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Future of Safaricom - break up due to dominance!
Rank: Elder Joined: 2/26/2012 Posts: 15,980
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muganda wrote:MaichBlack wrote:Wangusi and CA are to blame. The way they wanted to implement these dominant player manenos was totally retrogressive! You cannot punish success in a free market. You cannot clip a company's wings just because it has captured 50% of the market!!! What we should guard against is ABUSE OF DOMINANCE. And the burden of proof is on the regulator. And that rate, we should be breaking up/restricting EABL, BAT, BIDCO etc. Their reasoning was totally flawed and deviced to target Safcom not regulate the industry!!! Let the responsibility go to Competition Authority of Kenya because Wangusi and CA don't seem to understand anything to do with fair competition and making the ground LEVEL - both the big and small players. And in any case, that is the mandate of CAK!!!! I agree @Maichblack on all 3 counts: Airtel's whining, Wangusi & CA failure to make the ground level, and costing of 4G (whether you hoard or otherwise). The concerning issue will remain the inability of government to understand how to develop sectors vs one company. The BAT issue (plus even Mastermind not paying tax) is evidence of this. Same issue happened with EABL (Castle shenanigans, Keroche licenses).
You cannot change a country only extorting one key player who's motivated to naturally dominate a sector, with the outcome being entire Industries are stunted. They need a 21st century wakeup call! Agreed @muganda, these tactics of either punishing the one doing so well or bending the rules for the "homegrown" "beginner" "new kid on the block" are so 1900s "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: 3,907
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murchr wrote:muganda wrote:MaichBlack wrote:Wangusi and CA are to blame. The way they wanted to implement these dominant player manenos was totally retrogressive! You cannot punish success in a free market. You cannot clip a company's wings just because it has captured 50% of the market!!! What we should guard against is ABUSE OF DOMINANCE. And the burden of proof is on the regulator. And that rate, we should be breaking up/restricting EABL, BAT, BIDCO etc. Their reasoning was totally flawed and deviced to target Safcom not regulate the industry!!! Let the responsibility go to Competition Authority of Kenya because Wangusi and CA don't seem to understand anything to do with fair competition and making the ground LEVEL - both the big and small players. And in any case, that is the mandate of CAK!!!! I agree @Maichblack on all 3 counts: Airtel's whining, Wangusi & CA failure to make the ground level, and costing of 4G (whether you hoard or otherwise). The concerning issue will remain the inability of government to understand how to develop sectors vs one company. The BAT issue (plus even Mastermind not paying tax) is evidence of this. Same issue happened with EABL (Castle shenanigans, Keroche licenses).
You cannot change a country only extorting one key player who's motivated to naturally dominate a sector, with the outcome being entire Industries are stunted. They need a 21st century wakeup call! Agreed @muganda, these tactics of either punishing the one doing so well or bending the rules for the "homegrown" "beginner" "new kid on the block" are so 1900s Agreed @murchr. We have to come to the realisation that neither Diageo/EABL, BAT, Vodafone/Safaricom are magnanimous. Nor are Keroche, Mastermind, Airtel saints. History shows Kenya government sacrifices growth of the country often fawning over the former, and in fewer times coddling up the latter. For a benchmark, see how Europe is investigating Volkswagen; or perhaps US grand fines against the big banks for irregular foreclosures, then US FCC push on net neutrality against its telecom leaders.
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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Profit taking on safaricom counter starts tomorrow. Share price imefika resistance level and the only way is down Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,347 Location: Nairobi
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@murchr - Please do not forget to digress. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 9/11/2014 Posts: 228 Location: Nairobi
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VituVingiSana wrote:@murchr - Please do not forget to digress. Missing someone to spar with (now that Obiero is still recovering from holidays)? Be patient, some of us will join @murchr in a while.
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Rank: Chief Joined: 1/3/2007 Posts: 18,347 Location: Nairobi
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iris wrote:VituVingiSana wrote:@murchr - Please do not forget to digress. Missing someone to spar with (now that Obiero is still recovering from holidays)? Be patient, some of us will join @murchr in a while. Haraka! I get busy from the 11th. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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Airtel is run like a kiosk and so unprofessional;they won't be able to match up with the professionalism that is at Safaricom and Hellios if they decide to bring their own management. I see them slipping to number 3 being overtaken by Hellios Telkom Kenya. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 6/2/2011 Posts: 4,824 Location: -1.2107, 36.8831
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Ericsson wrote:Airtel is run like a kiosk and so unprofessional;they won't be able to match up with the professionalism that is at Safaricom and Hellios if they decide to bring their own management.
I see them slipping to number 3 being overtaken by Hellios Telkom Kenya. I agree 100%. This Dukawalla mentality should stop, if they are to be in Afrika for a long time. Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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murchr wrote:Gordon Gekko wrote:@iris, I have no grudge against success. I have a major problem with monopolistic control over critical sectors, worse, control over several critical sectors. If safcom, which today can shut down Kenya's financial sector takes control of the security sector (which it will at the conclusion of the cops project), we will have sold ourselves to vodacom.
There's a reason why we have a competition authority in Kenya, there's a reason why Bell Telephones in the US was broken up, there's a reason why there are active plans to breakup Google. There's also a reason why any political leader ensures that he fully controls the financial, information and security arms of government. Safaricom is nowhere near what Bell systems was...eish! Google will not be broken, not in today's corporate World. More and more companies are consolidating SABMiller, the world’s second-largest brewer, is being taken over by its bigger rival, AB InBev if the merger is completed, half the profits of the worlds beer market will be held by this company. Did this Safaricom "too big", "dominance" story ever end? In the news "AT&T Inc. has reached an agreement to buy Time Warner Inc. for $85.4 billion in a deal that would transform the phone company into a media giant"."In the world of media, bigger remains better.
So in the wake of Comcast’s $30 billion takeover of NBCUniversal and Verizon Communications’ serial acquisitions of the Huffington Post and Yahoo, AT&T has bought one of the remaining crown jewels of the entertainment industry.
The telecommunications giant agreed on Saturday to buy Time Warner, the home of HBO and CNN, for about $85.4 billion, creating a new colossus capable of both producing content and distributing it to millions with wireless phones, broadband subscriptions and satellite TV connections.""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: 6/23/2009 Posts: 14,217 Location: nairobi
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Future of Safaricom - break up due to dominance!
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