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Airtel quitting??
Rank: Veteran Joined: 7/5/2010 Posts: 2,061 Location: Nairobi
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sitaki.kujulikana wrote:quicksand wrote:sitaki.kujulikana wrote:quicksand wrote:pilgrimage wrote:I have never understood the marketing strategy of Airtel Kenya.I always wonder how they hope to penetrate the voice and data market especially the later with such poor coverage.All over kenya (i have travelled widely), there are only pockets of coverage and only mainly around major urban centres.If you inside the house,you will be lucky if you get anything. Meanwhile you can get Safaricom even in a deep cave.
I went to a Airtel shop and i was told,'inakuwanga hivyo'.A friend of mine said that either Airtel have no clue what they are doing or someone is seriously sabotaging them.
..the management has ONE tool and one tool only in their arsenal. Cost Reduction. Not cost management or cost control. They attack every business problem with this. A terrible way to strategise as operations will go wrong if you don't get inventive. And when in a hole, they double down. Imagine your child gets ill, the doc says its malnutrition cause you have had him on a kale only diet; hence you need to supplement his diet with meat, milk and some beans...and you go...No!too costly! Need to reduce the kales to one meal a day! It is like that with Airtel. A good case of the king is naked when it comes to their management and this cost thing. Even a monkey can see it. A company with 6+ million subs ought to make some money...Saf has what, 23+ million? Thats four times, so being very generous, they should be able to haul in a tenth of what Saf makes surely? 3 billion is not a bad payday. Instead, Safaricom has them beat by the 15th second of each business day. Mind boggling. easy said, they seem to be doing well in their other markets, so I am sure they know one or two things about the industry as compared to say 'monkeys' I don't know if you have ever tried selling stuff to kenyans, we at times can be peculiar beings, there is this electrical shop huko down town, and despite there being many other shops around it people still prefer to go make a queue hapo disregarding the others, despite all the shops sourcing their stuff from similar suppliers. another example is with pubs/nyama joints you might find guys struggling to get parking at an establishment while next door the other guys are near empty. sometimes it just happens, not due to brilliance or skills, people just flock to some and ignore others. ..its hyperbole chief. That said, my point remains valid. The 6+ million subscribers on their roster are very real customers...and yes, the Kenyan market is unique, challenging even but not insurmountable. Zuku guys are roughly in the same domain with fewer customers and a smaller war chest and yet they seem to eke revenue and subsistence still. The kenyan market is different from other countries, much like how we have superb internet infrastructure, our Human development more developed compared to the rest of most of Africa; As such, they should retweaked their business model to adapt to Kenya and not try to shoehorn Kenya into fitting their idea of what an African market is like. Kenyans are smart and price sensitive too. They will pick a solution that makes economic sense to them. The brand loyalty to Safaricom is not totally blind, which is why Equity got some traction with Equitel despite running on a hosted network. Finally, I have a more than common insight in the Kenya telecomms space. sawa mimi sina insight huko, I am just a keyboard/google fed analyst but is comparing zuku biashara to that of a mobile operator taking it a little bit too far especially when looking at revenues, my keyboard ninja in me tells me zuku is more specific, they target a controlled market segment unlike airtel who have to cater to non existent customers. plus if you go into a market you have your projections and if you fail to get the same you exit, ama telcom space huenda aje Sure. But they should not try that well worn line about Safaricom being a monopoly and thus the reason they can't make money. They are inflexible and the market has delivered a mighty donkey's kick to the butt. Pure management problem. There is money to be made in Kenya.
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Rank: Veteran Joined: 8/25/2012 Posts: 1,826
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quicksand wrote:sitaki.kujulikana wrote:quicksand wrote:sitaki.kujulikana wrote:quicksand wrote:pilgrimage wrote:I have never understood the marketing strategy of Airtel Kenya.I always wonder how they hope to penetrate the voice and data market especially the later with such poor coverage.All over kenya (i have travelled widely), there are only pockets of coverage and only mainly around major urban centres.If you inside the house,you will be lucky if you get anything. Meanwhile you can get Safaricom even in a deep cave.
