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Safaricom, Airtel buy out Yu mobile
Rank: Elder Joined: 7/22/2009 Posts: 7,460
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MKWASI 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. Methinks as a country we lost. The current tariff charges are way too high. Mpesa services is pure theft. As a user, I would wish there are many players. Equity should have come on board to try and revolutionise this industry. This is a just a 'Monopoly' although in economics an oligopoly. 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: 1/3/2007 Posts: 18,124 Location: Nairobi
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hisah wrote:The vicious price war damage was a heavy blow. The regulator performed poorly back then. Monkey business indeed...! Did it ever pay corp taxes?  Corporate Taxes are paid on profits. Not all firms will make profits. It is part of the Free Market. YU (previously Econet) was disadavantaged from the beginning starting with the delays in getting a license. The Powers-That-Be had significant shares in Safaricom [Mobitelea] and Celtel [via Merali] with an interest in preventing a 3rd player. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: New-farer Joined: 2/15/2010 Posts: 75 Location: Nairobi
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@Mkwasi dont be deceived. call rates in Kenya are way cheaper than many other countries out there
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Rank: Member Joined: 1/13/2014 Posts: 386 Location: Denmark
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VituVingiSana wrote:MaichBlack wrote:VituVingiSana wrote:mlennyma wrote:Why is the advert only talking about safcom and not acrossboard?are there no other players? Why is that offensive? Seriously @vvs??? They are DIRECTLY attacking Safcom! Or what qualifies as 'offensive' in your book? It's like going for an interview and instead of talking about what you can bring to the company you start bad mouthing one of the interviewees!!! Anyway, Airtel [Or whatever name the company was going by at the time] tried it - with a bigger war chest - and failed miserably! I can still remember the [two - three] full page ads! That's a comparison. Is Orange lying? There is nothing offensive in comparing prices/costs. We do that all the time. We have spreadsheets [which are shared] that compare prices of land, rents, investments, shares [PER, P/B, ROE, ROA] so we can make the BEST decision. Orange is not saying that Safaricom is providing sub-standard service without proof. Orange is using PUBLISHED tariffs that are provided by Safaricom. And it is choice. You do not have to switch to Orange for cheaper rates. I know many who have 2 lines and have started using their Orange line to call me. I too keep 2 lines. Airtel for cheaper international [including EAC] calls and much cheaper roaming especially within the One Network. I use Safcom for the wide coverage of 3G and M-Pesa. I want to know if there are deals and ads are a good way to inform me abut them. Until Airtel brought prices down, Safaricom [the owned by Mobitelea, Vodacom & GoK] was screwing us. I recall how it fought tooth & nail to keep interconnection rates very high. I have paid KES 25/minute for calls. And these were Safcom to Safcom!!! If Safaricom is the BETTER network, let Orange make all the comparisons. Does it diminish Safaricom? Enough said. @vituvingisana Seeing is believing
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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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AND NOW, ITS OFFICIAL!!!!!!!!!!!  Receive with simplicity everything that happens to you.” ― Rashi
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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With yuMobile’s exit due to be finalised and its assets stripped, another key mobile operator may be following in its steps and could soon announce its way out from the Kenyan market. Six years after making a dramatic entry into the local market through the acquisition of defunct Telkom Kenya’s assets, Orange Mobile is considering whether it will fight it out for market share with Safaricom and Airtel, or throw in the towel. Orange began with a senior management shake-up on March 1 that saw three new directors appointed: Gerard Ries, Olivier Froissart and Sebastian Fayard. The firm also appointed Allain Bridard as chief technical and information officer, a key position in the organisation. The mandate of the new management is unknown, and whether their job involves preparing Orange for an eventual, and what appears to be an inevitable sale, remains to be seen. Alternatively, the management changes could be intended to keep the firm afloat a while longer as it attempts to turn its fortunes around. Read more at: http://www.standardmedia...-viability-exit-options
If Obiero did it, Who Am I?
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Rank: Elder Joined: 9/15/2006 Posts: 3,905
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Management by announcement is going to kill Kenyan companies. From before, the impression was that everything was a done deal; even cautionary statements issued. Then we hear CCK has not said anything and their board has not even met to give direction. Now there's talk of withdrawal, before anything even began. What will happen now?
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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A cloud of uncertainty!!! http://www.businessdaily.../-/12d2f1wz/-/index.html The opposite of courage is not cowardice, it's conformity.
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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Equity gona grab the deal "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 11/7/2007 Posts: 2,182
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I wish equity grabs, that will herald a new chapter of competition. it's healthy for the economy. LOVE WHAT YOU DO, DO WHAT YOU LOVE.
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Rank: Member Joined: 8/30/2010 Posts: 183 Location: Migingo
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Rank: Elder Joined: 9/15/2006 Posts: 3,905
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Eric Ombok @eombok
@SafaricomLtd asked to share MPESA & other agents, passive & active infrastructure with competitors as part of 13 conditions for Essar deal
@cck_kenya to grant mobile phone licenses to Finserve Africa Ltd, Zioncell Kenya Ltd and Mobile Pay Ltd. Applications made last year.
@JBonyo It is a list of at least 12 conditions including all three companies paying any outstanding fees to regulator
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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muganda wrote:
Eric Ombok @eombok
@SafaricomLtd asked to share MPESA & other agents, passive & active infrastructure with competitors as part of 13 conditions for Essar deal
Will the competitors pay any goodwill to safcom for this?In this case how will the outlets be branded?
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Still trying to digest the approval. http://www.bloomberg.com...com-airtel-purchase.html$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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Kenyans lazima vitisho ndio mfanye kazi "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: Elder Joined: 9/15/2006 Posts: 3,905
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It appears CCK has finally decided to regulate the market as relates to Safaricom's dominance. Hence the talk of national roaming service and the need to share infrastructure and m-pesa agents. And lately the green elephant has developed a knack for even bullying the regulator. Then there are these 3 new telco operators licensed - Finserve Africa Ltd, Zioncell Kenya Ltd and Mobile Pay Ltd. Where's Etislat or MTN or are they in buyout talks with Orange? These local unknown 3, what can they really do? At least the sound of an Equity or Nakumatt would have been more encouraging.
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Rank: Veteran Joined: 2/3/2012 Posts: 1,317
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Quick Safaricom, rush to Judge Mumbi Ngugi.
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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Finserve africa ltd is associated with equity. "Don't let the fear of losing be greater than the excitement of winning."
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Safaricom, Airtel buy out Yu mobile
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