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Safaricom to acquire Interconnect & IGO wireless
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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jguru wrote:After all the arguing, BOTTOM LINE is, Safaricom IS a MONOPOLY. Monopolies SHOULD be REGULATED. But, after a complete sim card registration of all subscribers, I wonder if Safaricom will still have 10 million subscribers on it's books?  safcom is not a monopoly at all.. there just a dominant player with a lot of jealous competitors and about its subscribers.... it has 17million phone subscribers and 10million MPESA subscribers Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 10/13/2009 Posts: 1,950 Location: in kenya
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mukiha wrote:@Selah; did you know that it is cheaper to call YU-to-SCOM, than SCOM-to-SCOM?
It was the same thing a while ago, ZAIN-to-SCOM was cheaper than SCOM-to-SCOM. Then Zain hiked the cross-net charge....and I moved to YU I am not disputing the calling rate advantage my point is the value I get from safaricom i.e M-Pesa,credit loan,call back service and easy in getting the air time,am ready to pay that extra 2 bob. For you to appreciate safaricom services just try the alternative and dont say you will loose important contact since yu and orange now offer the SMS referall services. '......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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Rank: Elder Joined: 9/15/2006 Posts: 3,907
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@Tony Stark
AT&T:
US promoted a government sactioned monopoly with the aim of avoiding duplication. AT&T owned the national, regional, special government projects; plus all the telephones which they rented out to consumers.
Issues: cross subsidies, refusal to deal, predatory pricing
Consequence: AT&T sold regional holdings concentrating on long-distance services, special federal projects, and got permission to go into computer business.
Microsoft:
Microsoft operating system was bundled with a web browser software, for free; at the expense of rivals. APIs were manipulated to favour performance of IE over Netscape/Opera.
Issue: cross subsidies, refusal to deal, predatory pricing
Consequence: Microsoft required to share its application programming interface with third parties so they can compete with IE fairly.
Points to Note:
1. In both cases, companies were providing a platform which other competitors rely on.
2. Department of Justice had to initiate civil actions in court, for legal determination, on whether the companies were abusing monopolies.
3. Safaricom does not provide any platform used by any of the other companies; except in the case of interconnection. Hence government sets interconnect rates for all players.
4. Safaricom is undoubtedly expensive in most respects. There's no product being subsidized to ensure customers don't move.
5. Existence of club effect in Kenya is not synonymous with anticompetitive behaviour; existence of a monopoly is also not synonymous with anticompetitive behaviour.
Data Wars:
KDN currently has a monopoly of fibre, bred out of foresight. Orange are politicing hard to fight it.
If Safaricom triumphs in the end, it will be out of brilliant strategy/customer focus - or should they just be thrown out of the game?
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Rank: Elder Joined: 9/15/2006 Posts: 3,907
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@Tony Stark, whooosh! Got left behind there, trying to catch up with all your passion.
Somer few rebuttals:
1. Commercial banks' charge whatever they want for wire transfer to their customers - the problem is what they charge other banks. That is why in telecos, interconnection rates are set by CCK.
2. Even if 80% of population banked with Equity Bank, that in itself would not constitute anticompetitive behaviour.
3. So assuming 80% of population have accounts with Equity, and I have a loan product. Equity Bank has always offered loans; she would be under no obligation to open her customer to my loans - piggy banking on their hard work.
I would have to give a very attractive proposititon to the wananchi to attract them to me.
4. Same case applies to if I was a small jua kali guy offering debt collection services. Equity has no obligation to choose to work with me.
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Rank: Chief Joined: 1/3/2007 Posts: 18,293 Location: Nairobi
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As an FYI... My bank (CFCStanbic) was overcharging (IMHO) for EFT... Kenya Bankers Assoc has recommended a much lower fee... I complained to CFCS, then to KBA... finally, CFCS went with the KBA fee... In the meantime, I had opened an account elsewhere (I&M) & now I do not need/use CFCS as much... Ironically, their bid to make more off me jolted me... Now I have a 'dormant/emergency' account at CFCS but a permanent at I&M Bank... So it is not regulation by diktat but competition through pricing & services... Barclays & StanChart were the big boys... now Equity is eating their lunch coz of SERVICE (many ATMs & branches) + AFFORDABILITY... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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@VVS: Case Closed; we win! Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Chief Joined: 1/3/2007 Posts: 18,293 Location: Nairobi
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@mukiha - The real test is in the real world... What will happen if no-one (politics) dares oppose the Bill... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 7/8/2008 Posts: 947
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mukiha wrote:@VVS: Case Closed; we win! Well that might be true for this argument! VituVingiSana wrote:@mukiha - The real test is in the real world... What will happen if no-one (politics) dares oppose the Bill... So very true. An article in the BD http://www.businessdailyafrica..../0/-/mf6pil/-/index.html in May said antitrust experts from the states are coming to assist monopolies and price comission set new rules. This was after safcom complained that newly introduced rules to regulate their unfair practices were unfair to them. Haiya basi lets see what the "experts" from America say. The response will be similar to the previous report. Safaricom is going to get a slap on the wrist but might hopefully lead to changes by the provider.
