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

[Sam Gatere]

Moaning about safaricom could be one of the strategies employed here... but
we have to give a little grace to the dominant player where dealing with 15
million plus clients is no easy task! However it would also be important to
look at the difference in mind set between Western Investors and those from
the East. The former (West) have no problems making 10 bob profit per call
while their counterparts seem not to mind making 50 cents! We also need to
look at this whole price war from a birds eye view before narrowing down to
Kenya. Airtel has 15 networks across the continent while Safaricom is only
in Kenya. Should Airtel make Nairobi their Africa hub (of which I think it
is) they will definitely up their game in by investing more to make their HQ
a profitable one. Possibly We will see this war move on to the Data arena in
not to long.

Sammy.



On Mon, Aug 30, 2010 at 12:50 PM, Andrea Bohnstedt <
andrea.bohnstedt at ratio-magazine.com> wrote:

> 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
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