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SAFARICOM SAYS TO RAISE CALLING RATES BY 1 SHILLING ACROSS TARIFFS ON WEAK SHILLING,
Rank: Elder Joined: 9/12/2006 Posts: 1,554
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Quoted from the standard newspaper 01-Oct-2011
""Safaricom will be very sensitive to the tough times facing customers when increasing tariffs, but the business must be sustainable," the firm’s Chief Executive Officer Bob Collymore said in a press briefing Friday.
"The nature of our business is that most of our purchases are in foreign currencies."
Safaricom is the largest mobile phone services operator by subscriber base. Collymore said inflation and a weak shilling, as well as the high cost of diesel used in generators to run base stations that are away from the main electricity grid, were some of the factors that had raised the company’s operating expenditure.
"This is perhaps one of the most difficult decisions that my management team and I have had to make," he said"
...........Are these factors not facing the other players? or one just wants to flex for the sake of it....
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Rank: Elder Joined: 9/12/2006 Posts: 1,554
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Quoted from the standard newspaper 01-Oct-2011
"Essar Telecom’s yu converted its free-all-day promotion into a permanent tariff earlier this week. The tariff allows subscribers to pay Sh2 to make free calls between 6am and 6pm.
Yu said its decision to settle for a permanent tariff was informed by its need to grow its customer base. The operator is targeting the youth and lower segment of the market, who have a preference for lower calling rates."
Really?..... (and for the last one year these youth have never hooked up for free, come-on!!! isnt the population tilted towards the youth in majority?) ......thats the reason they are not increasing their call rates! Maybe we should check out CCK rules on falling numbers and risk of loosing license then we shall understand the freebies..... someone is hanging in there till a better offer comes..... no expansion, no promotion, no.......
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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hisah wrote:Anybody see this math - those that shift to other operators from the green elephant will make the other operators pay more interconnection fees to the elephant since it is cheaper to call from the other operators... Unless elephant loses a huge chunk of its subscribers (say 40%), the tariff hike is a master act! Talk of shifting your costs to your competitor... Looks like MNP was a huge puff. Kenyans still retain two or more Sims, with majority of calls terminating in Mpesa. Queer habits... Life is short. Live passionately.
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Rank: Veteran Joined: 12/3/2010 Posts: 1,141 Location: Londokwe
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i have just reactivated my dormant zain oops airtel line.33.3% is too much to bear.I have not made any call with safaricom since the new rate. 2012 is here.Kenya is Ours.Be Part of The Peace Keeping Mission To Protect Our Motherland.Say No To Violence and Tribal Hatred .If you can read this,wewe ni mtu amesoma, usifikirie kama mtu hajaenda shule .Ni Hayo Tu
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Rank: Member Joined: 2/11/2011 Posts: 240 Location: jamuhuri ya kenya
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hisah wrote:those that shift to other operators from the green elephant will make the other operators pay more interconnection fees to the elephant since it is cheaper to call from the other operators correct, however safcom will only get 2.21/per min as interconnection fee, the network charging 3/ for calls to safcom will earn 0.79 cents. This means safcom will be 'losing' 1.79/ because if the call was within the safcom network they woul have earned 4/. If a good number migrate from safcom to other network, calls to safcom may become fewer because the cheaper networks already have incentives for calls within their networks. This may signal the beginning of a club effect
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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@hisah. I remember Baks stopped further reduction in interconnect charges. With increase in calling rates the only reasonable thing is to maintain status quo (interconnect rates). I have ordered SCON shares @2.90 and I will accumulate but I'll continue using more of my AirTEL line as usual. The opposite of courage is not cowardice, it's conformity.
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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jimmy1 wrote:hisah wrote:those that shift to other operators from the green elephant will make the other operators pay more interconnection fees to the elephant since it is cheaper to call from the other operators correct, however safcom will only get 2.21/per min as interconnection fee, the network charging 3/ for calls to safcom will earn 0.79 cents. This means safcom will be 'losing' 1.79/ because if the call was within the safcom network they woul have earned 4/. If a good number migrate from safcom to other network, calls to safcom may become fewer because the cheaper networks already have incentives for calls within their networks. This may signal the beginning of a club effect This is why i stated the elephant trick will be at stake if more than 40% users shifted. But with the mpesa club effect, those 40% lines would still be active. And how much do you pay for each P2P money transfer... How much money did mpesa move as a % of the GDP... This elephant is morphing into a bank, not a telco!$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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sparkly wrote:hisah wrote:Anybody see this math - those that shift to other operators from the green elephant will make the other operators pay more interconnection fees to the elephant since it is cheaper to call from the other operators... Unless elephant loses a huge chunk of its subscribers (say 40%), the tariff hike is a master act! Talk of shifting your costs to your competitor... Looks like MNP was a huge puff. Kenyans still retain two or more Sims, with majority of calls terminating in Mpesa. Queer habits... MNP has been a DOA (dead on arrival) concept globally. Who is running the MNP in KE? Then research further to follow the money...
http://www.telecomasia.net/content/mnp-flop-china
http://www.mnp-india.com...i/62-mnp-flops-in-india
http://mybroadband.co.za/nephp/5182.html
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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jerry wrote:@hisah. I remember Baks stopped further reduction in interconnect charges. With increase in calling rates the only reasonable thing is to maintain status quo (interconnect rates). I have ordered SCON shares @2.90 and I will accumulate but I'll continue using more of my AirTEL line as usual. You are not a loyal shareholder  Imagine if stocks were political parties, wewe kwisha...
