Let us put some things in perspective. Assumption: banks are not charities. The owners of the banks have to put in 1,000 million shillings as capital to run the bank. They are then encouraged to give loans to our people to enable the economy to grow. Now, if I put in 1 billion shillings in a business, and you want to borrow money from me, it will be at a price,.. and you had better be serious! Dont tell me you want the money for a business that cannot bring back at least 20% returns in profit - you are simply going to rob my cash. The same goes for the internet. If I have spent billions of shillings to lay a cable from here to the middle east, i am going to charge what i can to recover most of my setup costs. Then I will start charging to cover my maintenance & operation costs plus some profit. There are no 2 ways about it,.. again assuming this is not charity. In fact, I am usually a bit miffed when we say this business or that company is fleecing people. Well, if you applied for a job there you would like to be well paid, right? If you supply to the company you would like your invoices to be honoured, right? If you bought shares in the company you would like to have a good dividend, right? -- Davis Waithaka <daviswaithaka@gmail.com> Systems Kenya Solutions On Mon, 2009-08-31 at 05:40 +0300, Gakuru Alex wrote:
banks are charging more because telecoms are stealing their customers thus continually making them irrelevant. M-Pesa - a good example and shifted billions to mobicos proof. Why cheap internet will reverse that is because we shall retain those billions in our wallets - there will less demand to borrow, and we may actually use banks some more, hence their rates may drop and expect new third party payment systems away from telcos-owned. All this hinges on us ensuring that telcos stop exploiting us on communication- a basic human right. So we intensify our fight with telcos, and whatever circumstances have perpetuated the current state of consumer.. i.e. banks are the 'old' problem, our new 'problem' is telcos.. I bet my lunch on that:-)
On Sun, Aug 30, 2009 at 9:51 PM, aki<aki275@googlemail.com> wrote:
On Sun, Aug 30, 2009 at 9:26 PM, Gakuru Alex <alexgakuru.lists@gmail.com> wrote:
Take heart... change is coming:-)
@Alex, self defeating ? Is cheaper internet going to make operational costs cheaper? I don't think so. Internet is a very small corner of expenditure of most businesses. The effects are not going to be felt to except those who are doing large established turnovers. The majority rest will continue to feel the effects of almost fake economies i.e expensive borrowing, lack of loan peformances, a glut in unemployment and its effects, physical security business doing booming business and cost of food, fuel, rent, electricity, transport remains high.The Internet is also not going to change anyones lives in slum or informal settlement areas who will continue crying out for food, basic needs and a better future.
Indeed, banks and other servcie sectors have led the way in conmen schemes out to steal and exploit the country with the BIG green light from governance.
Try borrowing on that 14-17% on loans and see if it makes any business sense to be doing so, unless it can be passed on to end users and higher pricing..... :-)
Rgds.
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