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Safaricom Restructure or downsizing?
Rank: Member Joined: 9/6/2007 Posts: 132
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From the above discussions regardless of who started when the bottom line is Kencell made major mistakes that gave Safaricom a headstart.Celtel Zain tried to catch up and now Airtel need a miracle to catch up remember this is not the first time they have pulled the price cut trick.We had Switch ufurahie,pamoja Vuka etc.
The Kenyan market is very Queer and despiite the price cuts Kenyans are still having Safaricom sim cards.Definitely Safaricom market share will be shaken and hence have to get into cost cutting strategies.I dont think Airtel are here to stay I give them 2 years maximum.Ps Under whatever name they operate this company has never made profits in the Kenyan operation.
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Rank: Elder Joined: 9/15/2006 Posts: 3,906
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tony stark wrote:Muhika are you a politician?? @tony stark your dates are correct yet it is not totally counter to @mukiha's position. For mobile in Kenya: Vivendi operationalized their license 1st, quickly taking all cream subscribers (postpaid) in the market - they held no 1 position for around 2 years. Vodafone operationalized their license 2nd, as a spin-off from Telkom, opting to strategically retain the name Safaricom. Essar came third, and Telkom converted to Orange 4th. What we have to flat out banish is this talk of 'forceful monopoly' - it amounts to blaming Jesse Owens for being 'black'.
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Rank: Member Joined: 1/31/2007 Posts: 304
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VituVingiSana wrote:chaliwong wrote:Airtel will never score in kenya. The only people who wil score with Airtel are consumers As a consumer I am happy... Me too gone are the days when I used to make calls with my eyes on the clock.. Nowadays I find myself enjoying my calls very much.Airtel may not make profits for now but we the mobile phone consumers shall forever remain indebted to them and one day they shall get their just rewards..
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Rank: Elder Joined: 9/15/2006 Posts: 3,906
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Now on another note, I remember reading a humorous account by Carol Musyoka on CEO transitions. A departing benevolent CEO leaves sealed letters to the new entrant, to be opened if the company faced a crisis. When the first crisis occurs, the new CEO opens the first letter and it instructs " blame your predecessor". After a smooth couple of months, another crisis and another letter must be opened - this one reads " reorangize". Perhaps this explains the reorganization at EABL after Mahinda left, and the one in Safaricom after MJ left. From the public gallery, I must note the difference in approach between Messr Collymore and Joseph. Michael Joseph seems to be a revenue/growth man; fire at all cylinders whatever the price. Bob Collymore seems obessed about the customer and in these new times, must find a way to do it while remaining profitable. Could Safaricom profitably stick to its old ways? (probably not) Will Safaricom be more effecient after reorganization (probably so) Did something need to change at Safaricom? (definitely) Could the best years be ahead for Safaricom? (only time will tell)
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Rank: Veteran Joined: 6/2/2010 Posts: 1,075
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moneydust wrote:VituVingiSana wrote:chaliwong wrote:Airtel will never score in kenya. The only people who wil score with Airtel are consumers As a consumer I am happy... Me too gone are the days when I used to make calls with my eyes on the clock.. Nowadays I find myself enjoying my calls very much.Airtel may not make profits for now but we the mobile phone consumers shall forever remain indebted to them and one day they shall get their just rewards.. Airtel is NOT a charity. The price wars were just to gain market share. Had they suceeded, the prices would be back up. The prices they are charging now are below cost; you cannot do this ad infinitum, as a business. Not even as a charity.
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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tony stark wrote:mukiha wrote:aydenjason wrote:lets nt 4get that kenya has hd 10yrs of unleveled telecom playin field n forceful monopoly. Regardles of wat happened then, all is bound to change now that all seems to be leveling up. The upcoming mobile no portability wil b the 6th nail on that casket..
