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Equity Bank unveils its MVNO strategy
Rank: Member Joined: 1/26/2011 Posts: 211 Location: Nairobi
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kollabo wrote:Sasha wrote:CAK and CBK have given Safaricom a lifeline. 1 year in the technology industry is huge; you only have 3 months of first mover advantage in this industry especially where mobile technology is concerned. If Safaricom are bright, and surely they are, they will come up with something to counter this. They are already talking to KCB and Post Bank to explore a response to Equity.
Looking at it from the banking industry, the other banks are running scared more than Safaricom. There are about 200k mobile banking users in the entire industry. Assuming a conversion rate of as low as 10%, Equity will already have more than 4x mobile banking/payments users than the entire market. The cost savings, revenues from transaction fees, increased deposits will give Equity such a significant edge that the other banks just cannot compete with. No wonder the other banks are busy headhunting at Mpesa.
Pardon my ignorance, but im wondering why Safcom would defer to Vodacome for a thin sim?
I think Safcom never saw this coming, and the way they are running around tells me that all is not well at Waiyaki Way>
Equity's Achilles Heel will be their technology model. They have handled technology very badly since they started, what with CBS being down, ATMs not working, EAZZY247 being crap etc. You would hope that they have learnt a lesson and will not make silly blunders. Ask KCB and CfCStanbic how much they have lost because of silly technology mistakes. Word on the ground is Safcom have contacted their mother Vodafone to come up with their own thin SIM.
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Rank: Member Joined: 8/19/2014 Posts: 125
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Equity mbus faster than Lewis Hamilton....
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Rank: Member Joined: 1/26/2011 Posts: 211 Location: Nairobi
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Why would Safcom need a thin sim ?
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Rank: Elder Joined: 7/22/2009 Posts: 7,455
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mlennyma wrote:A dominant player doesn't need a thin sim,its an underdog who needs a thin sim to ride on the dominant sim to pull the dominance down If safcom comes up with a sim card that is incompatible with the thin sim and have all their customers switch to the new sim, they will have bought themselves quite some time. This will be the mother of all wars. It's gonna be long. It's gonna be brutal! 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: Member Joined: 1/26/2011 Posts: 211 Location: Nairobi
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MaichBlack wrote:mlennyma wrote:A dominant player doesn't need a thin sim,its an underdog who needs a thin sim to ride on the dominant sim to pull the dominance down If safcom comes up with a sim card that is incompatible with the thin sim and have all their customers switch to the new sim, they will have bought themselves quite some time. This will be the mother of all wars. It's gonna be long. It's gonna be brutal! @ Maich,it may not be as simple since Safcom would have to roll out new sim cards and hope that Wanjiku would accept them pronto !
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Rank: Elder Joined: 7/22/2009 Posts: 7,455
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mlennyma wrote:BREAKING NEWS:Equity share overtakes kcb share in a fierce trading session Ka ching ching!!! I like. 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: Hello Joined: 10/12/2011 Posts: 7
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I rely hope Safaricom will not steal money from our Mpesa accounts and blame it new technology, and later say,I TOLD YOU!!. Remember they sabotaged number potability and is now a forgotten thing.
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Rank: Elder Joined: 12/2/2009 Posts: 2,458 Location: Nairobi
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MaichBlack wrote:mlennyma wrote:A dominant player doesn't need a thin sim,its an underdog who needs a thin sim to ride on the dominant sim to pull the dominance down If safcom comes up with a sim card that is incompatible with the thin sim and have all their customers switch to the new sim, they will have bought themselves quite some time. This will be the mother of all wars. It's gonna be long. It's gonna be brutal! Why would Safaricom come up with a new SIM. Or am i not getting your point? This battle is starting and its going to be a long one. Beneficiary to me will be the Bank, MPESA will partner with. I see Simba and/or CBA wakipitia kati kati yao
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Rank: Veteran Joined: 9/5/2007 Posts: 627
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@poundfoolish, totally agree on Simba but CBA just don't have the capacity. They are struggling with Mshwari already.
No sense in Safaricom com acquiring a thin sim. I see several things they can do:
1. Allow bank to till payments i.e. you can pay your bill at any merchant directly from your bank account.
2. Allow push USSD on mpesa i.e. make payments on USSD without having to go to STK.
3. Create a new merchant payment tariff and reduce charges levied by banks. Imagine banks charge Kshs 60 per transaction on top of the mpesa charges.
If Safaricom can do this with all the banks in the market, what will make Equity's proposition unique? Like someone said, Equity already have a system for mobile payments (16 merchants) but only process a total of 12,000 transactions per month (i.e. according to their reports).
