Forwarded conversation
Subject: [Skunkworks] Safaricom getting purnished unfairly
------------------------

From: Peter Osotsi <peter.osotsi@gmail.com>
Date: Wed, May 5, 2010 at 2:57 PM
To: skunkworks <skunkworks@lists.my.co.ke>

Safaricom started out as a department at Telkom, naturally when you have your baby, you nurture and grow it until its grown and can not only dress and shower, but can go to school, get an education and look for a good job.

Safaricom should not be blamed for the ills facing the telecommunications sector, Orange and other smaller players were piggy riding on the false promise that government will "cut safaricom to size" in order for them to turn a profit. Telkom has existed for so many years I fail to count, yet Orange keeps making noise. Why cant they leverage on the Telkom brand as Safaricom did and grow?

Blaming Safaricom for their own inefficiencies wont make sense. Safaricom pays the exchequer a lot of money in both direct and indirect taxes, and employs many more people out of their mainstream employees - such as partners and vendors of airtime and mpesa, not roping in the various subscription based business models, not counting even baby sitters. Does Telkom employ even a single babysitter for their employees? How long does one get a response to their problem on a Telkom network? In my area, YU internet runs as GPRS, while Safaricom is past EDGE, way into WCDMA or HSPDA. Pretty fast connection. If YU doesnt upgrade its Internet, why should I be forced to use it? And Orange is not even there. Villifying Safaicom will just add to the specter of failed enterprises and the companies complaining do not have an innovative business model to take care of a competitive business environment.

Much of what Safaricom is using to develop the infrastructure is borrowed money - money that they get from bonds on the free market. I've never heard Zain, YU or Orange getting bonds to the market to raise money to improve their network. Walalahoi. Nkt.

What is Safaricom doing now that they cant do? They waited until Safaricom overly publicized Mpesa for them to develop and market their own, and when that flops, they turn to the government for salvation. That is unfair. Kenyans are not being forced on Safaricom, they choose it because the SIM cards they most likely find in the nearest market is a Safaricom line and Safaricom airtime. Then they know how to choose. If Safaricom gets rewarded for their innovation and aggressive product promotion to turn a profit, so should Orange, YU and Zain. For example, Telkom/Orange keeps copying everything Safaricom does - like promotions. So how does a copy cat survive when they don't know what drives Safaricom to engage in such business practices?

Infantile antics will not bring a proft to these companies. They must innovate, or just like Popote Wireless and Flashcom, they will sink with the hopes of a nation. We must Appreciate innovation and aggressive product tendencies so that like South African companies, we conquer our region. The new form of slavery, just like in the old form, needs some savages, and thats the difference.

Even Access Kenya is going to die because they are not innovative. When the market needed them, they kept on shifting goal posts until Safaricom came and took hold of the market AK could not claim. Now AK has no room for further grown unless they innovate! I think in the not too distant future, the Somen's will see the fruits of innovation or lack of it, just like Popote Wireless, Flashcom, Zain, YU, Orange, UUNET and so on. And the fruits might leave a bitter taste like what YU/Orange/Zain are finding now.

Please government, don't sacrifice innovation over ineptitude. The biggest loser will be the Kenya people you are purporting to be trying to save. The key wasnt monopoly, it was about allowing more players to bring competition into town and to help drive prices down. If the players can't play, they should be replaced with more savvy players who cherish competition. That's how a Kenyan will benefit. Blaming others for your ineptitude is juvenile.

-------

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

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From: Kenneth Muhia <kzmuhia@gmail.com>
Date: Wed, May 5, 2010 at 3:07 PM
To: Skunkworks Mailing List <skunkworks@lists.my.co.ke>

Walala

I have to agree with you on this one.

The subscibers have spoken, let their voice be heard

Regrds
K Z M
---"It's not your blue blood, your pedigree or your college
degree. It's what you do with your life that counts. ---

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Well put.

Thanks,
With Kind Regards
James Wachira
Nairobi .ke
twitter: jwaciira | yahoo: jwaciira | gtalk: jwaciira | skype: jwaciira

Alvin;

Politics doesnt feed me, it keeps me hungry. Politics doesn't turn a profit, an innovative company does. Politics doesn't employ me - they take my taxes and waste it, an innovative company rewards its employees who in turn reward people close to them, including you, the customer - with good/exemplary service.

They should not please a few players that do not know what they need to do in the first place. Please no more politics. Nkt.

Peter

<Quote>

On Wed, May 5, 2010 at 12:04 PM, Mwaura, Chrispin C wrote:

People

The fact is that Safaricom knows that if the interconnectivity charges are lowered or at par with the competition then people will not stay for long with them. FACT – it is expensive calling from SAFCOM TO THE ‘’OTHERS’’ –whereas it is CHEAPER FROM THE ‘’OTHERS’’ TO SAFCOM- WHY – SAFCOM HAVE THE MAJORITY OF MOBILE PHONE OWNERS.