I went to a Airtel shop and i was told,'inakuwanga hivyo'.A friend of mine said that either Airtel have no clue what they are doing or someone is seriously sabotaging them.
..the management has ONE tool and one tool only in their arsenal. Cost Reduction. Not cost management or cost control. They attack every business problem with this. A terrible way to strategise as operations will go wrong if you don't get inventive. And when in a hole, they double down. Imagine your child gets ill, the doc says its malnutrition cause you have had him on a kale only diet; hence you need to supplement his diet with meat, milk and some beans...and you go...No!too costly! Need to reduce the kales to one meal a day! It is like that with Airtel. A good case of the king is naked when it comes to their management and this cost thing. Even a monkey can see it. A company with 6+ million subs ought to make some money...Saf has what, 23+ million? Thats four times, so being very generous, they should be able to haul in a tenth of what Saf makes surely? 3 billion is not a bad payday. Instead, Safaricom has them beat by the 15th second of each business day. Mind boggling. easy said, they seem to be doing well in their other markets, so I am sure they know one or two things about the industry as compared to say 'monkeys' I don't know if you have ever tried selling stuff to kenyans, we at times can be peculiar beings, there is this electrical shop huko down town, and despite there being many other shops around it people still prefer to go make a queue hapo disregarding the others, despite all the shops sourcing their stuff from similar suppliers. another example is with pubs/nyama joints you might find guys struggling to get parking at an establishment while next door the other guys are near empty. sometimes it just happens, not due to brilliance or skills, people just flock to some and ignore others. ..its hyperbole chief. That said, my point remains valid. The 6+ million subscribers on their roster are very real customers...and yes, the Kenyan market is unique, challenging even but not insurmountable. Zuku guys are roughly in the same domain with fewer customers and a smaller war chest and yet they seem to eke revenue and subsistence still. The kenyan market is different from other countries, much like how we have superb internet infrastructure, our Human development more developed compared to the rest of most of Africa; As such, they should retweaked their business model to adapt to Kenya and not try to shoehorn Kenya into fitting their idea of what an African market is like. Kenyans are smart and price sensitive too. They will pick a solution that makes economic sense to them. The brand loyalty to Safaricom is not totally blind, which is why Equity got some traction with Equitel despite running on a hosted network. Finally, I have a more than common insight in the Kenya telecomms space. sawa mimi sina insight huko, I am just a keyboard/google fed analyst but is comparing zuku biashara to that of a mobile operator taking it a little bit too far especially when looking at revenues, my keyboard ninja in me tells me zuku is more specific, they target a controlled market segment unlike airtel who have to cater to non existent customers. plus if you go into a market you have your projections and if you fail to get the same you exit, ama telcom space huenda aje Sure. But they should not try that well worn line about Safaricom being a monopoly and thus the reason they can't make money. They are inflexible and the market has delivered a mighty donkey's kick to the butt. Pure management problem. There is money to be made in Kenya. that I agree with you, they can't blame safaricom for their issues, and of course the direction a company takes is to a good extent determined by management, that said looking at the current telcom situation in ke, airtel should be sold to a small player who will be ready to accept that small brother position. I am sure if you took the current safaricom management and swapped them with the airtel management nothing much would change, the only hope for any competitor to safcom is a major technological change in the telcoms, or safaricom just committing suicide, that's why I reckon a small player coming in and accepting that role, hoping for some change or mistake from safcom to level or take over the market, but for a big player, itakuwa ngumu, hata akina at&t ama verizon hawawezi toboa.
