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Safaricom, Airtel buy out Yu mobile
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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..
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VituVingiSana
#12 Posted : Sunday, March 02, 2014 8:11:46 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,344
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
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VituVingiSana
#13 Posted : Sunday, March 02, 2014 8:17:37 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,344
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
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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
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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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Caveman
#16 Posted : Sunday, March 02, 2014 10:07:01 PM
Rank: Member

Joined: 4/15/2009
Posts: 371
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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MaichBlack
#17 Posted : Sunday, March 02, 2014 11:18:02 PM
Rank: Elder

Joined: 7/22/2009
Posts: 7,833
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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hisah
#18 Posted : Monday, March 03, 2014 4:56:05 AM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
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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murchr
#19 Posted : Monday, March 03, 2014 5:05:40 AM
Rank: Elder

Joined: 2/26/2012
Posts: 15,980
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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hisah
#20 Posted : Monday, March 03, 2014 5:16:02 AM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
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 d'oh!
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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