So this is blocking many Kenyans to move to the other mobile phone companies- and Safcom knows about this, otherwise they would not be fighting the new rules. Going to court will not work for them now.

CCK should be supported 100% - most Kenyans have at least two lines- Safcom-Zain, Safcom-YU, Safcom -Orange – reason inter-connectivity charges.

</Quote>

That is what I say is "Very well spoken!"

I carry three lines with me always: Safaricom, Zain and Yu. What always scares me is calling the other networks from Safaricom. Not vice versa. I therefore fully support CCK on this move. Obviously, some of us have their eyes closed. Others have a bias in their thinking, but again we are all entitled to our opinions..Safaricom locks callers to their network. That cannot be disputed, and such are what CCK are out to address.

--
Best regards,
Odhiambo WASHINGTON,
Nairobi,KE
+254733744121/+254722743223
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
"If you have nothing good to say about someone, just shut up!."
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From: Okechukwu <okechukwu@gmail.com>
Date: Wed, May 5, 2010 at 4:02 PM
To: Skunkworks Mailing List <skunkworks@lists.my.co.ke>

All I see here is a personal opinion, and not a direct reference to
the said laws and where the laws are punishing SufferingCon

./Ok3ch

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From: <mikeoketch@aol.com>
Date: Wed, May 5, 2010 at 4:04 PM
To: skunkworks@lists.my.co.ke

Osotsi

You have lots of facts wrong and you know that you cant face the truth on that. I have replied in BOLD!!!

Safaricom never started and has never been a depertment of Safaricom. Safaricom has been a companyof its own only that it was one time a sister company of Telkom Kenya because the Kenyan government owned shares in Safaricom through Telkom Kenya. So Safaricom being a department of Telkom Kenya is just so so wrong.

Listen to me. Do you even know what you are talking about? Noise on Safaricom started coming out in 2005. That was even before inception of Orange Kenya and so your info of Orange kenya is flawed. And the issues which we have had with Safaricom Kenya are regulatory issues. If you scored goals while the match referee was looking away dont say that you are a good footballer.

So if you pay the government money then that gives you the license to do whatever you like? How much does tha bandit economy bring to the country? Why is it hard to argue that then let us allow drug dealers since they will make billions and bring the money to the government? And so you dont know even what Safaricom offers to its employee. Safaricom has never hired any baby sitter for its employees. Let us not display laymanship and ignorance here.

Yu, Zain and Orange cannot provide the superior service because Safaricom is literally and single handedly blocking the payment of the licence. Safaricom rode on Telkom Kenya network for many years and for absolutely no fee. And Safaricom is now saying that for anyone to get licensed, they must pay what Safaricom pay. Safaricom paid 25 Million USD when the market was virgin. Now almost 40% of the data market is being exhausted. Safaricom cannot demand that all pay the 25 Million USD. The market dynamics have changed. Let us grow up and stop all these cheap arguments.

Do you know anything about borrowing from the bourse? DO you know the rules, regulations and processes? You just dont go and borrow. Man do you research. Stop these pedestrian arguments.

As far as I know. Safaricom got it very easy and through patronage and favouritism. Safaricom got lucrative government contracts and mostly were single sourced because the government then and even Kibaki's , before 2007, had very good amount of individual official interests. Dont we know stories of Mobitelea?

Dont we all know what Safaricom did. Did they reward the inventor. Didnt Safaricom go to UK to patent the technology. Have they released the API to developers? NO. Because if they are good at it, the innovators would dicover their lies and they wont survive with the system for even a single day. Safaricom fears regulations and

You can call it whatever you want but you are more of an infant here because none of the arguments you present here measure to technological Maturity. The URL where all the tegulations are is http://www.cck.go.ke/regulations/sector_regulations.html

Read them and stop being reactionary. Quote specific clauses because Safaricom has failed to quote because not works against them. And the regulations talks of the dominant operator. Safaricom and Orange are dominant in Mobile and Data sectors respectively. Why is Safaricom feeling targeted? Because with a level playing field, they wont make it. And for your info, in any market, a company cannot be allowed to control 80% of the market. That is monopoly. That is pure monopoly and CCK suspended regulations for a long time but they must act now

Guys, I expect very strong arguments from skunkers and not these cheap praise singing and then we have people who should know better yelling YEAH YEAH. Did we even go to school?

Just Now Safaricom is facing accusations on bribery and secret and lobbying tactics in the award of tender for the number portability solution provision.

