Mobile price wars; let the market play itself out

The gov't should just let demand, supply, customer satisfaction and goodwill among other factors determine costing Arguments have been put forward to try to justify a foreseen meddling by gov't in the industry; we all know too well that would be for the sole purpose of protecting its interests. ...and I like the satire contained in Saturday's Nation paper (see link below) http://www.nation.co.ke/oped/Opinion/-/440808/1093600/-/nt0f37z/-/index.html My favorite; 'some of the mobile phone operators would close, leading to massive unemployment............. There would be a graduate at every closed shop corner the following evening, waiting to mug you.'

Mugo, This is another good line..."*You would call a mobile phone number, out of nostalgia, hoping for that Maasai glottal, the Luyia accent, the Kalenjin monosyllabic and instead be assaulted by a flat, disembowelled Egyptian or Indian voice because the job has been outsourced......"* On Mon, Jan 24, 2011 at 2:22 PM, m mugo <mugo2of3@gmail.com> wrote:
The gov't should just let demand, supply, customer satisfaction and goodwill among other factors determine costing
Arguments have been put forward to try to justify a foreseen meddling by gov't in the industry; we all know too well that would be for the sole purpose of protecting its interests.
...and I like the satire contained in Saturday's Nation paper (see link below)
http://www.nation.co.ke/oped/Opinion/-/440808/1093600/-/nt0f37z/-/index.html
My favorite; 'some of the mobile phone operators would close, leading to massive unemployment............. There would be a graduate at every closed shop corner the following evening, waiting to mug you.'
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Incidentally, I interviewed Rene Meza yesterday (picture proof http://twitpic.com/3t9trw) for this Thursday's Money Matters and he says the feelanga free tariff ends in March, and they haven't decided whether it will be extended. Only that they haven't shared this info with consumers. Reminds me of something I heard somewhere: 'advertising is deceiving without lying.' Also, about all the complaints of its outsourcing, he just says Airtel is not to blame for 'monopoly and inefficient telecom companies.' Am just gonna go ahead and plug the show by saying it's a very interesting interview and you can watch it this Thursday at 9.50pm on NTV. LARRY On Wed, Jan 26, 2011 at 9:46 AM, Patrick Mburu <pmburuskunkworks@gmail.com>wrote:
Mugo,
This is another good line..."*You would call a mobile phone number, out of nostalgia, hoping for that Maasai glottal, the Luyia accent, the Kalenjin monosyllabic and instead be assaulted by a flat, disembowelled Egyptian or Indian voice because the job has been outsourced......"*
On Mon, Jan 24, 2011 at 2:22 PM, m mugo <mugo2of3@gmail.com> wrote:
The gov't should just let demand, supply, customer satisfaction and goodwill among other factors determine costing
Arguments have been put forward to try to justify a foreseen meddling by gov't in the industry; we all know too well that would be for the sole purpose of protecting its interests.
...and I like the satire contained in Saturday's Nation paper (see link below)
http://www.nation.co.ke/oped/Opinion/-/440808/1093600/-/nt0f37z/-/index.html
My favorite; 'some of the mobile phone operators would close, leading to massive unemployment............. There would be a graduate at every closed shop corner the following evening, waiting to mug you.'
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-- Twitter: @LarryMadowo Facebook.com/LarryMadowo

Larry; I once worked for a prominent call centre on Mombasa Rd and it was just pathetic after 6 months.They never confirm your employment, are rude telling you there are thousands of job seekers out there inching for what you dont want and so on. I had to call in lawyers when my resignation letter wasn't honored. Their pay is pathetic, and after you wail and whine about why you need your terminal dues in the accountants office. Its not just here that things are bad. 90% of all our BPO's and EPZ's are teeming with utterly unhappy Kenyans who have no other person to run to, including Dr. Ndemo. Larry you could send those "Jicho Pevu" guys in your media house (well, I don't know what they are called in NMG) to survey, you'll be shocked! I know Airtel wants us to call at low rates, but again, just like the highway robbers and the police, when do we bargain for good service and low rates? How low are we to call cheaply when your graduate brother/sister/mom/dad/son is paid 15k after two months or more, sometimes going to work on foot several kilometers away on hungry stomach? What is the use for low call rates, when your suppliers are never paid until they lodge an official complain with lawyers and the police? What is the use when the said employer is appointed by the politico to Central Bank as a Director, with his house still smoking inefficiency? What is the use when the cheque once delivered the directors take a holiday abroad while staff go unpaid? Isn't this bad enough for Kenya? Airtel have to understand that in as much as we appreciate their 1 bob call, and the hullabaloo thats outsourcing, its not the panacea to our livelihoods. I still spend over 6k a month on calls, not a big difference (2 k to be precise) on what I used to spend a few months ago. 2k can't even settle my elec bill, 2k disappeared into the maze that is inefficient consumer delivery channels. I still spend several thousands more on my rent, water, food (now that the food shortage has started to bite), fuel, my children's school fees and so on. 2k is a drop in the pacific ocean. Government should come up with better ways of making the life of average Kenyans bearable than strangling the entire industry thats the livelihood of millions of people in the telecommunications supply chain. Im not against low calls in the industry, by the way, coz I can now comfortably call without looking at my account balance. But im not happy because I know down the telco food chain, someone is closing shop and the job loss will translate into a weaker purchasing power for the entire economy if not an extra thug in my neighborhood. If you can't calculate the multiplier effect of such an income change, call me I will demonstrate. Larry, we should not allow one player to play with the economy especially when its starting to show some signs of life. This economy in as much as is being touted as growing at 5%, if you use year 2002 as the base year, we are growing at around 2%, and when inflation is computed with the base as 5 year ago, thats in 2006, then we are having an annual inflation of around 32%. This is the tragedy of Kenya. Kenya is doing really badly on all fronts, its the wrong time to antagonize an entire supply chain at this time. The constitution that we passed requires massive revenues to translate into tangible gains for Kenyans. While, the gains made by Airtel will fly into India, Kenyans will be left with the bowl holding towards China, the IMF and the World Bank. I know that will happens sooner or later. But it will come to pass. Kenyans have to see through the tricks and make wise decisions. At Kes 2, thats the right equilibrium/optimal price, below that and bearing other factors being constant (bad governance, insecurity, bad communication infrastructure etc), the status quo should be maintained. My several cents on Airtel. Peter NB Im done with this discussion. On Wed, Jan 26, 2011 at 10:38 AM, Larry Madowo <larrymads@gmail.com> wrote:
Incidentally,
I interviewed Rene Meza yesterday (picture proof http://twitpic.com/3t9trw) for this Thursday's Money Matters and he says the feelanga free tariff ends in March, and they haven't decided whether it will be extended. Only that they haven't shared this info with consumers. Reminds me of something I heard somewhere: 'advertising is deceiving without lying.'
Also, about all the complaints of its outsourcing, he just says Airtel is not to blame for 'monopoly and inefficient telecom companies.' Am just gonna go ahead and plug the show by saying it's a very interesting interview and you can watch it this Thursday at 9.50pm on NTV.
LARRY

