[kictanet] Are we letting the PS get away with this too?
Adam Peake
ajp at glocom.ac.jp
Wed Jan 19 17:12:45 EAT 2011
Last year in India I met an IT professor, Ashok Jhunjhunwala.
Professor at IIT Madras. He's on the Board of Tata Communications,
govt advisor, and on and on. Brilliant man, one of the pioneers of
the Indian ICT sector. Couple of lines from my notes summarizing his
comments:
"how can you make money at 1 cent/minute? Indian mobile operators
can: that is the Indian market. And once you can provide services at
1 cent/minute, of course you will go to markets where the cost is 10
cents/minute and kill them. This can be applied to many areas."
He wasn't just talking about India's mobile market, but that was the
example. Indian businesses cut costs to the bone while also
providing quality. It's how they have been so successful. He was
suggesting that if Indian business can transfer these business
practises/models to other markets they'll clean up.
I don't know how India's mobile prices compare KES to rupee, might be
worth someone from CCK or the PS' office taking a look at Indian
mobile market to see what Airtel's and other operators prices and
services are like. My guess is Airtel may be dropping prices to
levels similar to those it offers in India. Perhaps for the moment
they are burning money to pick up subscribers, but in the longer term
they might really know how to offer service at that price and still
make profit.
Adam
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