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Safaricom, Airtel buy out Yu mobile
Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Should have sold to Meralli. He knows how to work such deals. Life is short. Live passionately.
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Rank: Member Joined: 2/16/2012 Posts: 808
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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.
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Rank: New-farer Joined: 12/16/2013 Posts: 49 Location: Nairobi
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REALLY?? havent heard about this deal in the office. "'Nowadays people know the price of everything and the value of nothing.' - Oscar Wilde.
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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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
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Rank: Veteran Joined: 11/2/2006 Posts: 1,206 Location: Nairobi
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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.
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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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sounds more like Airtel buying out yu. They got all yu customers
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Rank: Elder Joined: 7/22/2009 Posts: 7,460
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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.
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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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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
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Rank: Elder Joined: 7/22/2009 Posts: 7,460
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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.
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Rank: Member Joined: 11/15/2010 Posts: 454 Location: Nairobi
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[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..
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Rank: Chief Joined: 1/3/2007 Posts: 18,124 Location: Nairobi
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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
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Rank: Chief Joined: 1/3/2007 Posts: 18,124 Location: Nairobi
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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
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Rank: Elder Joined: 9/12/2006 Posts: 1,554
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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
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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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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Rank: Member Joined: 4/15/2009 Posts: 371
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sparkly wrote: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. I think Safaricom wanted the frequencies that had been allocated to YU. You will soon find improvement in the quality of their services......may be.
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Rank: Elder Joined: 7/22/2009 Posts: 7,460
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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 word! 2 Billion for subscribers who will ultimately turn out to be ghost subscribers! They will be lucky to still have 500m of the 2.7m subscribers still active on their network by December 2015! Maybe December 2014! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Is the duopoly returning and much stronger? Orange KE is more weakened with this deal. This orange firm is now a perma bailout biz! CCK & treasury will soon be answering tough questions when the ball drops... Orange is not attractive with a huge debt pit. Telco consolidation it is... Losers are subscribers as fewer choices are on the table. CCK has really tried to save a bad situation. But it's an admission that the industry is not healthy after a prolonged price war which CCK failed to check. No wonder mpesa bank was stashing that cashflow mountain... $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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hisah wrote:Is the duopoly returning and much stronger? Orange KE is more weakened with this deal. This orange firm is now a perma bailout biz! CCK & treasury will soon be answering tough questions when the ball drops... Orange is not attractive with a huge debt pit. Telco consolidation it is... Losers are subscribers as fewer choices are on the table. CCK has really tried to save a bad situation. But it's an admission that the industry is not healthy after a prolonged price war which CCK failed to check.
No wonder mpesa bank was stashing that cashflow mountain... Waiting for such opportunities to strike. Is Orange really ever going to throw in the towel? They lack dearly in creativity it stinks. I wonder how their little prize war is coming along. "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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murchr wrote:hisah wrote:Is the duopoly returning and much stronger? Orange KE is more weakened with this deal. This orange firm is now a perma bailout biz! CCK & treasury will soon be answering tough questions when the ball drops... Orange is not attractive with a huge debt pit. Telco consolidation it is... Losers are subscribers as fewer choices are on the table. CCK has really tried to save a bad situation. But it's an admission that the industry is not healthy after a prolonged price war which CCK failed to check.
No wonder mpesa bank was stashing that cashflow mountain... Waiting for such opportunities to strike. Is Orange really ever going to throw in the towel? They lack dearly in creativity it stinks. I wonder how their little prize war is coming along. When orange throws in the towel it'll be a huge bailout or a default. None of which will be pleasant. Such a biz is bought at poor strike prices - fire sale. Most likely the 2 will be back on the bidding table. Thus the return of the duopoly...
Is orange on a price war again? A price when running on fumes?! Oh dear  $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Safaricom, Airtel buy out Yu mobile
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