The gova should keep off, let market forces work. And nobody will close shop but super profits will be wipped out which the worst that will happen. There will still be money to be made perhaps shared out more evenly. On Mon, Jan 24, 2011 at 2:22 PM, m mugo <mugo2of3@gmail.com> wrote:
The gov't should just let demand, supply, customer satisfaction and goodwill among other factors determine costing
Arguments have been put forward to try to justify a foreseen meddling by gov't in the industry; we all know too well that would be for the sole purpose of protecting its interests.
...and I like the satire contained in Saturday's Nation paper (see link below)
http://www.nation.co.ke/oped/Opinion/-/440808/1093600/-/nt0f37z/-/index.html
My favorite; 'some of the mobile phone operators would close, leading to massive unemployment............. There would be a graduate at every closed shop corner the following evening, waiting to mug you.'
_______________________________________________ Skunkworks mailing list Skunkworks@lists.my.co.ke http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks ------------ Skunkworks Rules http://my.co.ke/phpbb/viewtopic.php?f=24&t=94 ------------ Other services @ http://my.co.ke

And some of us talking about demand and supply market forces, they only work in perfect markets, not imperfect markets like Kenya. The Kenyan economy doesn't show phenomenon described in economics books, rather, she has to be stimulated. She doesn't even respond to global shocks like other economies. We are still a "manual" economy where everything has to be done by hand - including stimulating the money markets. So the bullshit about market forces is nonsense as this applies only in perfectly competitive markets. Kenya is not one such marketplace. Peter On Wed, Jan 26, 2011 at 11:13 AM, milele forever <milele.forever@gmail.com>wrote:
The gova should keep off, let market forces work. And nobody will close shop but super profits will be wipped out which the worst that will happen. There will still be money to be made perhaps shared out more evenly.

Peter, that's tough one, I should say. The lack of legal mechanisms controlling foreign investors or EPZs and BPO, the more exploitation of the common person will be. The same can be said of the monopolies. If they tend to monopolize everything, then the economy starts crumbling. Perhaps being used to monopolies made us not get prepared for the change of things around. My thinking... On 26/01/2011, Peter Osotsi <peter.osotsi@gmail.com> wrote:
And some of us talking about demand and supply market forces, they only work in perfect markets, not imperfect markets like Kenya.
The Kenyan economy doesn't show phenomenon described in economics books, rather, she has to be stimulated. She doesn't even respond to global shocks like other economies. We are still a "manual" economy where everything has to be done by hand - including stimulating the money markets.
So the bullshit about market forces is nonsense as this applies only in perfectly competitive markets. Kenya is not one such marketplace.
Peter
On Wed, Jan 26, 2011 at 11:13 AM, milele forever <milele.forever@gmail.com>wrote:
The gova should keep off, let market forces work. And nobody will close shop but super profits will be wipped out which the worst that will happen. There will still be money to be made perhaps shared out more evenly.
-- Sent from my mobile device *Solomon Mbũrũ Kamau* ***************************************************** *Man is a gregarious animal and enjoys agreement as cows will graze all the same way to the side of a hill!* AND *It is better to die in dignity than in the ignominy of ambiguous generosity! * http://smiley2.wordpress.com http://mburu.sikika.co.ke

I'm sure safaricom have sent their share of scouts to study the Indian telecom market in the past and it's easy to tell from their response so far, that they know what's coming their way unless they join the bandwagon and offer competitive rates and QoS. Its highly unlikely that they'll cap their operating expenses just to maximize their profits at the risk of losing their customer base, which is after all their stronghold. On 1/24/11, m mugo <mugo2of3@gmail.com> wrote:
The gov't should just let demand, supply, customer satisfaction and goodwill among other factors determine costing
Arguments have been put forward to try to justify a foreseen meddling by gov't in the industry; we all know too well that would be for the sole purpose of protecting its interests.
...and I like the satire contained in Saturday's Nation paper (see link below)
http://www.nation.co.ke/oped/Opinion/-/440808/1093600/-/nt0f37z/-/index.html
My favorite; 'some of the mobile phone operators would close, leading to massive unemployment............. There would be a graduate at every closed shop corner the following evening, waiting to mug you.'
participants (7)
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Larry Madowo
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m mugo
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milele forever
-
Patrick Kariuki
-
Patrick Mburu
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Peter Osotsi
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Solomon Mburu Kamau