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Bharti Airtel to acquire Zain Africa
TUPAC
#1 Posted : Monday, February 15, 2010 7:20:27 AM
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Joined: 12/8/2009
Posts: 274
Location: Ltktk
What do you guys think of India's largest mobile operator's acquisition of Zain's African operations? Will it have any impact on safaricom?
...things fall apart...the centre cannot hold..mere anarchy is loosed upon the world...w b yeats
the deal
#2 Posted : Monday, February 15, 2010 8:43:48 AM
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Joined: 9/25/2009
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Location: Windhoek/Nairobbery
zain has fallen off...how many owners has zain had in the last 5 years..
Jaguar
#3 Posted : Monday, February 15, 2010 9:03:43 AM
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Location: humu humu
There’s no guarantee the transaction will be completed, according to the statements. France’s Vivendi SA, owner of Maroc Telecom, walked away from buying Zain’s African assets in July, saying the purchase didn’t fit “its usual criteria of profitability and financial discipline.”

http://www.bloomberg.com...085&sid=aOIZq4BcFKLc
2012
#4 Posted : Monday, February 15, 2010 9:12:04 AM
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Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
Is it true that YU has fired the Chief Commercial Officer?
This guy is to YU what TRM was to Nakumatt.

BBI will solve it
:)
Agra
#5 Posted : Monday, February 15, 2010 10:20:45 AM
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Location: Agra, India
Airtel is safaricom to india it has dominated the market in india and has very bright ideas which can unlock the potential of Zain especially in Kenya.
It's easy for investors to get emotional and prejudiced when trading, but computers don't
2012
#6 Posted : Monday, February 15, 2010 11:08:15 AM
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Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
Agra wrote:
Airtel is safaricom to india it has dominated the market in india and has very bright ideas which can unlock the potential of Zain especially in Kenya.


The same thing was said about Celtel. Essar from India has not made a big dent to safaricoms market share so I doubt Airtel will. I only wish Zain was acquired by MTN. MTN has the ability to change the landscape.

BBI will solve it
:)
masukuma
#7 Posted : Tuesday, February 16, 2010 5:09:18 AM
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Joined: 10/4/2006
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Location: Nairobi
the African market is a hard market, the kenyan market is even harder.
All Mushrooms are edible! Some Mushroom are only edible ONCE!
TUPAC
#8 Posted : Tuesday, February 16, 2010 6:31:11 AM
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Location: Ltktk
if this Airtel succeeds and brings the kind of tarrifs they do in India then the competition will go a notch higher.
In India voice calls go for as little as less than one US cent per minute!
imagine that in Kenya; and Safariconman will be done.
...things fall apart...the centre cannot hold..mere anarchy is loosed upon the world...w b yeats
Scubidu
#9 Posted : Tuesday, February 16, 2010 6:56:15 AM
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Joined: 9/4/2009
Posts: 700
Location: Nairobi
@Tupac. You're probably right and most engineers already say that Zain has the more efficient network...but putting MPESA aside...if Safcom spent more money improving its network (and not on other stuff like data), do you think they cud reach a stage where they cud offer customers Ksh1 per minute without the usual congestion?
“We are the middle children of history man, no purpose or place. We have no great war, no great depression. Our great war is a spiritual war, our great depression is our lives!" – Tyler Durden
guru267
#10 Posted : Tuesday, February 16, 2010 7:25:43 AM
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Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
i think bhati is dying to get into africa becuase the amount they are paying for zains african assets is much more than they were willing to pay for MTN... something like 250$ per customer...

