Competition has very little to do with this "drop".... Turnover increased to 2B from 1.5B...WiMAX revenue is impressive considering the huge investment made for its rollout...The CAPEX made on the fiber rollout was huge...In 2010 financial year, AK will definitely have an edge over its rivals...Wait and see... ./bernard On Tue, Mar 23, 2010 at 9:57 AM, aki <aki275@googlemail.com> wrote:
@James, just adding my amatuer view. I think the story is the first significant admission of losses of a somewhat bad business models. Because AK is listed and we now know the drop in profits could also mean that those Telcos/ISPs whose records are not openly available and followed the models as AK will have similar losses. AK is a strong player in the market, just like others. Just to make a point, you can read the amount of investments going into the local core national networks. There's a lot of movement going on in investments on long term. And then you see names like AK, UUNet and others missing from the core building networks. I think Safaricom is leading, then KDN, Wananchi and JTL. With the common platform license regimes, none of the ISPs are blocked from participating. If AK took a drop of 30%, where would others be? I think the time is near for further price drops with better bandwidth rates. Interestingly, Eassy will have its own impact soon. Either way, they learn from mistakes and turn things around or wait and let next year's profits drop more. The customer base has to grow and rapidly due to all the investments that took place. Rgds. :-) On Tue, Mar 23, 2010 at 9:37 AM, James Muendo <timrick@gmail.com> wrote:
Personally, I will call it voting with your feet.
My 2cents.
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