[kictanet] [ke-internetusers] Zain Kenya makes another move

[Andrea Bohnstedt]

That's really the key issue, isn't it? They won't make money anytime soon -
there's the low rates, but also the fact that they'll have to invest heavily
in network and systems. Easy to moan about Safcom's customers service - but
they manage 16m clients. I'm curious to see if Zain will grow their customer
service at the same speed to accommodate all those new subscribers.

I also suspect that it'll be mostly very very price sensitive people who
will change - again not the clientele that will earn the company much money.


In 2008, when Zain had the Vuka tariff (KES8 on and off net, if I remember
correctly), the company made nearly USD90m losses. Last year, USD46m losses.


I found Mickael Ghossein's statement that 'the market is in a mess' quite
telling. I suspect in this battle of the elephants, Orange and Yu are in
most peril - which could easily contract the market again where subscribers
have less choice.

Full disclosure: I'm a client with both big companies. There's only so much
a girl can put into her handbag.

On 30 August 2010 12:31, Wainaina Mungai <wainaina at madeinkenya.org> wrote:

> This is a very aggressive and most likely, a huge loss-making move in the
> short-run. I hope Zain has a well crafted (*sustainable*) longterm
> strategy.
>
> If they are simply 'playing politics' against a 78% market leader
> (Safaricom), then they will eventually price their way out of the Kenyan
> market.
>
>  Kencell losses *>>>* Celtel losses *>>> *Zain losses *>>> *AirTel losses
> *>>>      oblivion (or market leadership)*
>
> My opinion is not influenced by my 'Safaricom shareholder/MPESA user'
> status ;-)
>
> Wainaina
>
> On Mon, Aug 30, 2010 at 11:43 AM, Alex Gakuru <gakuru at gmail.com> wrote:
>
>> BY MICHAEL KARANJA
>> Updated 13 minutes ago
>>
>> NAIROBI, Kenya, Aug 30 - Mobile telephony operator Zain Kenya has
>> introduced Sh5 and Sh10 denomination airtime vouchers as it steps up
>> its efforts to capture the mass market.
>>
>> The introduction of the new vouchers is seen as a move to make the
>> operator more accessible to the low-end market after a change in
>> strategy following the entry of its new shareholders, Bharti Airtel.
>>
>> Zain Kenya Managing Director Rene Meza said the move is aimed at
>> complementing its recent 50 percent reduction of call charges.
>>
>> “We are offering a wide range of scratch card denominations to suit
>> the needs of all individuals. Access to telecommunication services is
>> no longer a luxury but an integral part of each Kenyan’s
>> socio-economic needs,” Mr Meza said.
>>
>> ....
>>
>> Read more:
>> http://www.capitalfm.co.ke/business/Kenyabusiness/Zain-Kenya-makes-another-move-4606.html#ixzz0y4pjzlUG
>> Under Creative Commons License: Attribution Non-Commercial No Derivatives
>>
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>
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-- 
Andrea Bohnstedt
Publisher
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