they must see real potential in africa... but not so much in kenya
Mark 12:29
Deuteronomy 4:16
TUPAC
#11 Posted : Tuesday, February 16, 2010 8:10:24 AM
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Joined: 12/8/2009
Posts: 274
Location: Ltktk
@guru I think if safcom improved on their network quality and improved on their tarrif; say made it 2bob per min peak and 50 cents per min off peak then i wouldnt need to own 4 simcards like i do. i would simply stick with them and wouldnt need to make cross network calls!
but look at how theyabuse their dorminant position? their internet is the most expensive.
But Us Kenyans are to blame coz we dont run away from safcom to Yu for instance, however much Yu entices us with their crazy bundles!!
...things fall apart...the centre cannot hold..mere anarchy is loosed upon the world...w b yeats
Mkimwa
#12 Posted : Tuesday, February 16, 2010 7:07:22 PM
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Joined: 10/26/2008
Posts: 380
MTN could not have bought out Zain.. They compete in many of the 15 markets that Zain Africa operates in. A merger, maybe, a buy-out - no way.

Don't prepare for low rates. They may happen, but i will be surprised if they go below 6 bob. It has to be commercially viable. They are falking out $10.6bn for operations that are slowly losing cash, the focus will be on profitability.

Last years results from Zain's africas operations declined sharply compared to 2008. download them here - http://www.zain.com/muse...rts/Earning%20Releases.

I think $10.6bn is a huge premium. Add a 4.6bn debt, and u get the picture.

There has been so many top changes in Zain that a change in ownership is imminent.

kyt
#13 Posted : Tuesday, February 16, 2010 7:29:13 PM
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Joined: 11/7/2007
Posts: 2,182
why don't you all guys shift to YU? its A never congested network calls at between 1-3 bob per minute in the network, and 6 bob per minute across the network. why do you guys have to stay with safcom???
LOVE WHAT YOU DO, DO WHAT YOU LOVE.
sparkly
#14 Posted : Tuesday, February 16, 2010 8:06:45 PM
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Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
Kecell/celtel/Zain = poorly marketed, branded superior product. Safaricom = well branded, marketed crap product.
Life is short. Live passionately.
wasee
#15 Posted : Wednesday, February 17, 2010 4:40:41 AM
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Joined: 2/5/2010
Posts: 273
Location: NBI
This indian telco {Yu and 'Airtel'} will definately cause an impact to safaricom's market share. for them its the numbers&not the cost of calling. just check YU's strategy.
TUPAC
#16 Posted : Wednesday, February 17, 2010 5:05:35 AM
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Joined: 12/8/2009
Posts: 274
Location: Ltktk
thats right @ wasee. and those numbers definately means a minus on safaricom's numbers.
...things fall apart...the centre cannot hold..mere anarchy is loosed upon the world...w b yeats
gathinga
#17 Posted : Wednesday, February 17, 2010 9:00:22 AM
Rank: Veteran


Joined: 11/30/2006
Posts: 635
About valuation of mobile phone companies, Sunil Mitall has rubbished the cost per user model, and probably introduced a new benchmark hes calling long term value
http://economictimes.ind.../articleshow/5582167.cms
anasazi
#18 Posted : Wednesday, February 17, 2010 9:32:53 AM
Rank: Veteran


Joined: 6/8/2007
Posts: 675
Am thinking of doing a yu turn. looks like a better deal. naona zain inaweza lala. as for safcom, i maintain it to receive calls, but start using yu to call. thats the plan
Form is temporary, class is permanent
kyt
#19 Posted : Wednesday, February 17, 2010 8:32:29 PM
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Joined: 11/7/2007
Posts: 2,182
@ anzansi, i started doing that in november and no regrets!
LOVE WHAT YOU DO, DO WHAT YOU LOVE.
redondo
#20 Posted : Thursday, February 18, 2010 7:55:54 AM
Rank: Member


Joined: 12/2/2009
Posts: 161
Location: nairobi
The interesting things is that safaricom has always led the way when it comes to innovation and business model. the indian companies also have very interesting business model. they lease equipment and network management allowing them to concentrate on customer care. this also allows them to reduce costs.
Its a well known fact that safricom's market share is bound to shrink(even MJ admitted)but remember that they a dominant player and for as long a they remain innovative the need to engage in a price war is not immediate
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