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Equity Bank unveils its MVNO strategy
Rank: Chief Joined: 1/13/2011 Posts: 5,964
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chemos wrote:No one seems to be talking about the medium Equity will be using to facilitate this product. As much as Equity might have a good product has anyone thought about the reliability of Airtel Network. This i know for a fact will be a big letdown to Equity Model. Airtel Networks Uptime in terms of service availability is wanting. I know of sites going down and resolutions taking more than a day, even weeks. This happens even with major hubs that serve huge geographical areas.
They might have SLA agreements with airtel but i can bet you will be hearing of people complaining all the time about transactions not going through due to network issues.
'Air Patel' will give JM quite some sleepless nights this i can assure you.... Though KE is not mentioned expressly, probably... Bharti Airtel divests African telecom tower assets to Eaton Read more at: http://www.moneycontrol....?utm_source=ref_article
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Rank: Elder Joined: 7/22/2009 Posts: 7,535
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chris79 wrote:MaichBlack wrote:@kingotore
1) Equity has some of the lowest charges if not the lowest! Which bank are the customer you talk about moving to?
2) Of the other points, the one's that are factual (some are definitely not!), what are the chances Equity's top management have not thought about them??
It's amazing how people imagine major companies just wake up and introduce new products and services without considering some basic aspects. Do you know the number of meetings that are held monthly/weekly on this one issue alone? A committee complete with subcommittees is in place with all possible issues looked at and discussed at length. Anyone who has ever held a management position knows how these things work! It's okay to critic but lets not be too simplistic. And what makes you think the guys over at Waiyaki way are sitting on their hands waiting for the onslaught? They are not. And that is why they are running all over screaming about the thin sim. This action alone shows how scared they are. And Equity already have a customer base. This customers will get a thin sim free of charge to perform transactions that could have taken them to the banking hall. The will then notice that things they used to do in Mpesa are also available, cheaper and more convenient - you don't have to withdraw your money first. Kwisha. Watch this space. If I have an Equity Bank account and I can access it on my phone, send you money and you withdraw from an Equity Bank agent near you, I will automatically ignore Mpesa - especially if Equity is cheaper. Which it is. Disclaimer: I own both Equity and Safaricom shares. I therefore hope Safaricom doesn't get a serious kichapo. They can both co-exist! 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: Veteran Joined: 7/3/2007 Posts: 1,634
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chemos wrote:No one seems to be talking about the medium Equity will be using to facilitate this product. As much as Equity might have a good product has anyone thought about the reliability of Airtel Network. This i know for a fact will be a big letdown to Equity Model. Airtel Networks Uptime in terms of service availability is wanting. I know of sites going down and resolutions taking more than a day, even weeks. This happens even with major hubs that serve huge geographical areas.
They might have SLA agreements with airtel but i can bet you will be hearing of people complaining all the time about transactions not going through due to network issues.
'Air Patel' will give JM quite some sleepless nights this i can assure you.... Good point, @Chemos. However, talking of network reliability, have you tried to use Safaricon lately? Poor reception, over 30% dropped calls, SMSes that disappear into a black-hole somewhere......The last time I experienced such terrible service was in South Sudan five years ago. I am seriously thinking of voting with my feet, but to where? And then I saw recently that Safaricon has declared over 18 billion shillings divided. Hello? Yes, Waiyaki Way? Has someone, anyone, in those glass towers ever heard of misplaced priorities?
No? But you have heard of JM? Oh, and you are thin...hello? Hello? Hello, can you hear me? Yes, I know, the network...helloo? (damn!, call dropped again).The moral of the story is: Most of the divided money should have been reinvested in network upgrading and to create a war chest to fight Equity/MVNO and other Mafisi. "The opposite of a correct statement is a false statement. But the opposite of a profound truth may well be another profound truth." (Niels Bohr)
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Rank: Elder Joined: 6/17/2008 Posts: 23,365 Location: Nairobi
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MaichBlack wrote:chris79 wrote:MaichBlack wrote:@kingotore
1) Equity has some of the lowest charges if not the lowest! Which bank are the customer you talk about moving to?