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Rank: Member Joined: 9/24/2010 Posts: 136 Location: Nairobi
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murchr wrote:Its simple. Airtel does well in other parts of Africa but not Kenya, reason being they dont want to invest in infrastructure hoping that the regulation will change to force safaricom to share their infrastructure. Remember the 4G debate? When Safcom bought licenses Airtel went up in arms saying the license is expensive bla bla. http://www.businessdaily.../-/3vp21uz/-/index.html
I totally agree with you.. they need to invest on infrastructure, infrastructure and infrastructure.. I visited someone close who is admitted in a two-story hospital at Kasarani(Nairobi) and guess what! right inside the wards, A dual-Sim phone showing no network for Airtel but Full network for safaricom.. most patients in there ARE FORCED to communicate to their loved ones and access data using safaricom and this is just one building out of the many experiencing the same within nairobi. Making money never gets boring
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Rank: Elder Joined: 9/15/2006 Posts: 3,905
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Alfylavie wrote:murchr wrote:Its simple. Airtel does well in other parts of Africa but not Kenya, reason being they dont want to invest in infrastructure hoping that the regulation will change to force safaricom to share their infrastructure. Remember the 4G debate? When Safcom bought licenses Airtel went up in arms saying the license is expensive bla bla. http://www.businessdaily.../-/3vp21uz/-/index.html
I totally agree with you.. they need to invest on infrastructure, infrastructure and infrastructure.. I visited someone close who is admitted in a two-story hospital at Kasarani(Nairobi) and guess what! right inside the wards, A dual-Sim phone showing no network for Airtel but Full network for safaricom.. most patients in there ARE FORCED to communicate to their loved ones and access data using safaricom and this is just one building out of the many experiencing the same within nairobi. Other than sudden bleeps in Nigeria/Uganda/Kenya in 2015 (from sale of towers to Eaton), which of their subsidiaries in Africa makes real money?
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Rank: Member Joined: 5/8/2007 Posts: 709
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muganda wrote:Alfylavie wrote:murchr wrote:Its simple. Airtel does well in other parts of Africa but not Kenya, reason being they dont want to invest in infrastructure hoping that the regulation will change to force safaricom to share their infrastructure. Remember the 4G debate? When Safcom bought licenses Airtel went up in arms saying the license is expensive bla bla. http://www.businessdaily.../-/3vp21uz/-/index.html
I totally agree with you.. they need to invest on infrastructure, infrastructure and infrastructure.. I visited someone close who is admitted in a two-story hospital at Kasarani(Nairobi) and guess what! right inside the wards, A dual-Sim phone showing no network for Airtel but Full network for safaricom.. most patients in there ARE FORCED to communicate to their loved ones and access data using safaricom and this is just one building out of the many experiencing the same within nairobi. Other than sudden bleeps in Nigeria/Uganda/Kenya in 2015 (from sale of towers to Eaton), which of their subsidiaries in Africa makes real money? Burkina Faso Ghana Gabon Sierra Leone Chad Tanzania Congo B Zambia Madagascar Uganda Seychelles Malawi Nigeria DRC Africa HQ Niger Rwanda Airtel Africa is a subsidiary of Indian telecommunications company Airtel, that operates in 17 countries across Africa. the issue as someone said is that the indians who run airtel kenya do not want at all to invest in infrastructure, their network even along waiyaki way is pathetic.
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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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Lolest! wrote:Hi Admin,
Link? Admin bana! Why delete that useful post?? OK, who here has the figures for Airtel across Africa?