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Rank: Veteran Joined: 7/3/2007 Posts: 1,634
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MaichBlack wrote:mlennyma wrote:A dominant player doesn't need a thin sim,its an underdog who needs a thin sim to ride on the dominant sim to pull the dominance down If safcom comes up with a sim card that is incompatible with the thin sim and have all their customers switch to the new sim, they will have bought themselves quite some time. This will be the mother of all wars. It's gonna be long. It's gonna be brutal! This could backfire. I can see Equity PR people really going to town with it and invoking the 'us' versus 'them' narrative. Plus there are clear anti-competitive behavior issues here, especially if it could be shown that the only reason they did this was to exploit their monopoly position to keep out a competitor. "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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Already there are 3 players with the MVNO license. Any entity with a significant customer base wants a piece of the cake. KQ already working on it, next we could see Nakumatt, EABL, BAT and the likes joining the fray, interesting times ahead. The consumer will be the ultimate winner!!! ..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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iris wrote:If a hacker (hired or not) could break into the system, wouldn't that concern you? Why is Safaricom acting like Mpesa hasn't/can't be hacked?
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Rank: Veteran Joined: 7/3/2007 Posts: 1,634
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chemos wrote: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. In other words, whatever I do I am screwed. Thank you for being so reassuring. "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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Wakanyugi wrote:chemos wrote: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. In other words, whatever I do I am screwed. Thank you for being so reassuring. I think airtel will survive this because they will mainly be using USSD data from the SIM overlay!!!!!!! ..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
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Rank: Veteran Joined: 7/3/2007 Posts: 1,634
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McReggae wrote:Already there are 3 players with the MVNO license. Any entity with a significant customer base wants a piece of the cake. KQ already working on it, next we could see Nakumatt, EABL, BAT and the likes joining the fray, interesting times ahead. The consumer will be the ultimate winner!!! Famous last words. If only they were true. We said the consumer would benefit when Airtel launched its price war against Safaricom. Instead the price that the consumer has paid is the shrinking of choice (Yu Dead, Orange dying). And now poor reception, dropped calls etc from system degrading and lack of investment in network capacity. "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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Wakanyugi wrote:McReggae wrote:Already there are 3 players with the MVNO license. Any entity with a significant customer base wants a piece of the cake. KQ already working on it, next we could see Nakumatt, EABL, BAT and the likes joining the fray, interesting times ahead. The consumer will be the ultimate winner!!! Famous last words. If only they were true. We said the consumer would benefit when Airtel launched its price war against Safaricom. Instead the price that the consumer has paid is the shrinking of choice (Yu Dead, Orange dying). And now poor reception, dropped calls etc from system degrading and lack of investment in network capacity. Look at the bigger picture, call rates came from an average of 8bob to the current 3bob levels because of the price, the consumer won. Because of Equettes MVNO, already sending money by MPesa for amounts below 2500/- is much cheaper, another win for the consumer! ..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
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Rank: Hello Joined: 11/7/2012 Posts: 4 Location: Nairobi
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whiteowl wrote:iris wrote:If a hacker (hired or not) could break into the system, wouldn't that concern you? Why is Safaricom acting like Mpesa hasn't/can't be hacked? This is the highest time Safaricom should go back to drawing board and strategized on the way forward in bid to protect their MPesa brand. For instance they can explore the following. 1 ) In short run they should offer others banks more favourable terms on using MPesa as a means of transfer. 2 ) Of late the business is becoming more volatile so Safaricom should be more creative and innovative by coming with new products to the market. 3 )Based on how things the way they are going they should explore on establishing their own bank in long run.
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Rank: Member Joined: 9/11/2014 Posts: 228 Location: Nairobi
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whiteowl wrote:iris wrote:If a hacker (hired or not) could break into the system, wouldn't that concern you? Why is Safaricom acting like Mpesa hasn't/can't be hacked? Maybe one is like a house owner taking responsibility for his/her own security while the other is like having an upstairs tenant who could turn out to be a crook and attack in the dead of night
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Rank: Elder Joined: 6/17/2008 Posts: 23,365 Location: Nairobi
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Safaricom in addition to fighting with equity will have to move on to other things! MPesa was always going to attract the big money players...the banks! They will certainly move their battle to data front, think FTTB, FTTH...they have already laid their own fiber. I see then also going into cable TV very soon!!!! ..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
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Rank: Veteran Joined: 7/3/2007 Posts: 1,634
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McReggae wrote:Wakanyugi wrote:McReggae wrote:Already there are 3 players with the MVNO license. Any entity with a significant customer base wants a piece of the cake. KQ already working on it, next we could see Nakumatt, EABL, BAT and the likes joining the fray, interesting times ahead. The consumer will be the ultimate winner!!! Famous last words. If only they were true. We said the consumer would benefit when Airtel launched its price war against Safaricom. Instead the price that the consumer has paid is the shrinking of choice (Yu Dead, Orange dying). And now poor reception, dropped calls etc from system degrading and lack of investment in network capacity. Look at the bigger picture, call rates came from an average of 8bob to the current 3bob levels because of the price, the consumer won. Because of Equettes MVNO, already sending money by MPesa for amounts below 2500/- is much cheaper, another win for the consumer! Agreed. But me thinks it my prove to be a Pyrrhic victory for Wanjiku. If Airtel and Orange fold Safaricom will simply jack up the prices. We might end up paying more for a much poorer service. I think I will go say a prayer for Equity/MVNO to succeed and at least tame the green monster. "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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