2) Of the other points, the one's that are factual (some are definitely not!), what are the chances Equity's top management have not thought about them??
It's amazing how people imagine major companies just wake up and introduce new products and services without considering some basic aspects. Do you know the number of meetings that are held monthly/weekly on this one issue alone? A committee complete with subcommittees is in place with all possible issues looked at and discussed at length. Anyone who has ever held a management position knows how these things work! It's okay to critic but lets not be too simplistic. And what makes you think the guys over at Waiyaki way are sitting on their hands waiting for the onslaught? They are not. And that is why they are running all over screaming about the thin sim. This action alone shows how scared they are. And Equity already have a customer base. This customers will get a thin sim free of charge to perform transactions that could have taken them to the banking hall. The will then notice that things they used to do in Mpesa are also available, cheaper and more convenient - you don't have to withdraw your money first. Kwisha. Watch this space. If I have an Equity Bank account and I can access it on my phone, send you money and you withdraw from an Equity Bank agent near you, I will automatically ignore Mpesa - especially if Equity is cheaper. Which it is. Disclaimer: I own both Equity and Safaricom shares. I therefore hope Safaricom doesn't get a serious kichapo. They can both co-exist! Equity already has EAZZY 247 yet most of it's customers still flock the banking hall!!! ..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
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Rank: Member Joined: 4/15/2009 Posts: 371
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Rank: Elder Joined: 11/28/2006 Posts: 1,799
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Wakanyugi wrote:chemos wrote:No one seems to be talking about the medium Equity will be using to facilitate this product. As much as Equity might have a good product has anyone thought about the reliability of Airtel Network. This i know for a fact will be a big letdown to Equity Model. Airtel Networks Uptime in terms of service availability is wanting. I know of sites going down and resolutions taking more than a day, even weeks. This happens even with major hubs that serve huge geographical areas.
They might have SLA agreements with airtel but i can bet you will be hearing of people complaining all the time about transactions not going through due to network issues.
'Air Patel' will give JM quite some sleepless nights this i can assure you.... Good point, @Chemos. However, talking of network reliability, have you tried to use Safaricon lately? Poor reception, over 30% dropped calls, SMSes that disappear into a black-hole somewhere......The last time I experienced such terrible service was in South Sudan five years ago. I am seriously thinking of voting with my feet, but to where? And then I saw recently that Safaricon has declared over 18 billion shillings divided. Hello? Yes, Waiyaki Way? Has someone, anyone, in those glass towers ever heard of misplaced priorities?
No? But you have heard of JM? Oh, and you are thin...hello? Hello? Hello, can you hear me? Yes, I know, the network...helloo? (damn!, call dropped again).The moral of the story is: Most of the divided money should have been reinvested in network upgrading and to create a war chest to fight Equity/MVNO and other Mafisi. Load the air patel network with even 3 million subscriber activity from equitel and then you will know what network reliability actually is. And to add onto that the YU subscribers being loaded onto airtel network also introduces capacity challenges that air patel have to handle immediately. Await the constant fights JM will be having with air patel over capacity and availability issues. Granted the Green monster will get some beating in the initial phases but dont underestimate them. MPESA servers are now localized, testing ongoing and should be commercialized before nov. Renegotiated license fees with Vodafone for MPESA transactions.(They can match the pricing on MPESA charges) And now acquisition of YU frequencies and network infrastructure.. This all translates to more network capacity for the green monster and i even foresee a situation where equity buys excess capacity from safcom to cater for shortcomings from air patel.
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Rank: Member Joined: 7/24/2010 Posts: 237 Location: nairobi
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Lets now sit and see how things move, i see the share at 100 1n 2015.
Am am seeing a situation where i will not need hard cash to do any shopping. A win for central bank.
On a different note i have noted many people calling/using orange line and i have saved their safaricom numbers.
