I've been a long time reader of Skunkworks. First time contributor. What has forced my hand is one Peter Osotsi. Dude, there is no problem being a Safaricom subscriber but what I cannot let stand is the flawed arguments you peddle in this mailing list. Personally, I'm a Safaricom shareholder, I have had a Safaricom line since 2001 and I only started using Zain consistently in the last six months. Despite this I'm not biased like you. I'm now sure you personally benefit from Safaricom's dominance by advocating for continuous exploitation of the poor Kenyan consumers. For the record, Safaricom is mainly Vodafone and that's as Kenyan as Bharti. Remember, Zain, Orange and Yu also employ Kenyans.

I have travelled to India and Europe and in those markets telecoms is an essential economic enabler service and not a money minting affair as Safaricom has made into. I have the same problems with multinationals like Barclays, Stanchart who take advantage of infant laws in third world countries. These companies make higher profit margins in Africa than they do in properly regulated markets like the UK. I can never vouch for Barclays and Stanchart to exploit third world markets in the name of employment. Even Equity and KCB employ Kenyans.

I hope the list members will not take this as a personal attack on my fellow Kenyan Osotsi but just to expose him for what he is: a beneficiary of oligopoly and monopoly of Safaricom. I have no time to search the archives but if any of you has the time do so and you will find out that Mr Peter Osotsi is consistent only in one thing: being an advocate of Safaricom. Even if I was employed by Safaricom, as a professional I wouldn't stoop to such level. For a Kenyan to advocate for exploitation of Kenyan by a telecommunications operator just baffles me. In case guys forget, Safaricom exists to make profits and stay competitive in its industry; not to help Kenyans. Safaricom Foundation, marathon are just other activities and to write here that sporting and medical activities sponsored by Safaricom really beggars belief.

To me Zain, Safaricom, Orange, Yu and any other companies are just that and I'd rather have cheap calls and freedom of communication than "sponsor almost all sporting events, they sponsor medical camps, they sponsor the young techies become guru's". Those are called CSR and have nothing to do with making communication affordable and accessible to the masses.

The argument that did my head in was that Safaricom helps in evacuation and emergency because "the network is accessible even in remotest of places." Oh dear. Well, I've got news for you Peter. I have worked in the telecommunications industry and know for a fact that in most places in northern Kenya, were it not for Telkom Kenya and Zain would be telecomms vacuums because they do not exist in Safaricoms "economically viable areas".

Peter, if you want to stay with Safaricom and pay KES 100 per minute, that's fine but know that most Kenyans cannot afford that and will gladly move to an operator offering free calls if that was possible. By the way, if I were getting a share of such exorbitant charges, I would stay like you.

I rest my case. Judge for yourselves Peter's neutrality by critically analysing his "arguments". Finally brethren, for what I have written, I would gladly accept a ban from the list moderator if it comes out as unwarranted. It would be totally worth it. But this is strictly business; not personal.

I'm happy I got this off my chest.

On 11 September 2010 13:44, Peter Osotsi <peter.osotsi@gmail.com> wrote:
Luke;

Before I became a tech, I was an economist. And from an economist's perspective, what Safcom is making is very little compared to their size and size of our market. When compared to other regional telecommunication providers, Safaricom is making a tidy profit. Its such a small profit, if tech people think its a lot of money, then this country is doomed. We have to think outside of the box - kinda how is Safaricom able to make more money than other players? I want Safaricom to make USD 1 billion, not a paltry USD 300 Million. Its because they have the infrastructure, people and the market to make USD 1 Billion.

Looking around, Safaricom is the most accessible telecoms provider to a majority of Kenyans. That means when a Kenyan is looking for a telecommunications service provider, the nearest shop they will find is a Safaricom outlet. If a Kenyan wants to send or receive money on the mobile, its a Safaricom dealer that will be the nearest. Same for airtime top ups. Safaricom is made up of upto 50% local shareholding. You and me. 

Thats what has made Safaricom a dorminant player. Safaricom invested in all that through bonds on the stock market and private placement loans from abroad. They didn't get loans or concessions from government. Orange Telkom did. Infact GoK has reaped tremendously from Safaricom than from all other private enterprises, do your research. I have never heard other players raising money whether locally or internationally.

Then if Safaricom invests in technology and an Indian comes and wants to make a profit, and we resort to killing an investment just to appease a mpita njia, thats a silly mistake. They need to learn from this unique market, and adopt to it. Kenya will never be India, or South Africa. Ask me how new entrants Groupe Bank of Africa or Ecobank are able to compete silently in the banking sector despite the likes of Equity, Standard Bank, Barclays and Standard Chartered. These two are unique because they are francophone, and from West Africa. And are doing quite well looking at the foothold they are having on their core markets. South African and Indian firms have to learn from West Africans.

Guys lets stop complaining when a small profit is made by a telcoms service provider, we should in fact encourage them to grow bigger by giving them concessions, tax breaks and other business incentives because their contribution to families, KRA (GoK) and CSR is good for the economy.

Peter
0-721-586-109

Don't wait for success; hunt it down like there's no tomorrow.

On Sat, Sep 11, 2010 at 12:55 PM, Luke Kuvheya <tendayi.kuvheya@gmail.com> wrote:
Peter, Honestly, look at safcoms profits, how have they trickled down to their employees? Did they improve customer care? They have good services and for charging wat they charging is day light robbery if u need help and assistance from them they dont pick calls, not network is perfect but if your making killer profits like that , can we be taken care of! we paying for these services, at wateva rate i should get assistance when i need it.

Im not pushing for any player in the industry, but as customers we need service for money payed. If im paying less and the service is crap it wont hurt as much as when im paying for the service with my arms and legs.


My 2 Cents.


Luke



_______________________________________________
Skunkworks mailing list
Skunkworks@lists.my.co.ke
http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks
------------
Skunkworks Server donations spreadsheet
http://spreadsheets.google.com/ccc?key=0AopdHkqSqKL-dHlQVTMxU1VBdU1BSWJxdy1fbjAwOUE&hl=en
------------
Skunkworks Rules
http://my.co.ke/phpbb/viewtopic.php?f=24&t=94
------------
Other services @ http://my.co.ke