Competition is being called cannibalisation??</div><div><br></div><div> </div><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex;">
<div><font color="#333333" face="'Times New Roman', Times, serif"><span style="line-height:19px"><font size="2"><span style="line-height:normal;font-size:12.5px"><div style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px">
</div><div style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px"><p style="margin-top:0px;margin-right:0px;margin-bottom:1em;margin-left:0px;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;line-height:1.3em">
“Operators will see little justification in improving call and related quality when profits are falling under assault from Airtel’s strategy.</p><p style="margin-top:0px;margin-right:0px;margin-bottom:1em;margin-left:0px;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;line-height:1.3em">
<span style="line-height:normal;font-size:12.5px"></span></p><div style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px">
<p style="margin-top:0px;margin-right:0px;margin-bottom:1em;margin-left:0px;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;line-height:1.3em">“Improving service quality requires investment in new infrastructure, but with ever-reducing revenues, this will not happen,” warns Mr Peter Wanyonyi, a telecoms analyst.</p>
</div></div></span></font></span></font></div></blockquote><div>It will happen, if operators started sharing infrastructure. Soon, they will be sharing it anyway, thanks to the govt's plan to "own" the infrastructure to be used for LTE.</div>
<div><br></div><div> </div><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex;"><div><font color="#333333" face="'Times New Roman', Times, serif"><span style="line-height:19px"><font size="2"><span style="line-height:normal;font-size:12.5px"><div style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px">
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But India’s Bharti Airtel-owned Kenyan subsidiary has defended its decision.</p></div></div></span></font></span></font></div></blockquote><div><br></div><div>I too have defended Airtel, in my own simplistic way, as a consumer.</div>
<div><br></div><div>What everyone is seeing is a situation where the PS's comments are being seen in two dimensions: Attempts to favor some players in the field, and an attempt to manipulate the regulator.</div><div>
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</div></div><br>-- <br>Best regards,<br>Odhiambo WASHINGTON,<br>Nairobi,KE<br>+254733744121/+254722743223<br>_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ <br>Damn!!<br><br>