The regulations are here http://www.cck.go.ke/regulations/sector_regulations.html

Let nobody cheat you that CCK is targeting Safaricom. Like we said to Dr Ndemo. We as the young people can innovate with cheap technology but we will resort to Haki Yetu antics if and when some players are allowed unofficial monopoly since we wont ever get cheaper services.

I like the arguments of Odhiambo. Safaricom holds all the high spenders and it is stifling competition

Oketch

Thanks for bringing this out. The regulation will touch on anyone who wants to dominate any sector. It is not targeting a player. Safaricom's argument is this. "We are the only one with over 25% market share hence for now, we are alone in the boiling pot of this regulation". My bad. Yes you are being roasted but it is not personal MJ. And these are rules which should have been introduced loong time ago. The condition in the market now is that Safaricom is a monopoly.

That is making competition and consumer right side issues. We must fight for this and the only way Safaricom will change is when we tell them that no, they must reform.

The market is not level and so others cant compete. Safaricom will even get alot of airtime telling their story but others will be shut out because of the kidn of money which Safaricom spends in the advertisement.

Oketch

Other than the fact that you have put your points in bold they do not invalidate what Osotsi spoke about.

Sufferingcon started of as a department in TKL at least the GSM company it became.

They always paid for their use of TKL resources in form of interconnect.

They borrow from the bourse

They give the govt lotsa legit income

and .................

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From: Eric Mugo <kabugum@gmail.com>
Date: Thu, May 6, 2010 at 10:16 AM
To: Skunkworks Mailing List <skunkworks@lists.my.co.ke>

CCK only regulates the communications sector therefore other sectors will not be affected.... (How comes no one talks about how EABL went about killing Keroche industries.....these regulations cannot even assist Keroche).....The Government messed up from the beginning and let Safaricom become what is it today. To be fair we cannot fully blame Safaricom...Kencell was there as competition and we all know the road they took...therefore Safaricom simply took advantage of the situation and used it efficiently....

If you have read that document, you will realize that becoming a dominant player is almost like a curse...there are so many decisions that are beyond the business itself and have to be approved by an outside entity who will not care much on the effect of the decisions to the business.....these regulations while i would like to believe they are meant for the good of the consumers, they smell of Revenge and maliciousness towards safaricom of which some of us are shareholders.....one thing people need to remember is that it is also the only publicly listed Telco with Mwananchi shareholders....who owns the competitors...some foreigners and a few wealthy individuals

I don't see this tactic working even if they are enforced in the worst case scenario. The reason being Safaricom did not become what it is today purely because of pricing, its mostly because of innovation and the wide range of products the competitors cannot match up...but if it does work, then shareholders may consider
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From: Imelda Mueni <mueni0@gmail.com>
Date: Thu, May 6, 2010 at 10:40 AM
To: Skunkworks Mailing List <skunkworks@lists.my.co.ke>

Hi Peter Osotsi

Did you really read the regulations by CCk , just read it and i think CCk is trying to protect us consumers and unfair dominance in the market , things like tarrifs regulation, the easy of a consumer to move from one provider to another (which safaricom has made it so difficult ) , they can resolve problems btwn consumer n provider and much more ..

am surprised u still call this "unfair" punishment of safaricom ( or the meaning of unfair changed ), its about time they clipped there wings

My thoughts!

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From: Ruth Were <nafuna@gmail.com>
Date: Thu, May 6, 2010 at 10:45 AM
To: Skunkworks Mailing List <skunkworks@lists.my.co.ke>

I feel you sana Imelda, Its time the CCK clipped Safcoms wings... Wametunyanyasa sana
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From: Musya mike <mmycool@gmail.com>
Date: Thu, May 6, 2010 at 10:58 AM
To: Skunkworks Mailing List <skunkworks@lists.my.co.ke>

IMO these regulations sound communistic...There has always been freedom of choice...If u feel umenyanyaswa kuna zain...VUKA...There is YU(cheapest by the way),Orange. The only reason why i stick with safcom is that it gives value for my money. Compare the services...mpesa,bambanet,Ongea...name them vs zap(Availability),yucash(never 'seen' it),cant talk of data services from the other providers.Should one be crucified for innovation? Remember Kencell was once 'the dominant'.
Providing services that resonate with the consumers...You and me.

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From: Ruth Were <nafuna@gmail.com>
Date: Thu, May 6, 2010 at 11:08 AM
To: Skunkworks Mailing List <skunkworks@lists.my.co.ke>

Hands down they are innovative but they also are restrictive. If they didnt have anything to fear, they shud have lowered their rates from one network to another.
Secondly they have the worst customer service in the universe
thirdly, they embark on services that they cannot handle like being an ISP
fourth, they have such high tariffs and poor network ( I mean they still use analog signals)

shud I say more..

