alma wrote:erifloss wrote:
Anyone who knows AT&T will know how this war might end.
@arifloss I like your thinking however
This idea of safaricom doing some great things in data is extremely flawed. You are using AT& T and I can assure you. This data thing from safaricom is the most overhyped BS i have ever heard.
It is never about the rates. It's about perception with the customer. Safcom looks greedy and once it goes that way, it looks like AT&T. Greedy.
I am very sure you know of people who have moved in the past week. Those ones will never come back. not with preconditions on how they should call in the venerable safcom.
As for data.
Unless safcom is doing cable for connectivity, they are as doomed as AT&T.
Only one company is doing this and its Wananchi in zuku. Where i live everyone is on zuku unlimited for 2k a month. I mean everyone.
Once zuku goes live with its cable on KPLC lines, you can kiss goodbye to these modems people carry about.
what happens when zain and orange (wait for orange offer soon) go data too?
4G is not the future of data. It is cable in your home. Unless safcom is doing that, then expect more price wars soon.
so please, if morgan stanley has seen the wisdom of downgrading safcom, you should too. Because safcom revenues are about to be hit, and hit hard.
@Alma, First remember that AT & T is still the largest telecommunications company in the US, though Verizon is trying to pull a Zain on them (visit their website and you'll realise that they are offering a lot of data products).
Safaricom has also aquired companies that deal with Wimax to OFC and still have substantial ownership of the undersea cable though they are still recouping this investment.
Most young people, businessmen, entrepreneurs are on the move. They like having internet on the move and remember when they talk of having internet penetration of more than 1 million people, they don't refer to households! Its you who they talk about, on your laptop or phone (would you prefer 3G or 4G?)
Morgan Stanley might be right but what i see is a company that prepared itself way ahead of its competitors and realised that the only way to survive in business is diversification. Safaricom had already realised that the ARPU on calls was going to drop and prepared themselves for this.
I am sure that safaricom may be having a new data product that we all are not yet aware of and if you ask telecommunication infrastructure companies who their largest client has been for the last 6 months and the one they are preparing to do more work for in the coming months?....Safaricom would be their answer (Huawei's GSM division is even recruiting engineers for this).
Thus as a long term investor, i'm comfortable the future is green.
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary