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. <br>
<br>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. <br><br>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. <br>
<br>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. <br>
<br>Full disclosure: I'm a client with both big companies. There's only so much a girl can put into her handbag. <br><br><div class="gmail_quote">On 30 August 2010 12:31, Wainaina Mungai <span dir="ltr"><<a href="mailto:wainaina@madeinkenya.org">wainaina@madeinkenya.org</a>></span> wrote:<br>
<blockquote class="gmail_quote" style="margin: 0pt 0pt 0pt 0.8ex; border-left: 1px solid rgb(204, 204, 204); padding-left: 1ex;">This is a very aggressive and most likely, a huge loss-making move in the short-run. I hope Zain has a well crafted (<i>sustainable</i>) longterm strategy. <div>
<br></div><div>If they are simply 'playing politics' against a 78% market leader (Safaricom), then they will eventually price their way out of the Kenyan market.</div>
<div><br></div><div> Kencell losses <b>>>></b> Celtel losses <b>>>> </b>Zain losses <b>>>> </b>AirTel losses <b>>>> oblivion (or market leadership)</b><br><div><br></div><div>My opinion is not influenced by my 'Safaricom shareholder/MPESA user' status ;-)</div>
<div><br></div><div>Wainaina<br><br><div class="gmail_quote">On Mon, Aug 30, 2010 at 11:43 AM, Alex Gakuru <span dir="ltr"><<a href="mailto:gakuru@gmail.com" target="_blank">gakuru@gmail.com</a>></span> wrote:<br><blockquote class="gmail_quote" style="margin: 0pt 0pt 0pt 0.8ex; border-left: 1px solid rgb(204, 204, 204); padding-left: 1ex;">
BY MICHAEL KARANJA<br>
Updated 13 minutes ago<br>
<br>
NAIROBI, Kenya, Aug 30 - Mobile telephony operator Zain Kenya has<br>
introduced Sh5 and Sh10 denomination airtime vouchers as it steps up<br>
its efforts to capture the mass market.<br>
<br>
The introduction of the new vouchers is seen as a move to make the<br>
operator more accessible to the low-end market after a change in<br>
strategy following the entry of its new shareholders, Bharti Airtel.<br>
<br>
Zain Kenya Managing Director Rene Meza said the move is aimed at<br>
complementing its recent 50 percent reduction of call charges.<br>
<br>
“We are offering a wide range of scratch card denominations to suit<br>
the needs of all individuals. Access to telecommunication services is<br>
no longer a luxury but an integral part of each Kenyan’s<br>
socio-economic needs,” Mr Meza said.<br>
<br>
....<br>
<br>
Read more: <a href="http://www.capitalfm.co.ke/business/Kenyabusiness/Zain-Kenya-makes-another-move-4606.html#ixzz0y4pjzlUG" target="_blank">http://www.capitalfm.co.ke/business/Kenyabusiness/Zain-Kenya-makes-another-move-4606.html#ixzz0y4pjzlUG</a><br>
Under Creative Commons License: Attribution Non-Commercial No Derivatives<br>
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