[kictanet] CCK delays call rate cuts ‘to avoid clash with Kibaki’

[Ali Hussein]

Grace

Is there a way we can get a copy of this interim report?

I still contend though that when a business model needs to be repaired the last place one needs to g is to the regulator to resolve the issue. Consumers have long voted with their wallets and it doesn't matter what the government does, they will still do what's best for them.

I humbly submit that the telco/ISP space is now deep into the vagaries of the Network effect and  no amount of intervention from the regulator will solve this issue. 

http://en.wikipedia.org/wiki/Network_effect

Unless I'm mistaken these MTRs only involve call termination rates right? Telcos will do well to stop beating a dead horse and move on to the automotive (read data and value added services). There's a reason why we all (or the majority of us at least) stay with Safaricom. 

I suspect though that this fight for the cash cow of voice will continue...


Ali Hussein

+254 773/713 601113

Sent from my iPad

On Sep 30, 2012, at 11:42 PM, Grace Githaiga <ggithaiga at hotmail.com> wrote:

> IN SUMMARY
> The research firm’s draft report seen by the Business Daily indicated that lower tariffs have had a positive effect on revenues of the four telecom operators, their traffic, subscriber numbers as well as mobile penetration.
> The downward review in of MTR 2010 from Sh4.42 to Sh2.21 gave the operators room to cut tariffs by more than half, but the telcos have ruled out lower call rates should the rate fall further and will instead absorb the cost savings to boost earnings that had been hit by price wars.
> 
> http://www.businessdailyafrica.com/Corporate+News/CCK+delays+call+rate+cuts+to+avoid+clash+with+Kibaki/-/539550/1521516/-/i1273/-/index.html
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