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Rank: Elder Joined: 9/15/2006 Posts: 3,905
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@Lolest! what does Admin have to do with the info? Annual report pg 261 shows share in profit & loss for each entity for 2016 & 2015 years - link http://www.airtel.in/wps/wcm/co...4-4c48-be12-26c9215209ba@faa none of those quoted countries make real money. faa wrote:muganda wrote:Alfylavie wrote:murchr wrote:Its simple. Airtel does well in other parts of Africa but not Kenya, reason being they dont want to invest in infrastructure hoping that the regulation will change to force safaricom to share their infrastructure. Remember the 4G debate? When Safcom bought licenses Airtel went up in arms saying the license is expensive bla bla. http://www.businessdaily.../-/3vp21uz/-/index.html
I totally agree with you.. they need to invest on infrastructure, infrastructure and infrastructure.. I visited someone close who is admitted in a two-story hospital at Kasarani(Nairobi) and guess what! right inside the wards, A dual-Sim phone showing no network for Airtel but Full network for safaricom.. most patients in there ARE FORCED to communicate to their loved ones and access data using safaricom and this is just one building out of the many experiencing the same within nairobi. Other than sudden bleeps in Nigeria/Uganda/Kenya in 2015 (from sale of towers to Eaton), which of their subsidiaries in Africa makes real money? Burkina Faso Ghana Gabon Sierra Leone Chad Tanzania Congo B Zambia Madagascar Uganda Seychelles Malawi Nigeria DRC Africa HQ Niger Rwanda Airtel Africa is a subsidiary of Indian telecommunications company Airtel, that operates in 17 countries across Africa. the issue as someone said is that the indians who run airtel kenya do not want at all to invest in infrastructure, their network even along waiyaki way is pathetic.
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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muganda wrote:@Lolest! what does Admin have to do with the info? Annual report pg 261 shows share in profit & loss for each entity for 2016 & 2015 years - link http://www.airtel.in/wps/wcm/co...4-4c48-be12-26c9215209ba@faa none of those quoted countries make real money. faa wrote:muganda wrote:Alfylavie wrote:murchr wrote:Its simple. Airtel does well in other parts of Africa but not Kenya, reason being they dont want to invest in infrastructure hoping that the regulation will change to force safaricom to share their infrastructure. Remember the 4G debate? When Safcom bought licenses Airtel went up in arms saying the license is expensive bla bla. http://www.businessdaily.../-/3vp21uz/-/index.html
I totally agree with you.. they need to invest on infrastructure, infrastructure and infrastructure.. I visited someone close who is admitted in a two-story hospital at Kasarani(Nairobi) and guess what! right inside the wards, A dual-Sim phone showing no network for Airtel but Full network for safaricom.. most patients in there ARE FORCED to communicate to their loved ones and access data using safaricom and this is just one building out of the many experiencing the same within nairobi. Other than sudden bleeps in Nigeria/Uganda/Kenya in 2015 (from sale of towers to Eaton), which of their subsidiaries in Africa makes real money? Burkina Faso Ghana Gabon Sierra Leone Chad Tanzania Congo B Zambia Madagascar Uganda Seychelles Malawi Nigeria DRC Africa HQ Niger Rwanda Airtel Africa is a subsidiary of Indian telecommunications company Airtel, that operates in 17 countries across Africa. the issue as someone said is that the indians who run airtel kenya do not want at all to invest in infrastructure, their network even along waiyaki way is pathetic. They got the strategy wrong. India is a 1B population mass market. They compete on pricing and make money. Kenya is a 40m population premium market. Safaricom provides premium services (Mpesa, 4G data, betting) and makes money. Airtel thought they were investing in a single 1B African market but Africa is 50+ different markets each with its own regulatory framework and business environment. Life is short. Live passionately.
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Rank: Elder Joined: 9/15/2006 Posts: 3,905
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sparkly wrote:They got the strategy wrong. India is a 1B population mass market. They compete on pricing and make money. Kenya is a 40m population premium market. Safaricom provides premium services (Mpesa, 4G data, betting) and makes money. Airtel thought they were investing in a single 1B African market but Africa is 50+ different markets each with its own regulatory framework and business environment. Now you're talking @sparkly - concise. Imagine, it may take almost 10 years for them to finally start making money in Africa http://economictimes.ind...rticleshow/55465312.cms
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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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Quote:There was a prevailing sentiment then that Safaricom had matured. A series of regulatory actions had sparked a devastating price war that reduced mobile call rates by 75 per cent. In 2010, just as Mr Collymore’s appointment was being announced, the Indian telecoms giant Bharti Airtel was negotiating to buy Zain Africa for Sh1 trillion ($1 billion). The plan by the Indian operator was to hammer Safaricom to the ground. Investors too had taken a grim view of the company’s prospects and they had sold Safaricom’s shares on the Nairobi Stock Exchange (now Nairobi Securities Exchange) to the point where the company was now half the value it had been listed two years earlier in one of Kenya’s largest and most publicised initial public offering of shares.
