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

Mon Aug 30 14:33:09 EAT 2010

I agree with Solomon. When I am buying my groceries, I look for the one who has 
what I can afford. I really do not try and rationalise whether they'll make 
profit or loss.  I will not worry about that. I think the customer here is the 
winner. If Zain (Airtel) makes a loss but the customer gained, that's ok. If 
Safaricom's profits decrease to 15b next year due to this 'mess' but the 
customer gains, that's ok. If Yu and Orange close shop, their customers will 
move to the remaining networks, that's ok. Individual corporate board room 
decisions in reaction to the current and future environment will determine 
whether the operator loses or gains. I see the mobile phone customer at the 
threshold of a new dawn, a new dispensation, where exploitation by the operators 
(to make super profits) will be a thing of the past.

Regards,

Jotham
No disclaimer!

________________________________
From: Solomon Mburu Kamau <solo.mburu at gmail.com>
To: jokilimo at yahoo.com
Cc: ke-users <ke-internetusers at bdix.net>; KICTAnet ICT Policy Discussions 
<kictanet at lists.kictanet.or.ke>
Sent: Mon, August 30, 2010 1:58:05 PM
Subject: Re: [kictanet] [ke-internetusers] Zain Kenya makes another move

I always find ot interesting to see people always giving pessimistic views on an 
investment. I'm not a shareholder of either Safaricom or Zain, but find this 
trend welcome. Zain(Airtel) will make losses in the first round, but then, let's 
wait and see what they want to offer to the Kenyan market, as long as the 
consumer is the winner. 

I don't think the consumer is worried about the losses Zain made, but he/she 
wants to communicate using the most affordable pricing in the market. The rest, 
to him, are just politics of the corporate world. 

Me thinks 

On 30 August 2010 13:37, Sam Gatere <sam.gatere at gmail.com> wrote:

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. 

>
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>Sammy.
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>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
>>Publisher
>>+254 720 960 322 
>>www.ratio-magazine.com 
>>
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-- 
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

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