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Rank: Elder Joined: 3/2/2007 Posts: 8,776 Location: Cameroon
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The GoK will probably be leaning towards one of these beasts for obvious reasons. It is such great news that Kenya and kenyans have managed to raise these monsters to where they are today. With the exit of Yu and the manoeuvres by EB, Airtel is poised to gain significantly (unfortunately it's not our own). TULIA.........UFUNZWE!
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Rank: Member Joined: 8/19/2014 Posts: 125
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If MVNO becomes a success they will roll out to be a full telecom soon in case of too much capacity issues. This is my guess. MVNO is just a cheap and easier way to roll out so that they dont suffer the massive losses that YU suffered
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Rank: Chief Joined: 5/9/2007 Posts: 13,095
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innovator wrote:Lets now sit and see how things move, i see the share at 100 1n 2015.
Am am seeing a situation where i will not need hard cash to do any shopping. A win for central bank.
On a different note i have noted many people calling/using orange line and i have saved their safaricom numbers. Maybe the 'did you know...' And the 'do the maths...' campaigns are working.
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Rank: Veteran Joined: 8/25/2012 Posts: 1,826
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McReggae wrote:MaichBlack wrote:chris79 wrote:MaichBlack wrote:@kingotore
1) Equity has some of the lowest charges if not the lowest! Which bank are the customer you talk about moving to?
2) Of the other points, the one's that are factual (some are definitely not!), what are the chances Equity's top management have not thought about them??
It's amazing how people imagine major companies just wake up and introduce new products and services without considering some basic aspects. Do you know the number of meetings that are held monthly/weekly on this one issue alone? A committee complete with subcommittees is in place with all possible issues looked at and discussed at length. Anyone who has ever held a management position knows how these things work! It's okay to critic but lets not be too simplistic. And what makes you think the guys over at Waiyaki way are sitting on their hands waiting for the onslaught? They are not. And that is why they are running all over screaming about the thin sim. This action alone shows how scared they are. And Equity already have a customer base. This customers will get a thin sim free of charge to perform transactions that could have taken them to the banking hall. The will then notice that things they used to do in Mpesa are also available, cheaper and more convenient - you don't have to withdraw your money first. Kwisha. Watch this space. If I have an Equity Bank account and I can access it on my phone, send you money and you withdraw from an Equity Bank agent near you, I will automatically ignore Mpesa - especially if Equity is cheaper. Which it is. Disclaimer: I own both Equity and Safaricom shares. I therefore hope Safaricom doesn't get a serious kichapo. They can both co-exist! Equity already has EAZZY 247 yet most of it's customers still flock the banking hall!!! you can not deposit or withdraw cash via that 247 thing, it times out before even getting to the service you need, I think that formed part of the reason the members wanted to control the ka technology part.
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Rank: Elder Joined: 7/21/2010 Posts: 6,187 Location: nairobi
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Equity gets the official go ahead from cak and cbk "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 5/27/2008 Posts: 3,760
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mlennyma wrote:Equity gets the official go ahead from cak and cbk Did safcom expect a different outcome? Who's the chairman of CAK, who's the Governor of CBK, who's the chair of parliament energy committee, who are the largest shareholders of ekuete? But at least we get to tame the green monster, maybe slay it?
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Rank: Member Joined: 7/24/2010 Posts: 237 Location: nairobi
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Rank: Member Joined: 6/14/2010 Posts: 521 Location: Nairobi
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mlennyma wrote:Equity gets the official go ahead from cak and cbk This was expected.
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Rank: Member Joined: 7/20/2011 Posts: 161 Location: nairobi
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tom_boy wrote:FRM2011 wrote:I didn't want to comment on this thread until an equity staff told me something that scared me yeterday. He said, Dr.JM had once told a group of senior mgrs that the only company left for him to conquer was safaricom.
I hope it was a lie, I hope he was exaggerating. If not, then Lee Kun Hee, Samsung's president in 1997 comes to mind. Lee had a larger than life personality within Samsung. He had transformed Samsung and brought it huge success. His senior managers could not dare to express their reservations on wrong decisions made by Lee. So 1997, Lee started Samsung motors which folded a year later having lost $15bn of shareholders money.
