Just wondering when!

"A near halving of call costs in the third quarter of last year caused a steep decline in consumer spending on telecommunication, pointing to a looming slowdown of profits growth across the sector....The CCK’s data shows that Telkom Kenya, Airtel and Yu may have finally broken what was informally known as the ‘ring-fence’ advantage that the market leader had on consumers"

Alafu si huyu Mufaransa asema matope tu!Tafadhali do not improve and you will be left alone Mr.C.E.O to calling your relas with your stringlike telephony!!!WaKubuka ile mikembe mbili na uzi katikati katika somo la Physics ama ni fisikia???

“Consumers who are currently enjoying the fruits of the price wars may very soon start feeling the pain of under-investment in quality improvement(because)more than halving of calling rates means the operators have lost at least 50 per cent of the revenues...laying the ground for guarded spending on infrastructure and product development".Says Mr Mikhael Ghossein, the Telkom Kenya chief executive.

As long as safaricom is still controlling 70% of voice and 92.2% data price warning will come but not this early...with all the promotion airtel managed to get 1M new subscribers against about half a million for safaricom ....Imagine that.

Miser, I doubt the profit warning will come anytime now. Read the report in the papers without bias and you will see the effect is kidogo sana (upwards or downwards) infact it leaves one wondering the minds at airtel.They did not achieve what they wanted and are seriously contributing to the profit margins of safcom through interconnect while they make a loss....
CCK says the ring is broken well lets wait till the promotion is over then we shall for sure know if it is.
It will take abit of time to bring safcom to its knees not with one promotion.

On data... I used to spend ZERO on Airtel. Too slow but I do spend a little coz they have a cheap bundle on my phone.

I have INCREASED my spend on data on Safaricom AFTER they reduced the prices. I am on the lookout for other cheaper BUT quality options. This is not Airtel 'taking' from Safaricom but additional spend.

@Jamani - Safcon will remain #1 [IMHO] for the next few years regardless of Airtel's efforts. Nevertheless, it will lose its extreme dominance if Airtel [& YU] can keep up the pressure.

BTW, no jobs were outsourced to India. That is a lie peddled by SafCon & its fan club aka shareholders! I read the reports. The outsourcing firm is Mara of Uganda [we are all EAC members. Uganda is a very important export market for Kenya. We should give a little too.]

Safaricom's best paid employee(s) are FOREIGN. Bob is NOT Kenyan! [Well, neither is Meza but sorta hypocritical when Bob cries about losing much lower-paying Kenyan jobs]

As for Yu. That is THEIR business strategy [2G vs 3G]. They do not want [or have the muscle] to compete against SAFCON... unlike Airtel! Thanks to Airtel we will see a huge drop in 3G costs in 2Q 2011 after they launch 3G!
I will be happy to vuka IF Airtel gives me CHEAPER & BETTER deal on 3G...

Where is the 'loss' for Kenyans? [Except safcon shareholders]

1) Lower calling rates = lower repatriation of profits to UK by vodaphone
2) Losses by Airtel means net inflow of FDI to support the local business
3) Airtel 3G means NET investment IN Kenya. New towers, base stations, leases for towers, new HQ, more Kenyan jobs!
4) Lower calling rates = increased spending power to Kenyans to buy ugali or invest in safcon!
5) Airtel Money (Zap) is cheaper than M-Pesa [I know coz I use it]. I can pay KPLC for FREE whereas M-Pesa charges me!

@jamani - Sawa you win! Let's ban Airtel & Yu... back to 25/- per minute calls so we can have 'technological advancement' 99.99% of Kenyans can't afford!

I could refute the points above but PLEASE use safaricom to help poor Bob get his bonus! After all he needs his $1mn+ salary...

On the 'taxes'... Sigh... BULLSHIT... There is NO 'loss' of taxes! Taxes are NOT a revenue generating activity! I will spend my 'savings' on other goods & services thereby creating additional economic activity = taxes for GoK

Finally:

1) Are you a safcon shareholder?
2) Are you a safcon employee?
3) Are you a govt employee?
4) Are you a safcon related contractor/employee?

Very interesting point. The current base is already established not 'new'... Sort of voting in NEP in 2002 when they thought dan moi was still running for president! All they knew was kanu so they voted for the party they knew since 1970s = kanu!

On Taxes??? Don't get me started! But since you did...

I am very pissed at how taxes are (mis)used... I pay all my taxes but I am not happy when I drive my 8 year old car while I see (new) mercs with GK plates zooming past me oblivious that fast speeds = more petrol = my taxes

We should use India as an example where the local [ugly but cheaper] cars are used by government employees. They probably cost a fraction of the price/cost of the mercs! Plus they can be repaired everywhere! http://en.wikipedia.org/wiki/Hindustan_Ambassador

LOL... Ok, I would not want to be seen in one but I am self-employed not a GoK employee!

So saying GoK will collect less tax coz of lower calling prices...! The bastards should be SAVING money not paying themselves KES 12mn + [untaxed] benefits annually!!!

@jamani Wait!!! You do not live in Kenya yet are so concerned about how/why Airtel saves Kenyans money?

Safaricom will not issue a profit warning because of the effect it will be have on the share price.
They will rather keep quiet and announce in May the results may include the dent of the effect of the price wars

Maybe you are right on this but just to ask, is it not a CMA requirement for a listed firm to issue a profit warning, when it misses its target or its dented?