Finally, someone in Government with the nuts to speak out against the whining of safaricon. Heko PM. Back to the drawing board for Shillingi and co. at safaricon

The only question is, if safcom reports the same revenues or more (likely), will airtel continue with the price war or will mwananchi demand lower prices...? In the meantime since the share has been defensive since Sept, such a flat revenue performance or slightly above will see it rallying... Bizarro market....

it seems that safcom has hired mercinaries to do its biding in the house.how do you explain that the mps were quizing Raila based on the same tired arguments that collymore uses. kilonzo,khalwale,mututho and eseli might aswell wear safcom t-shirts to the house. thank God for RAO he stood his ground,as far as outsourcing is concerned the are lucky we cant outsource that parliament to china.looking forward to PM's statement on wednesday.

Populist nonsense!!

SCOM has been "facing the competition" since inception. Has the PM forgotten that SCOM was the third phone company in Kenya?

About paying workers peanuts: has anyone ever heard an SCOM employee complaining?

And on "making billions" would he prefer they made losses? What sort of profit does he think a company with 15 million customers and sh70b in net assets should be making?

The PM should keep his mouth shut on matters he doesn't understand!

For the avoidance of doubt: the opinion expressed above is NOT for the support of government protection of SCOM. It is simply a counter to the PM,s sentiments.

One supplies a more essential product than the other...

Communication is a htman right

Ask yourself this: what would be more catastrophic - all petrol stations running dry or all phone lines going dead?

OK, instead of "petrol station", insert "fuel station" and then answer the question...

A bit tired of the title and simplistic arguments and guesswork about safaricoms revenue, it's so simple, current voice ARPU 362(as per CCK report below) and 16.7 million customers reflects a voice revenue of about 72.5billion assuming no growth since September, but we all know there is growth. You can do the calculations yourself using the historical data on their 2010 full year

http://www.safaricom.co...._report_2010/index.html

For example the average ARPU for 2008 was 616/-, customer base was between opening 6.081mill, closing 10.231. Average base 8.156mill, approximate revenue = ARPU*8.156mill*12= 60billion (ACTUAL FIGURE 61.39Billion) YOU CAN CHECK!!
Do the same for 2007 you will get 48.05billion against the actual 47.77Billion

Safaricom revenues are not dropping and the CEO implied so (wish i can trace the interview) and with the facts below you can calculate for yourself. NOTABLY THE CHANGE IN MINUTES OF USE ON CCK REPORT

Additional Sources:- CCK sector report

(NOTE THIS WAS AT COMMENCEMENT OF PRICE WARS IN SEPTEMBER AFTER WHICH SAFCOM HAS PICKED MOMENTUM)
http://www.cck.go.ke/res...TICS_REPORT_Q1_1011.pdf


HIGHLIGHTS:-

Subscribers
Page 7
Safaricom 16.71million

Voice Traffic
Page. 8

Similarly, the number of voice minutes received on all mobile networks was 6.63 billion
minutes, representing 97.5 per cent increase from the same period of the previous year
i.e Q1 09/10 against Q1 10/11

The industry’s ARPU now stands at Sh362.20 compared to Sh425.85 in 2007 and Sh376.5 in 2008, according to CCK data.
So has revenue declined sharply? They close year in March. The only guys in trouble are kina airtel.