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Safcom wins coz they value their customers. I used to have a zain line 2 years ago from which i made most of my calls. Saf was for receiving calls. Then i misplaced the zain line and it was inactivated. When i went to get a replacement, they asked me to pay sh 100 for a replacement. Of course i told them to go to hell and i have never considered them again. Life is short. Live passionately.
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Rank: Chief Joined: 1/3/2007 Posts: 18,293 Location: Nairobi
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sparkly wrote:Safcom wins coz they value their customers. I used to have a zain line 2 years ago from which i made most of my calls. Saf was for receiving calls. Then i misplaced the zain line and it was inactivated. When i went to get a replacement, they asked me to pay sh 100 for a replacement. Of course i told them to go to hell and i have never considered them again. Same thing at Telkom! They wanted 100/- to replace my RUIM (CDMA) for a lost line but a new line was free! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 12/4/2009 Posts: 1,982 Location: matano manne
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Now that Safcom has decided to trail blaze into data and M-Kesho banking, count 3-5 years and some fellows will be complaining that it is a monopoly in these sectors. Zain is busy shopping for beauticians to give it a new look, Telkom complaining and Yu are indifferent. I think Safcom is the giraffe in this industry!
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Rank: Chief Joined: 1/3/2007 Posts: 18,293 Location: Nairobi
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Rahatupu wrote:Now that Safcom has decided to trail blaze into data and M-Kesho banking, count 3-5 years and some fellows will be complaining that it is a monopoly in these sectors. Zain is busy shopping for beauticians to give it a new look, Telkom complaining and Yu are indifferent. I think Safcom is the giraffe in this industry! Typical Kenyan style... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 11/7/2007 Posts: 2,182
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orange charges free to replace their lines these days, zain has been charging free since sana, i have lost 2 zain sim-cards, i got the replacement for free, as for beautification, its only that they have a new owner, now that zain has acquired the 3G service lets see how the cookie crumbles. hey does that mean orange does not have 3G? yet their speeds aren't that bad!! wonder where they will be after 3G acquisition.  LOVE WHAT YOU DO, DO WHAT YOU LOVE.
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Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
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Now zain/airtel has also gotten 3G. It's gonna be interesting. I watched a repeat of MJ on the bench with Jeff Koinange and that is one man who knows what he's doing. I was very impressed.
BBI will solve it :)
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Rank: Chief Joined: 1/3/2007 Posts: 18,293 Location: Nairobi
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While Zain + Orange is struggling with 3G... Safaricom will be on 4G... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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Chasing 3G is a redundant game, Zain should have got 4G and beaten Safcon at their game. Business opportunities are like buses,there's always another one coming
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Rank: Chief Joined: 1/3/2007 Posts: 18,293 Location: Nairobi
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KulaRaha wrote:Chasing 3G is a redundant game, Zain should have got 4G and beaten Safcon at their game. 4G included with 3G license... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/15/2006 Posts: 3,907
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I understand that 4G uses different techonology - perhaps a version of LTE - thus new spectrum. And CCK has been reluctant to approve the same for Safaricom due to new 'competition problems' (x50 speed) it creates.
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Rank: Chief Joined: 1/3/2007 Posts: 18,293 Location: Nairobi
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muganda wrote:I understand that 4G uses different techonology - perhaps a version of LTE - thus new spectrum. And CCK has been reluctant to approve the same for Safaricom due to new 'competition problems' (x50 speed) it creates. CCK are a bunch of effing idiots... Let safaricom do 4G... I want faster speeds! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
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muganda wrote: new 'competition problems' (x50 speed) it creates. And what's the problem with that?
BBI will solve it :)
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