VituVingiSana wrote:@iris - Safaricom benefited immensely from restrictions in allowing other players into the market. Safaricom's license was given to them courtesy of Telkom Kenya. Not many know this but there were only 2 mobile GSM licenses to start with.
Vivendi/Merali (KenCell) got one. Why do you think that happened?
Telkom got the other but when Safaricom was spun off an entity called Mobitelea became a 20% shareholder.
A 3rd licensee (Strive Masiyiwa) Econet was frustrated during the initial formative years until after Safaricom was already entrenched in the market.
The 4th license was given to Telkom but it was a convoluted process. An entity called Alcatraz had their fingers in this pie too.
Therefore, Safaricom had a chance to make super-normal profits since there were only 2 licensees. This does NOT mean KenCell/CelTel/Zain/Airtel did not screw up.
3-4 players from the beginning would have been better but the powers-that-be had their fingers in both KenCell & Safaricom hence the delays in licensing another entrant.
ThinSIM [Just a dual SIM but much thinner] - Safaricom did everything they could to stop/delay the process. It took Equity one year to get it into Kenyans' hands. Only Safaricom (not Airtel or Orange) really opposed this. The investment was all by Equity so what parallels are you drawing with Safaricom & 4G? [It doesn't use Safaricom's network for data or voice].
The increase by 300% in charges for bank to/from M-Pesa just after Equity launched Equitel seems suspicious. What's your take?
@vvs, first let me own up to not knowing as much history about GSM in Kenya as you seem to, and so I will avoid saying much on the historical injustices bit. For a start, it is very clear to me why Safaricom would have been the one to make noise; it carries the most money traffic and Mpesa is one of its key revenue streams and its strongest brand, while the others have negligible revenue from similar services.
The parallels I was drawing stems from Equity's desire to ride on Safaricom's services (they may not be strictly called "infrastructure", but they are nevertheless what Safaricom's value is derived from). Why do you think Equity was so focussed on Thin SIM? They have kept saying that it is because they want to ease the burden on the ordinary Kenyan, but it is not difficult to see that their reasoning probably goes thus:
Since they cannot replicate all the services that people get from Safaricom SIM, it is much harder to convince people to move to their SIM even with more favourable money services rates, than offer their services as incremental to Safaricom's by having customers do all the stuff they need to do with Safaricom as well as the additional (and cheaper) Equitel money service.
Wouldn't you agree that this is a form of riding on another's investment? Note that I am not saying this "wrong" for it is likely the pragmatic thing, but I am saying Equity is not the angel and Safaricom the devil. The parallel is that if those services that make competitors' SIMs attractive were common property, then fairness would reign..
And although most people dismiss Safaricom's concerns on security as baseless, from a strictly technical point of view, I have my reservations. IT techies here may know of the Gevey Thin SIM which has been around for years (in Kenya too) and used to open "Locked" iPhones. It is actually a hardware man-in-the-middle (MITM) device that defeats the Telco's protection and allows the iPhone to be used on any Telco. This is exactly the same technology as our much celebrated Equitel Thin SIM and also made by Chinese. Does anyone wonder why we are supposed to be the first country to adopt this technology that has been around for over 10 years? I vaguely remember reading somewhere the defence given by Taisys on security: something like there was no software in existence to exploit theoretical possibilities. There are people out there like Mark Russinovich who if they have motivation would have such software in no time. For a time, this gentleman taunted Microsoft by publicly sharing hidden processes and flaws that MS was hiding until he (and his software Winternals) was acquired by MS and made into a top dog. While MS thought they had proprietary system, Russinovich saw an open system to play with.
And best of all, why is Huawei banned from several countries? Electronic spying fears. But here in Kenya, we give the Chinese official testbed (and access to money..).
Check these:
Black Hat Article and
GSMAI have no idea how this will pan out but I get a sneaking feeling that already Equity is having second thoughts on how to advance this (or perhaps technical challenges?). Why aren't they making more noises on winning the war and advertising seriously? Why is the thin SIM costing more than normal SIM?
Oh oh, this is too long but you asked for it