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ZAIN tariff: Call at Ksh 3 per min to any network in Kenya
Rank: Elder Joined: 10/1/2009 Posts: 2,436
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folks, you can make a song and dance about this move...but I wil quickly proceed to be your killjoy. Me looked at it critically n been disappointed by the short-sightedness of zain's move:
- Because its not sustainable in the long run.
- Because its not a show stopper, juu safCON data, MPESA & other product revenue streams still remain among its highest income pillars, and will stabilize any income leakage/mkt share loss in the LR,
- Because its not revenue-driven, rather driven by need to grow its critical mass of subscribers abt < 1m) to tens of millions within a short time - at whatever and at all costs! Setting the stage for a classic pyrrhic (& short term) victory!
Give it < 3months and it will be discontinued faster that VUKA was.
Plus of course I bet safCON has good intell. and knew about all this zamani, and has been well-prepared for it. They always have done so! If I was M. Jose, I would tell my staff to stay pretty and bet on how fast the zain low offer cookie would crumble given:
- zain pays an interconnect charge of 4.80 to meaning that for EVERY call a zain subscriber makes, they have to pay 1.80. Their red ink has already started pouring - do the maths on the red ink they will incur in the next 1 week (the interconnect charges fall to 2.50 come 1st sep 10 when they get start earning 50 cents),
- they have to now pay 1.20 sms - so here they have to fork out 20/100 for each sms.
(The red ink is now becoming a deluge...)
- even if they were to take some MPESA subscribers,where is the country-wide zain network to sustain & rival MPESA's in order to lock-in the new customers? Zilch!
- shags, where a good number of safCON subscribers are based don't care and wont know dat zain has reduced charges - btw, who did u say zain is? Ile Kampuni ya muhindi?they'l ask
- kenyan mobile subscribers are not price sensitive, you can change the price till cows come home but i wont move, not interested in telling all those in my address book that I have changed numbers. Will wait for no. portability instead
- safCON has the wherewithal, capacity and long term endurance to go even lower to absorb any tit-for-tat downward rep-ricing if it wants to joint the low rates dance. Just like Proctor & Gamble did in its price/advertising slugfests with Unilever in the 90s. Any mkt share safCON losses will be recovered in LR. Xpecting zain to match this ability is like the sound of one hand clapping....
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Rank: Veteran Joined: 4/16/2010 Posts: 906 Location: Nairobi
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THANK GOD FOR THIS. Kenyans, please break away from your baseless herd mentality and cross the floor. Safaricom will most likely not react, as they are not even content with their market dominance, they are now obsessed with maintaining their "erection graph" of profits.
When Safaricom announced their billion dollar revenue for their last financial year, ever since then there has been a torrent of praise for Micheal Joseph. How blind Kenyans were. We should NEVER have accepted a billion dollar company to exist in a third world country whose GDP is less than 20 billion dollars! I see hope now as Kenyan consumers are acting logically and speaking the only language Safaricom understands: money.
My good sources in the tech industry tell me that this is only the tip of the iceberg. I believe the long-awaited days of cheap unlimited offers will soon be upon us.
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Rank: Veteran Joined: 7/8/2008 Posts: 947
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KenyanLyrics wrote: Kenyans, please break away from your baseless herd mentality and cross the floor. Baseless?? Are the added values baseless? Is Mpesa baseless? what about unlimited internet for 8 bob? Are all those services baseless! KenyanLyrics wrote:
We should NEVER have accepted a billion dollar company to exist in a third world country whose GDP is less than 20 billion dollars!
Are you sure about our GDP?? KenyanLyrics wrote:
My good sources in the tech industry tell me that this is only the tip of the iceberg. I believe the long-awaited days of cheap unlimited offers will soon be upon us.
------respectfully moderated; deemed insulting-----
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Rank: Member Joined: 6/7/2007 Posts: 263 Location: humu humu
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YU seem to have lowered call charges to 4/ per min to all networks, 3/ for sms to other networks & 0.50 cents for yu to yu sms's
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Rank: Elder Joined: 9/12/2006 Posts: 1,554
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Jaguar wrote:YU seem to have lowered call charges to 4/ per min to all networks, 3/ for sms to other networks & 0.50 cents for yu to yu sms's And according to the CCK revised interconnect charges and rules TKL and safcom must also lower thiers
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Rank: Elder Joined: 10/23/2009 Posts: 2,375
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Intelligentsia wrote:folks, you can make a song and dance about this move...but I wil quickly proceed to be your killjoy. Me looked at it critically n been disappointed by the short-sightedness of zain's move:
- Because its not sustainable in the long run.
- Because its not a show stopper, juu safCON data, MPESA & other product revenue streams still remain among its highest income pillars, and will stabilize any income leakage/mkt share loss in the LR,
- Because its not revenue-driven, rather driven by need to grow its critical mass of subscribers abt < 1m) to tens of millions within a short time - at whatever and at all costs! Setting the stage for a classic pyrrhic (& short term) victory!
Give it < 3months and it will be discontinued faster that VUKA was.
Plus of course I bet safCON has good intell. and knew about all this zamani, and has been well-prepared for it. They always have done so! If I was M. Jose, I would tell my staff to stay pretty and bet on how fast the zain low offer cookie would crumble given:
- zain pays an interconnect charge of 4.80 to meaning that for EVERY call a zain subscriber makes, they have to pay 1.80. Their red ink has already started pouring - do the maths on the red ink they will incur in the next 1 week (the interconnect charges fall to 2.50 come 1st sep 10 when they get start earning 50 cents),
- they have to now pay 1.20 sms - so here they have to fork out 20/100 for each sms.