The business growth had plateaued, and many pundits argued – wrongly, it turned out – that the mobile telephone market was saturated.
“At the time I was coming in, many people thought this is not really the right time to join a company like this because it can only go down from here but I did not find that very daunting. I said, ‘let me come and do the job and see how we will get on with it’,” Mr Collymore said.
To stop the industry spiraling down into a dramatic catastrophe, Mr Collymore decided to increase prices.
“That was one tough decision,” he says. But it paid off handsomely as the company was able to build reserves for which to build the company that it has now become.
Securing the future, he says, was the reason for the price increase and other industry players quietly stopped the price war and followed suit away from the limelight. Since then, the company has made huge investments to grow the business, leading to the rapid growth.
“Our next phase was putting fibre in the ground or putting fibre on poles to serve connected customers because we really do believe in democratisation of data,” he says.
Over the last six years, Safaricom has invested about Sh30 billion a year in improving and expanding its network which now covers about 95 per cent of the population. http://www.nation.co.ke/...com/1214-3517302-hertji/
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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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muganda wrote:@Lolest! what does Admin have to do with the info?
I demand a new rank-Supreme Leader(for me alone) ama nipayuke Anyway asante for the link
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Rank: New-farer Joined: 7/12/2012 Posts: 55
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I want to bet Equity Holdings through Fintech will buy Airtel Kenya and they will give Safaricom a run for their money. Watch this space!!
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Rank: New-farer Joined: 11/11/2015 Posts: 21 Location: Nakuru
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pilgrimage wrote:I want to bet Equity Holdings through Fintech will buy Airtel Kenya and they will give Safaricom a run for their money. Watch this space!! This would be very interesting to see. Does anyone have a guesstimate of what this would cost? The struggle continues
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Rank: Elder Joined: 9/15/2006 Posts: 3,905
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The latest on Airtel: - considering exits/sales in some African countries (started off with proposed merger in Ghana) https://www.bloomberg.co...-some-africa-operations
- possible dethronement as no.1 operation in India based on proposed merger of Vodafone (2) & Idea (3) http://www.domain-b.com/..._a/20170121_mittal.html
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Rank: Member Joined: 2/20/2015 Posts: 467 Location: Nairobi
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Anbu wrote:pilgrimage wrote:I want to bet Equity Holdings through Fintech will buy Airtel Kenya and they will give Safaricom a run for their money. Watch this space!! This would be very interesting to see. Does anyone have a guesstimate of what this would cost? The beauty of being a MVNO is that Equitel can easily move to Orange or Safaricom(*!#?) without investing or managing a network. To purchase Airtel Kenya and invest much needed CAPEX would need financing from a bigger bank than Equity. Equitel should stick to core business of selling loans and not get distracted with fueling diesel generators and such
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Rank: Veteran Joined: 8/10/2014 Posts: 967 Location: Kenya
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Airtel Unliminet has been changed and from social media i see lots of complains and migrations back to Safaricom. Looks like H2 of 2017 might see an extra bump in data revenue for Safaricom from returning customers
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Rank: Member Joined: 9/24/2010 Posts: 136 Location: Nairobi
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Here we go again Airtel appoints new Kenyan CEO as El Youssefi exits DetailsMaking money never gets boring
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Alfylavie wrote:Here we go again Airtel appoints new Kenyan CEO as El Youssefi exits Details Revolving door "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: 12/4/2009 Posts: 10,671 Location: NAIROBI
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Anbu wrote:pilgrimage wrote:I want to bet Equity Holdings through Fintech will buy Airtel Kenya and they will give Safaricom a run for their money. Watch this space!! This would be very interesting to see. Does anyone have a guesstimate of what this would cost? About sh.20-30bn Wealth is built through a relatively simple equation Wealth=Income + Investments - Lifestyle
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