I hope you don't mean in favour of SCOM. This notion has been peddled around by politicians.....Remember when the IPO price was announced, they complained that 5-bob "too cheap". The market has proven them dead wrong - the price was just right. Truth is: SCOM was the third player in the market, after Telkom and Kencell. By the time SCOM launched, Kencell had over 50,000 subscribers. Then things started turning and both reached 200,000 at the same time... when SCOM touched 500,000, Kencell was at 300,000 At one million for SCOM, Kencell had not even crossed the 0.5m mark.... since then, Kencell/Celltel/Zain/Airtel has just been making mistake after mistake and seeing dust all the way.... The field has been level. Nobody has ever been forced to stay in SCOM. In fact, I only joined SCOM recently because of M-PESA. But I still make all voice calls using Airtel. Muhika are you a politician?? Safaricom launched in 1997 (using GSM) but had been in existence since 1992(using ETACS). They relaunched as a privatized operator in 2000 after vodafone bought shares in the company. Kencell has been in operation since august 2000. This misinformation on the launch of the mobile providers leads me to the conclusion that you are also probably lying about the figures and the levelness of the playing field. Kind regards @tony; "lie" is such a strong, nay, harsh, word... I'd prefer you say "mistaken" Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Veteran Joined: 4/4/2007 Posts: 1,162
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Methinks once Airtel rolls out 3G it will be a giant leap against safcom. What keeps me in safcom is 3G and Mpesa.
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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majimaji wrote:
Methinks once Airtel rolls out 3G it will be a giant leap against safcom. What keeps me in safcom is 3G and Mpesa.
Don't hold your breath! Kencell/Celltel/Zain were always one step ahead of SCOM in product innovation. First to introduce SMS; First with Airtime sharing; First with Momey transfer [remember SokoTele?]; First with Blackberry [SCOM launched it without the supporting infrastructure!] etc... The only thing that SCOM launched before these guys is Mobile Internet - starting from GPRS then EDGE and now 3G Kencell/Celltel/Zain have simply messed up in their marketing. Their assumption that the market is looking for cheaper product has been proven wrong each time. If you doubt me: see your own comment, you are in SCOM for 3G [=Internet] and M-Pesa [=money transfer]. Are you aware that SCOM is more expensive on these two services? Yet you are buying them from SCOM. If history is anything to go by, Airtel will launch their 3G; make a lot noise for a few days then go quiet. At that point SCOM will launch 4G and Airtel will be sold to another eager buyer! Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Veteran Joined: 7/8/2008 Posts: 947
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mukiha wrote:tony stark wrote:mukiha wrote:aydenjason wrote:lets nt 4get that kenya has hd 10yrs of unleveled telecom playin field n forceful monopoly. Regardles of wat happened then, all is bound to change now that all seems to be leveling up. The upcoming mobile no portability wil b the 6th nail on that casket..
I hope you don't mean in favour of SCOM. This notion has been peddled around by politicians.....Remember when the IPO price was announced, they complained that 5-bob "too cheap". The market has proven them dead wrong - the price was just right. Truth is: SCOM was the third player in the market, after Telkom and Kencell. By the time SCOM launched, Kencell had over 50,000 subscribers. Then things started turning and both reached 200,000 at the same time... when SCOM touched 500,000, Kencell was at 300,000 At one million for SCOM, Kencell had not even crossed the 0.5m mark.... since then, Kencell/Celltel/Zain/Airtel has just been making mistake after mistake and seeing dust all the way.... The field has been level. Nobody has ever been forced to stay in SCOM. In fact, I only joined SCOM recently because of M-PESA. But I still make all voice calls using Airtel. Muhika are you a politician?? Safaricom launched in 1997 (using GSM) but had been in existence since 1992(using ETACS). They relaunched as a privatized operator in 2000 after vodafone bought shares in the company. Kencell has been in operation since august 2000. This misinformation on the launch of the mobile providers leads me to the conclusion that you are also probably lying about the figures and the levelness of the playing field. Kind regards @tony; "lie" is such a strong, nay, harsh, word... I'd prefer you say "mistaken" My humble apologies.