I think there is scope to test 2.50/- But if this thing can hit 2, I'll be very glad to mop up. $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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I doubt this will affect safcoms revenue negatively. Very few will dump their safcom lines. Saf marketing is the best in the industry. Yu and orange do not market aggressively.
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Rank: Elder Joined: 10/14/2009 Posts: 2,057
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Airtel and Orange about to raise tariffs.... Wahindi wali tu enjoy ! If you are an eagle don't hang around with chickens; chickens don't fly....
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Rank: Chief Joined: 1/3/2007 Posts: 18,134 Location: Nairobi
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If Airtel attracts enough voice subscribers then it will have its own Club Effect... Safaricom will make more from its voice subscribers but lose voice subscribers to Airtel... BTW, Orange has an offer for 200 on-net minutes per day for 20/- Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 7/15/2009 Posts: 16
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vinii wrote:Airtel and Orange about to raise tariffs.... Wahindi wali tu enjoy ! Airtel Kenya has announced that it will not increase calling rates, even as the current economic situation threatens to push up operation costs. This is not good news for Mpesa http://www.nation.co.ke/.../-/rtlfesz/-/index.html
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Rank: Member Joined: 8/4/2008 Posts: 205 Location: Nairobi
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CCK report shows interesting trends this year...Safcom and Orange gain subscribers while Zain loses, check it out below: CCK Report"When the pupil is ready to learn, a teacher will appear." -- Zen proverb
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Rank: Elder Joined: 10/9/2008 Posts: 5,389
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And there's a time we used to pay 32 bob within safcom and 50 bob to call kencell. Times have really changed.
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Rank: Elder Joined: 6/17/2008 Posts: 23,365 Location: Nairobi
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jaggernaut wrote:And there's a time we used to pay 32 bob within safcom and 50 bob to call kencell. Times have really changed. Those times were crazy man, infact it was actually 33/= and 52/= ..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
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Rank: Member Joined: 4/17/2009 Posts: 194
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hisah wrote:Anybody see this math - those that shift to other operators from the green elephant will make the other operators pay more interconnection fees to the elephant since it is cheaper to call from the other operators... Unless elephant loses a huge chunk of its subscribers (say 40%), the tariff hike is a master act! Talk of shifting your costs to your competitor... This is not quite correct.
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Rank: Member Joined: 4/17/2009 Posts: 194
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jimmy1 wrote:hisah wrote:those that shift to other operators from the green elephant will make the other operators pay more interconnection fees to the elephant since it is cheaper to call from the other operators correct, however safcom will only get 2.21/per min as interconnection fee, the network charging 3/ for calls to safcom will earn 0.79 cents. This means safcom will be 'losing' 1.79/ because if the call was within the safcom network they woul have earned 4/. If a good number migrate from safcom to other network, calls to safcom may become fewer because the cheaper networks already have incentives for calls within their networks. This may signal the beginning of a club effect Unless, I am wrong, I believe Interconnection fees are charged once per call. Hence if I make a call lasting for 10 minutes using my Yu or Airtel line to call a safcom number, these Telcos make Kshs 30 from my call and pay Safcom Kshs 2.21 to safcom leaving them with a net of Kshs 27.79. This is money that would have previously gone to Safcom. As I stand to save Kshs 10 on this call, why should I use Safcom if I have an Airtel/Yu Sim. I will keep my SCOM for MPESA and probably data and migrate all my voice calls elsewhere.
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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McReggae wrote:jaggernaut wrote:And there's a time we used to pay 32 bob within safcom and 50 bob to call kencell. Times have really changed. Those times were crazy man, infact it was actually 33/= and 52/= I mbought my initial Kencel SIM at KES 1,999, while my college roomate mbot a Safcon line at KES. 2,500; back in 2003/4! Things change.  Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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Impunity wrote:I mbought my initial Kencel SIM at KES 1,999, while my college roomate mbot a Safcon line at KES. 2,500; back in 2003/4! Things change. I bought my line around the same time. To the best of my recollection, it wasn't that expensive. But the cheapest credo was 250
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SAFARICOM SAYS TO RAISE CALLING RATES BY 1 SHILLING ACROSS TARIFFS ON WEAK SHILLING,
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