How will the market react?
Do we expect anything near 20 Birrion profit?
Being the market leader,the market is likely to follow in the footstep of this (saf)con...

IMHO there will be gnashing of teeth and loss of value. Nevertheless, I could be made to believe in miracles come the 18th. P.S: PLEASE AMEND HEAD LINE OF THREAD.

18 May that's early...its Bullish signal right there.

I am waiting for this like a nothing else! Being the market leader means whatever direction in terms of performance safcom takes will give a general indication of the industry. Lakini pia naogopa they might have been fatally injured by the price wars.

Could they have pulled a rabbit out of the hat?

Fresh on today's news, Orange announces 'sayonara' to 400 staff...
COTU says they will issue a strike notice against retrenchment...
Orange reduces commissions to dealers by 20%; Mobicom Lo!
Orange grows subscribers but revenue dips...

Bitange Ndemo says 'I told you so' on price war...


Remarkable growth of MPESA on different chart
yr---subscribers
2007-----52k
2008-----2.3m
2009-----6.4m
2010-----9.5m
2011-----13.5m


Safaricom still holds market share 75.9% ('09 78%) Airtel about 13.5% ('09 17%)
Outcome of price cuts: happy consumers on one hand and 'job losses, dent investor confidence and slow down investments in telecoms sector'
Does this explain why Airtel is behind schedule on 3G?

http://www.businessdailyafrica....8/-/pks2j9z/-/index.html

VVS are you serious to state that the economy benefited, when there are job loses and the government has also lost income(taxes) and prices are escalating to meet the challenge! get serious kidogo dont only look at the ability to have cheap calls

Jamani i think this boils down to what will benefit the highest number of kenyans or does it? me thinks that the lower prices will enable more kenyans to communicate at the expense of a few thousand kenyans who may need to change their lifestyle coz of potential loss of income. The mentioned few kenyans are those that are employed by the operators directly or indirectly. The government has many other possible sources of cash. Therefore the loss of one revenue stream should not mean much.

I am afraid that the future for investment in telecoms in this country for the moment appears rather bleak. Safaricom might just manage to weather the storm in their 2010-11 financials on account of the 1st half of the year. The momentum since then must have surely slowed.

However, it is a lot worse for the others who do not have other services to fallback on viz Data, MPESA etc. Take Orange as an example. I have a 3G+ Modem which used to be my default Internet service on account of cost. The bloody thing has however slowed to such a crawl that I am now about to fully impair my 4GB bundle such is the headache I get when I try to use it. That's likely to be the last sale they will see from me unless there is an earthshaking change.

I have now purchased a 20GB bundle from SCOM for 9,999 and the cost per MB now comes to Kshs 0.50 which is less than my previous Orange bundles. It also comes with no hassles regarding speed and user experience.

Absolutely! Cheaper fuel will benefit more Kenyans overall & so cheaper phone calls will benefit more Kenyans. The 'increased' profits simply means Vodaphone, Airtel or Orange France will benefit more than Kenyans!

Or perhaps you think we should get rid of cars & go to mkokotenis so that we do not need to import fuel & provide many more jobs for Kenyans?

Ahhh! Let's get rid of 'cheap' computers so more people can be hired as secretaries using typewriters!