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Rank: Member Joined: 1/10/2008 Posts: 365
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mukiha wrote:[quote=majimaji]
First with Momey transfer [remember SokoTele?]; @mukiha are you sure ? 
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Rank: Elder Joined: 4/22/2009 Posts: 2,863
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mukiha wrote:
Kencell/Celltel/Zain were always one step ahead of SCOM in product innovation. First to introduce SMS
Are you sure? IF YOU EXPECT ME TO POST ANYTHING POSITIVE ABOUT ASENO, YOU MAY AS WELL SIT ON A PIN
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Rank: Elder Joined: 9/12/2006 Posts: 1,554
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mwenza wrote:mukiha wrote:
Kencell/Celltel/Zain were always one step ahead of SCOM in product innovation. First to introduce SMS
Are you sure? SMS  , lakini the point is they were always the first to introduce products into the market, safcom was slow but sure
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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mwenza wrote:mukiha wrote:
Kencell/Celltel/Zain were always one step ahead of SCOM in product innovation. First to introduce SMS
Are you sure? Yes; we [Kencell customers] were sending SMSs for a while before SCOM started. And also sending SMS abroad... Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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subzero wrote:mukiha wrote:[quote=majimaji]
First with Momey transfer [remember SokoTele?]; @mukiha are you sure ? Yes, I'sure. It appears you never heard of SOKOTELE, the joint venture between Celtel and K-Rep bank. Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Elder Joined: 9/12/2006 Posts: 1,554
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subzero wrote:mukiha wrote:[quote=majimaji]
First with Momey transfer [remember SokoTele?]; @mukiha are you sure ? On this one Mukiha is right, only issue was Kencell/celtel/zain didnt take ownership they left it to K-rep and no adverts or budget for it was allocated safcom perfected it, and by the way it is said that the safcom staff that made it work as is now used to work for Kencell/celtel/zain and no one listerned to him the rest is......
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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Correct me if I'm wrong; weren't Claire Ruto and Arina at K/C/Z/A? Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Member Joined: 1/10/2008 Posts: 365
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Jamani wrote:subzero wrote:mukiha wrote:[quote=majimaji]
First with Momey transfer [remember SokoTele?]; @mukiha are you sure ? On this one Mukiha is right, only issue was Kencell/celtel/zain didnt take ownership they left it to K-rep and no adverts or budget for it was allocated safcom perfected it, and by the way it is said that the safcom staff that made it work as is now used to work for Kencell/celtel/zain and no one listerned to him the rest is...... mpesa launch date : 13 Feb 2007 sokotele launch date : 4th April 2007
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Rank: Veteran Joined: 12/8/2009 Posts: 975 Location: Nairobi
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subzero wrote:mukiha wrote:[quote=majimaji]
First with Momey transfer [remember SokoTele?]; @mukiha are you sure ? @all Kwanini mnatoa Mukiha rangi? This is very mbad. we might lose this serious contributor. You will know that you have arrived when money and time are not mutually exclusive "events" in you life!
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Rank: Member Joined: 9/6/2007 Posts: 132
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Mukiha is right
ME2U was first launched by celtel and later on Sambaza was launched by Safaricom.
Soko tele was launched before Mpesa that's for sure though i don't have the dates but what failed it was lack of proper distribution.
After Soko tele failed Celtel took too long to relaunch hence why they are trailing behind to date .Very good ideas but poor product development and Marketing.
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Rank: New-farer Joined: 2/15/2010 Posts: 75 Location: Nairobi
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@Muhika. you mentioned "Yes; we [Kencell customers] were sending SMSs for a while before SCOM started. And also sending SMS abroad.."
my first SIM was on Kencell and i remember that SMSes were introduced way after safaricom had theirs. if my memory serves me right, Kencell introduced their SMS service at a cost of 1 bob per SMS on net.
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