The parallels with JM's entry into mobile telephony are too eerie to ignore.
When Jack Ma, Alibaba founder, was faced with eBay's entry into China, he told his staff;
"We are a crocodile in the Yangtze river and eBay is a shark in the ocean. We take the war to the ocean we die, we bring the war to the river we win"
He kept the war in his territory and his net worth now stands at $25bn after the IPO yesterday.
But Dr.JM has decided to get into the ocean and fight with a brutal and ruthless shark. It can only end one way.
Studies have proven that people are less likely to make optimal decisions after long periods of success.
I would wish to re-visit this thread after 3 years. I hope the fight between the crocodile and the shark will last that long. Some people feel that JM cannot fail but I can think of some instances where he has failed 1. JM had the first opportunity to partner with Safcom on mobile banking. As we speak, mpesa could well be an equity bank - Safcom product. I feel that JM refused to negotiate because maybe his ego would not allow him to bow down to Safaricoms demands. That was a big mistake. 2. Entry strategy into Uganda was a big mistake. They made serious losses initially. I dont know if anyone was to blame for this but it shows that Equity also makes mistakes. 3. Equity had a health insurance product launched a long time ago. Does anyone hear about it any more? I know some people are using it but it did not turn out to be the revolution that everyone was expecting. What happened? 4. Their regional expansion had to be put on hold at some point due to poor execution. At that time JM was talking of going to West Africa and even SA. This shows a man who wants to achieve his dreams no matter what. I have noted that ventures that involved collaboration with other players have not gone well. JM had to establish his own telcom unit so as to provide mobile money transfer. This was not really necessary. Now lets wait and see how things will pan out. It still wont be a walk in the park. JM has to fight safaricom plus kcb plus cba. Scangroup, nation et al will be laughing all the way to the bank. 1. We do not know the man well enough to say his Ego blah blah blah. 2. JM is not the owner of bank. Helios is. Look them up. We are making this argument too simplistic. 3. Like someone said b4 Equity is looking to change how Wanjiku transacts. Its about making equity a lifestlye. Keep the money within Equity. 4. I dont expect Equity to KO Safcom... Twill be just a slight tap on the bumm(worth a few billions perhaps?) Patience. You cannot have a baby in one month by impregnating nine women....
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Rank: Member Joined: 10/28/2008 Posts: 41
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One of the best things about Mpesa was the pay bill option. Convenience personified. If Equity can sign deals with big players ie, Kenya Power, Nairobi Water, Multichoice etc, then that would be a big sell. Not only that, these corporate entities would presumably have to open accounts with Equity. Ching! The crowd will cheer your coronation as well as your beheading. People like a show, that's all.
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Rank: New-farer Joined: 7/29/2014 Posts: 10 Location: Nairobi
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Am not letting Safaricom con me anymore, although I managed to keep their line for mpesa only. Come equity and niko na safaricom will be like a broken record for me.
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Rank: Chief Joined: 1/3/2007 Posts: 18,187 Location: Nairobi
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tom_boy wrote:FRM2011 wrote:I didn't want to comment on this thread until an equity staff told me something that scared me yeterday. He said, Dr.JM had once told a group of senior mgrs that the only company left for him to conquer was safaricom.
I hope it was a lie, I hope he was exaggerating. If not, then Lee Kun Hee, Samsung's president in 1997 comes to mind. Lee had a larger than life personality within Samsung. He had transformed Samsung and brought it huge success. His senior managers could not dare to express their reservations on wrong decisions made by Lee. So 1997, Lee started Samsung motors which folded a year later having lost $15bn of shareholders money.
The parallels with JM's entry into mobile telephony are too eerie to ignore.
When Jack Ma, Alibaba founder, was faced with eBay's entry into China, he told his staff;
"We are a crocodile in the Yangtze river and eBay is a shark in the ocean. We take the war to the ocean we die, we bring the war to the river we win"
He kept the war in his territory and his net worth now stands at $25bn after the IPO yesterday.
