Re: [kictanet] [Skunkworks] When the Internet consumer market bites back...
Personally, I will call it voting with your feet. My 2cents. On 23 March 2010 07:48, Amarjit Labhuram < [email protected]> wrote:
If anybody is interested in the article its available at this link:
http://www.businessdailyafrica.com/Company%20Industry/AccessKenya%20records%...
Aki, I am totally with you. We as consumers do have some control to what decisions are made in the boardrooms of these corporate companies. The future decisions of AK and similar firms towards price wars is inevitable and the old strategy of "double the bandwidth for the same price" shall not go on for too long if the ISP wants to survive our market. That is my opinion and just that!!
Have a great day!
Warm regards, Amarjit Singh Labhuram. ====================== MacroTECH Portal Ltd. -------------------------------------------- P.O. Box: 1501 - 00621, Nairobi, KENYA. -------------------------------------------- Zain: +254-735-528725 Safaricom: +254-721-528725 Fax: +254-773-006734
On Tue, Mar 23, 2010 at 7:31 AM, aki <[email protected]> wrote:
Dear Listers,
Sorry for the cross-posting and am adding my opinion.
There is a story in Business Daily today titled " AccessKenya records 31 p.c. drop in profit " . No matter what way you look at the article, the consumer has spoken.
I believe we are now going to see a turning point for kenya's internet pricing. Competition for higher bandwidths at affordable rates is now starting to kick off. The original idea that was used by ISPs whereby after Seacom and Teams landed was to double bandwidth at existing prices was not a good idea and thus must have lead to depressed sales or no new sales. Lack of sales puts a severe financial stress on ISP companies, especially those who took up both under-sea fiber connectivity.
In my opinion, I think the market has bitten back! Data Telcos and ISPs are now going to have to go head to head on competition for newer customers. I personally welcome back the competition. :-)
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-- James M. Muendo Timsoft Technologies & Solutions Ltd. P.O Box 28016 - 00200, Nairobi. Mobile: +254725567508 skype:tim.rick http://rickdeesadvantage.blogspot.com/
@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 <[email protected]> wrote:
Personally, I will call it voting with your feet.
My 2cents.
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James Muendo