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Safaricom, Airtel buy out Yu mobile
dunkang
#1 Posted : Saturday, March 01, 2014 9:31:13 PM
Rank: Elder

Joined: 6/2/2011
Posts: 4,824
Location: -1.2107, 36.8831
sparkly
#2 Posted : Saturday, March 01, 2014 10:31:17 PM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
Should have sold to Meralli. He knows how to work such deals.
Life is short. Live passionately.
D32
#3 Posted : Sunday, March 02, 2014 4:36:12 AM
Rank: Member

Joined: 2/16/2012
Posts: 808
Just speculating: Maybe it's because of Equity's talks to partner with Yu. Now whatever happens, Safcom will always have a say (To keep m-pesa dominant), maybe unless if Equity leap-frogs to start it's own new-gen 4G / LTE network, which will be mostly welcomed, but it would take a miracle.

While other African countries are on 4G / LTE, here in Kenya, telecommunication politics.

http://www.rethink-wirel...d-lte-project-kenya.htm
http://www.innov8tiv.com...network-kenya-test-runs/
They tried to bury us, they didn't know we were seeds.
Candlesticks
#4 Posted : Sunday, March 02, 2014 10:23:40 AM
Rank: New-farer

Joined: 12/16/2013
Posts: 49
Location: Nairobi
REALLY?? havent heard about this deal in the office.
"'Nowadays people know the price of everything and the value of nothing.' - Oscar Wilde.
Angelica _ann
#5 Posted : Sunday, March 02, 2014 10:49:30 AM
Rank: Elder

Joined: 12/7/2012
Posts: 11,935
Candlesticks wrote:
REALLY?? havent heard about this deal in the office.

Just know you have been bought, also shows how the comany values you!
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
bird_man
#6 Posted : Sunday, March 02, 2014 10:51:29 AM
Rank: Veteran

Joined: 11/2/2006
Posts: 1,206
Location: Nairobi
Angelica _ann wrote:
Candlesticks wrote:
REALLY?? havent heard about this deal in the office.

Just know you have been bought, also shows how the comany values you!


Prepare for hard times ahead especially if you aint a techie.
Formally employed people often live their employers' dream & forget about their own.
Lolest!
#7 Posted : Sunday, March 02, 2014 11:41:35 AM
Rank: Elder

Joined: 3/18/2011
Posts: 12,069
Location: Kianjokoma
sounds more like Airtel buying out yu. They got all yu customers
Laughing out loudly smile Applause d'oh! Sad Drool Liar Shame on you Pray
MaichBlack
#8 Posted : Sunday, March 02, 2014 12:17:10 PM
Rank: Elder

Joined: 7/22/2009
Posts: 7,833
Lolest! wrote:
sounds more like Airtel buying out yu. They got all yu customers

If you ask me, Airtel got shafted. And they will notice that sooner rather than later! A majority of Yu subscribers use the Yu line as their SECONDARY line mainly for the freebies - free calls etc. Unless Airtel a planning to continue giving them these freebies - that were costing Yu 3 BILLION every year, that 2.7 million will become 1 million in under a year. And then the remaining 1 million will be lost slowly but surely.

Such a deal would only make sense if a majority of Yu subscribers had the line as a primary line and could not migrate to another provider with the same number! What stops a Yu subscriber migrating a day after being "bought"?

I will not be suprised if Safaricom [and Orange] launch an aggressive MIGRATION campaign in a few weeks - complete with goodies - discounts, free airtime, migrate ubanjuke na millioni etc. Watch this space!
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
dunkang
#9 Posted : Sunday, March 02, 2014 12:18:50 PM
Rank: Elder

Joined: 6/2/2011
Posts: 4,824
Location: -1.2107, 36.8831
Lolest! wrote:
sounds more like Airtel buying out yu. They got all yu customers

Out of the supposed 8.6B/-, Safcom forked out the most, Airtel just forked out 2.xB/-. Also, Safcom is taking over the infrastructure and technical staff, whilst Air tel is taking the clients, who most probably, have active safcom lines.

And BTW, airtel had taken yu to court for some money, how well has that been factored in the deal!!! Hapa naona yu left with nothing.
Receive with simplicity everything that happens to you.” ― Rashi

MaichBlack
#10 Posted : Sunday, March 02, 2014 12:28:17 PM
Rank: Elder

Joined: 7/22/2009
Posts: 7,833
Safcom can afford to buy both the infrastructure and subscribers [prefix] - easy! Why didn't they??? They knew they could get them for free and some of them already have a Safcom line as their primary line anyway! I suspect the subscribers were offered to Airtel AFTER Safcom REFUSED to 'buy' them.