But Dr.JM has decided to get into the ocean and fight with a brutal and ruthless shark. It can only end one way.
Studies have proven that people are less likely to make optimal decisions after long periods of success.
I would wish to re-visit this thread after 3 years. I hope the fight between the crocodile and the shark will last that long. Some people feel that JM cannot fail but I can think of some instances where he has failed 1. JM had the first opportunity to partner with Safcom on mobile banking. As we speak, mpesa could well be an equity bank - Safcom product. I feel that JM refused to negotiate because maybe his ego would not allow him to bow down to Safaricoms demands. That was a big mistake. 2. Entry strategy into Uganda was a big mistake. They made serious losses initially. I dont know if anyone was to blame for this but it shows that Equity also makes mistakes. 3. Equity had a health insurance product launched a long time ago. Does anyone hear about it any more? I know some people are using it but it did not turn out to be the revolution that everyone was expecting. What happened? 4. Their regional expansion had to be put on hold at some point due to poor execution. At that time JM was talking of going to West Africa and even SA. This shows a man who wants to achieve his dreams no matter what. I have noted that ventures that involved collaboration with other players have not gone well. JM had to establish his own telcom unit so as to provide mobile money transfer. This was not really necessary. Now lets wait and see how things will pan out. It still wont be a walk in the park. JM has to fight safaricom plus kcb plus cba. Scangroup, nation et al will be laughing all the way to the bank. 1) M-Kesho failed when the cost [Safcom charging Equity Bank or its customers 4/- per USSD session. Safcom didn't want to share the pie. That's why EAZZY 247 is not full-featured coz of the issue of costs. Paying 4/- a USSD session x 2.5mn sessions/day adds up fast. Even checking the balance is a session. 2) Yes, UG was a mistake. The mistake was NOT going into UG but the (very) poor Due Diligence on the Loan Book. Equity did not buy any other banks after that but went in with 'greenfield' projects after the Uganda Microfinance Ltd debacle when they absorbed staff, bad loans, etc... Next time Equity 'buys' a bank, I expect a claw-back provision where the Seller absorbs losses from bad loans. 3) Equihealth is around. And growing. A huge business as part of the overall BancAssurance business of Equity Bank. And posed to grow further with the MVNO using the menu. 4) West Africa is on the cards BUT not until 2015-16. And even then it will be a slow rollout. First country is Ghana. The MVNO has to be fully rolled out in Kenya before Ghana is considered. Airtel is #2 or #3 in Ghana. Scangroup and Nation will benefit but Word of Mouth + Social Media is a cheaper way to go. Yes, Scangroup has Squad Digital to manage Social Media. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,187 Location: Nairobi
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jwatesh wrote:Kausha wrote:I bet air patel are rubbing their hands with glee at the prospect of someone else throwing shit loads of money into an expensive fight that is the fight against safaricon. This will be protracted and i will take a break from the EB stock and watch from the safaricom corner.
notice EB has had little success outside its core space in Kenya. I just wish they would be more aggressive outside Kenya. Especially Tanzania and move into DRC & Nigeria. 50 million people in Tz. Get those cheap deposits Tanzania is a tough place to do business for Kenyan firms. There are no 'cheap deposits. And those 'cheap' deposits need to be lent out. Who would borrow those cheap deposits? The huge portion of Tanzanians who think loans are grants! Most micro-finance institutions in TZ loan to salaried people [who are hardly fired] so they use the salary check-off system. Micro-loans like those in KE are hard to collect on. Equity needs to concentrate on cross-border business e.g. KE-TZ or TZ-RW trade before they grow their retail business. Other banks e.g. NIC and I&M [these deal with high net-worth individuals and mid-sized corporates] are also having it tough in TZ coz of cultural differences on how loans are processed, secured, drawn on or repaid. Notice how the rush into TZ by Kenyan firms [including banks] has slowed down. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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