(The red ink is now becoming a deluge...)
- even if they were to take some MPESA subscribers,where is the country-wide zain network to sustain & rival MPESA's in order to lock-in the new customers? Zilch!
- shags, where a good number of safCON subscribers are based don't care and wont know dat zain has reduced charges - btw, who did u say zain is? Ile Kampuni ya muhindi?they'l ask
- kenyan mobile subscribers are not price sensitive, you can change the price till cows come home but i wont move, not interested in telling all those in my address book that I have changed numbers. Will wait for no. portability instead
- safCON has the wherewithal, capacity and long term endurance to go even lower to absorb any tit-for-tat downward rep-ricing if it wants to joint the low rates dance. Just like Proctor & Gamble did in its price/advertising slugfests with Unilever in the 90s. Any mkt share safCON losses will be recovered in LR. Xpecting zain to match this ability is like the sound of one hand clapping....
Like has been said again and again. Don't care will enjoy it while it lasts It is better to keep your mouth closed and let people think you are a fool than to open it and remove all doubt...
-Mark Twain
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Rank: Member Joined: 7/6/2010 Posts: 170 Location: Kenya Tukufu
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bkismat wrote:Intelligentsia wrote:folks, you can make a song and dance about this move...but I wil quickly proceed to be your killjoy. Me looked at it critically n been disappointed by the short-sightedness of zain's move:
- Because its not sustainable in the long run.
- Because its not a show stopper, juu safCON data, MPESA & other product revenue streams still remain among its highest income pillars, and will stabilize any income leakage/mkt share loss in the LR,
- Because its not revenue-driven, rather driven by need to grow its critical mass of subscribers abt < 1m) to tens of millions within a short time - at whatever and at all costs! Setting the stage for a classic pyrrhic (& short term) victory!
Give it < 3months and it will be discontinued faster that VUKA was.
Plus of course I bet safCON has good intell. and knew about all this zamani, and has been well-prepared for it. They always have done so! If I was M. Jose, I would tell my staff to stay pretty and bet on how fast the zain low offer cookie would crumble given:
- zain pays an interconnect charge of 4.80 to meaning that for EVERY call a zain subscriber makes, they have to pay 1.80. Their red ink has already started pouring - do the maths on the red ink they will incur in the next 1 week (the interconnect charges fall to 2.50 come 1st sep 10 when they get start earning 50 cents),
- they have to now pay 1.20 sms - so here they have to fork out 20/100 for each sms.
(The red ink is now becoming a deluge...)
- even if they were to take some MPESA subscribers,where is the country-wide zain network to sustain & rival MPESA's in order to lock-in the new customers? Zilch!
- shags, where a good number of safCON subscribers are based don't care and wont know dat zain has reduced charges - btw, who did u say zain is? Ile Kampuni ya muhindi?they'l ask
- kenyan mobile subscribers are not price sensitive, you can change the price till cows come home but i wont move, not interested in telling all those in my address book that I have changed numbers. Will wait for no. portability instead
- safCON has the wherewithal, capacity and long term endurance to go even lower to absorb any tit-for-tat downward rep-ricing if it wants to joint the low rates dance. Just like Proctor & Gamble did in its price/advertising slugfests with Unilever in the 90s. Any mkt share safCON losses will be recovered in LR. Xpecting zain to match this ability is like the sound of one hand clapping....
Like has been said again and again. Don't care will enjoy it while it lasts Interconnect charges have been revised to 2.1 for calls and 0.9 for sms....Check todays papers Hardwork, Smartness & Humility = Successful and Happy life...Jipange sasa hivi
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Rank: New-farer Joined: 1/4/2010 Posts: 93
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@Intelligentsia
Stop being in denial, it is just a matter of time and Zain will catch up. Who said we cannot be charged 3 bob while the company is making profits, that is gospel according to saint Intelligentsia.
Those shags pple you are talking about are already on the move and Safaricom can only ignore this at their own peril. When you are a monopoly, you become arrogant and SafCON has just been as arrogant. Do not be a slave of MPESA coz MPESA is not everything and even without it life will still continue and more products will be developed.
Zain has just thrown the first punch at this GOLIATH, we must support them if this monopolistic behaviour has to end. As for me and my clan we moved on day one. I respect your opinion though coz U are entitled to one.
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Rank: Elder Joined: 11/19/2008 Posts: 1,267
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Safaricom to safaricom at 9.34 a.m 20.aug 2010 supa ongea 7bob Zain to safaricom 3 bob..... Hapo Safaricom wamewezwa....No more harvesting from perculiar habits....and ignorance I beg to Move .....Zain/bharti is the way ......I will enjoy while it last....nobody can convince me otherwise.....its my hard earned cash..... Where is my purse....there was a dormant zain line ...I'm rushing to the nearby Kiosk.....for airtime.... Isaiah 65:17-Look! I am creating new heavens and a new earth, and no one will even think about the old ones anymore
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Rank: Elder Joined: 10/13/2009 Posts: 1,950 Location: in kenya
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I heard that the SMS interconnect charges is 0.01 shs.I think they are making a killing on this front. '......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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