One of my favourite business books "An Innovator's Solution" says that the key to successful products is to find out what job consumers are trying to get done, and develop a product that gets that job done. Hate them or love them, thats what M-PESA did, and what Sokotele failed to do, and now they will be punished for it.
I believe Sokoteles biggest mistake was tying-in the service to K-Rep (although I hear that this was because the service was actually a K-Rep idea!), and making the service simply about money transfer instead of the more job-I'm-trying-to-get-done 'liquid money storage' service that M-PESA is.
Oh well, lets see if a rejuvenated Telkom can create some waves with their own moribund money-transfer service (any body know what its called) under an Orange brand.