And I don't think it has anything to do with fair competition rules. The two major players ganging up to buy the third major player is worse than the major player buying the third major player. The former might even be characterized as cartel like behaviour!!!
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
tinker
#11 Posted : Sunday, March 02, 2014 5:46:35 PM
Rank: Member

Joined: 11/15/2010
Posts: 455
Location: Nairobi
[quote=D32]Just speculating: Maybe it's because of Equity's talks to partner with Yu. Now whatever happens, Safcom will always have a say (To keep m-pesa dominant), maybe unless if Equity leap-frogs to start it's own new-gen 4G / LTE network, which will be mostly welcomed, but it would take a miracle.

While other African countries are on 4G / LTE, here in Kenya, telecommunication politics.

http://www.rethink-wirel...d-lte-project-kenya.htm
http://www.innov8tiv.com...etwork-kenya-test-runs/[/quote]

@D32, I agree with you, this haste deal was closed to lock 'Member' out of mobile/telecom market pie,
I can see the M-Kesho - M-Shwari rivally here.
....He who began a good work in you will carry it on to completion..
VituVingiSana
#12 Posted : Sunday, March 02, 2014 8:11:46 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,342
Location: Nairobi
Lolest! wrote:
sounds more like Airtel buying out yu. They got all yu customers
Most YU customers were multi-SIM users who probably have M-Pesa or Airtel Money but we know M-Pesa dominates the Mobile Money market.

If you ask me, Safaricom did this to lock out MVNOs [what Equity wanted to be] and it would be barred from buying out the customers so give them to Airtel. I am surprised Telkom didn't get/buy the customers.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
VituVingiSana
#13 Posted : Sunday, March 02, 2014 8:17:37 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,342
Location: Nairobi
MaichBlack wrote:
Safcom can afford to buy both the infrastructure and subscribers [prefix] - easy! Why didn't they??? They knew they could get them for free and some of them already have a Safcom line as their primary line anyway! I suspect the subscribers were offered to Airtel AFTER Safcom REFUSED to 'buy' them.

And I don't think it has anything to do with fair competition rules. The two major players ganging up to buy the third major player is worse than the major player buying the third major player. The former might even be characterized as cartel like behaviour!!!
Safaricom cannot buy YU's subscribers since it would be blocked by the Competition Commission since SafCom has 65% of the market.

By giving Airtel the customers, Safcom eliminates a competitor with infrastructure [by buying out the infrastructure], and keeping the Competition authorities off it's back. Buying infrastructure is not 'illegal' but buying customers probably is for Safcom.

The loser is Equity.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Jamani
#14 Posted : Sunday, March 02, 2014 9:09:53 PM
Rank: Elder

Joined: 9/12/2006
Posts: 1,554
VituVingiSana wrote:
MaichBlack wrote:
Safcom can afford to buy both the infrastructure and subscribers [prefix] - easy! Why didn't they??? They knew they could get them for free and some of them already have a Safcom line as their primary line anyway! I suspect the subscribers were offered to Airtel AFTER Safcom REFUSED to 'buy' them.

And I don't think it has anything to do with fair competition rules. The two major players ganging up to buy the third major player is worse than the major player buying the third major player. The former might even be characterized as cartel like behaviour!!!
Safaricom cannot buy YU's subscribers since it would be blocked by the Competition Commission since SafCom has 65% of the market.

By giving Airtel the customers, Safcom eliminates a competitor with infrastructure [by buying out the infrastructure], and keeping the Competition authorities off it's back. Buying infrastructure is not 'illegal' but buying customers probably is for Safcom.

The loser is Equity.


And Airtel
sparkly
#15 Posted : Sunday, March 02, 2014 9:43:00 PM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
Jamani wrote:
VituVingiSana wrote:
MaichBlack wrote:
Safcom can afford to buy both the infrastructure and subscribers [prefix] - easy! Why didn't they??? They knew they could get them for free and some of them already have a Safcom line as their primary line anyway! I suspect the subscribers were offered to Airtel AFTER Safcom REFUSED to 'buy' them.

And I don't think it has anything to do with fair competition rules. The two major players ganging up to buy the third major player is worse than the major player buying the third major player. The former might even be characterized as cartel like behaviour!!!
Safaricom cannot buy YU's subscribers since it would be blocked by the Competition Commission since SafCom has 65% of the market.

By giving Airtel the customers, Safcom eliminates a competitor with infrastructure [by buying out the infrastructure], and keeping the Competition authorities off it's back. Buying infrastructure is not 'illegal' but buying customers probably is for Safcom.

The loser is Equity.


And Airtel


Safaricom shareholders should question how and why the company is applying resources.
Life is short. Live passionately.
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