What the CCK is doing is good because it is finally doing its job. It will ensure WE the consumers have value for our money. I think its about time they woke up and started working.

Kudos CCK.

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From: Njoroge Tito <titonjoroge@gmail.com>
Date: Thu, May 6, 2010 at 11:15 AM
To: Skunkworks Mailing List <skunkworks@lists.my.co.ke>

@Ruth,

I am interested in that last statement, where do they use analogue signals?

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From: Mark Mwangi <mwangy@gmail.com>
Date: Thu, May 6, 2010 at 11:19 AM
To: Skunkworks Mailing List <skunkworks@lists.my.co.ke>

Remember that choice is an illusion offered by those in power (read
the rich) to make the populace think that they are in control. . .
Telling me to move to another provider yet the dominant player rakes
in billions hence can buy 3G/ 4G licenses and has government support
and clout then you aint convincing me . . True MJ is one heck of a
leader and he has done good for the company but remember when safcom
to other networks was 50/- ? Is that fair? They shud be regulated and
just cause they are innovative and make more sense doesn't mean they
shud be left to do what will rake in maximum profit @ the detriment of
consumer services and freedom . . . .
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Mark Mwangi

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Skype : mark.mwangy

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From: John Ndambuki <johnmndambuki@gmail.com>
Date: Thu, May 6, 2010 at 11:53 AM
To: Skunkworks Mailing List <skunkworks@lists.my.co.ke>

@Ruth: "I mean they still use analog signals?" Please expound...

Kind Regards

John
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From: Gideon Kirui <gideon.kirui@kdn.co.ke>
Date: Thu, May 6, 2010 at 12:04 PM
To: Skunkworks Mailing List <skunkworks@lists.my.co.ke>

@mark here we go again ..another conspiracy theory.
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From: <ashok+skunkworks@parliaments.info>
Date: Thu, May 6, 2010 at 12:12 PM
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From: Joseph Wayodi <jwayodi@gmail.com>
Date: Thu, May 6, 2010 at 1:09 PM
To: Skunkworks Mailing List <skunkworks@lists.my.co.ke>

It's an *illusion* of very tight ass covering. Just in case, ummm ...

LOL

partners, licensors, agents and assigns, in perpetuity, withoutDon't wait for success; hunt it down like there's no tomorrow.

On Thu, May 6, 2010 at 3:01 PM, Okechukwu <okechukwu@gmail.com> wrote:

Half the arguments in this thread are way out of point - No one says the market

Dear Skunks,

Recent developments in the mobile telephony sector are of concern …reminds me of a college adage …hate the game and not the player. I opine that for a true Capitalist society to manifest the market should be subject to forces of demand and supply to create conducive conditions for the market to thrive and in extension to ensure its longevity. However Oligopolistic and monopolistic tendencies in the market ought to be constrained to cushion feeble players and potential new entrants from eventual or outright failure, as such regulation is essential however regulations have to be moderated.

Pius W Walela

Research Programs Adminstrator

Faculty of Information Technology

Strathmore University

Tel : +254 -020- 606155 Ext 2320

Web : www.strathmore.edu/fit

Email : pwalela@strathmore.edu

......................................................................................

"Only the human mind constrains itself" Unquote

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They were slow,entered the lion n now they are crying foul play...Ever wondered how personalized safcom is? Okoa jahazi...name them... I rest my case.

If cck had not slept on their job safaricom would not be what it is now. It has the worst voice services and customer care, and the reason why people dont move from safaricom its cause of the attachment they have to their number no wonder its against number porting since they will lose big.

I think MJ saw that coming no wonder he wants to leave end of the year before it gets tough.

Ugrateful Kenyans. If it was upto celtel, you'd still be on per minute billing paying ksh 40 for a 10s dropped call. Are the regulations good for the consumer...yes! Are they bad for Safaricom Yes! Are they good for Zain,Yu and Orange? For the time being, yes!

Question is, if you were CCK, what would you do?

My take; CCK did what CCK had to do.

On Thu, May 6, 2010 at 8:35 AM, Michael Gichigo <gichigo70@gmail.com> wrote:

Peter,

I feel you, brother. I really liked your contribution and while I can not verify all the details, I feel inclined to comment on the origin of Safaricom. Sample this:

Osotsi : Safaricom started out as a department at Telkom.

Oketch: Safaricom never started and has never been a depertment of Safaricom.

I don't know where my name-sake got this from, but we can not say he is right. I visited Safaricom website and got this:-

"Safaricom, which started as a department of Kenya Posts & Telecommunications Corporation..."

Of course KP&TC is the present-day Telkom.

Mike

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