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Safaricon the most EXPENSIVE provider
chris79
#41 Posted : Thursday, August 19, 2010 11:15:23 PM
Rank: Member

Joined: 7/31/2007
Posts: 341
kadonye wrote:
Njunge wrote:
i see groom for safcom

Laughing out loudly

Laughing out loudly
@kadonye, i don't see bride for safcom either Laughing out loudly Laughing out loudly Laughing out loudly
kenmac
#42 Posted : Thursday, August 19, 2010 11:29:36 PM
Rank: Elder

Joined: 5/26/2009
Posts: 1,793
>> as Zain will soon find out, they won't win the market through price competition rather through innovative creativity.



They should learn from how safaricom won the market from Kencell and stop acting like there can be no more innovation in the industry...like safaricom has exhausted innovation avenues.



Finally, If i was a shareholder in Zain, i would sell the shares right away.
......Ecclesiastes
sparkly
#43 Posted : Thursday, August 19, 2010 11:54:50 PM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
A line is 20/- so you just maintain a safcom line where everyone can reach you, and another one to call with depending on the fad of the day. Could be yu, orange, zain. When it's out of fashion just dump and get another 20/- sim
Life is short. Live passionately.
tuvok
#44 Posted : Friday, August 20, 2010 10:05:35 AM
Rank: Member

Joined: 5/2/2007
Posts: 536
tuvok wrote:
tuvok wrote:
maka wrote:
Question still remains is the move by zain sustainable having in mind that inter connectivity rate still remains at 4.22,I think scom should concentrate more on data where they have the upper hand.


2.21 is the new interconnect charge



Just been thinking about it.

e.g at 3 bob a minute across networks, how long do you think the typical phone call now lasts.

2.21 interconnect

Retain 7.79 and of this pay KRA its dues.

It might just be sustaining.




Oops it's 2.21 per minute interconnect..

Their margins per minute are very small.
Wamutonyi
#45 Posted : Friday, August 20, 2010 10:18:06 AM
Rank: New-farer

Joined: 1/4/2010
Posts: 93
@Kenmac;

You still want to pay 8 bob per minute. Kenyans are strange people, they complain services are expensive, when they are given a cheaper alternative, they start analyzing it and lecturing us on the economics of the whole thing. Who cares how they make their money as long as they give us quality services.

We can still develop more products and still pay 3 bob per minute. If we do not support Zain in their new move, we will remain in SafCON caves forever, get out and do something, kwani MPESA is a matter of life and death and even if it was we will die one day anyway. Learn to live one day at a time coz you do not know about tomorrow.
qadaffi
#46 Posted : Friday, August 20, 2010 10:28:10 AM
Rank: Member

Joined: 1/8/2009
Posts: 67
It is likely that even if there was another network charging even higher than Safaricom, it would still have subscribers. Price is a major factor but not the only factor. For a long time, Zain has been cheaper than Safaricom. Heck, I think Yu was even cheaper.
trizher
#47 Posted : Friday, August 20, 2010 10:34:35 AM
Rank: New-farer

Joined: 5/23/2010
Posts: 95
Location: Tikrit - IRAQ
and YU is following suit by midday today . . . . .wah wah lets go the indian way . . . .kalls .@ 2cents a minute. Ni time yetu.
...We do it for the $$$$!!
tuvok
#48 Posted : Friday, August 20, 2010 10:37:57 AM
Rank: Member

Joined: 5/2/2007
Posts: 536
qadaffi wrote:
It is likely that even if there was another network charging even higher than Safaricom, it would still have subscribers. Price is a major factor but not the only factor. For a long time, Zain has been cheaper than Safaricom. Heck, I think Yu was even cheaper.


True, there's several factors, like access to agents, money transfer, data,

But consider the (majority of?) kenyans living on < $1.20 a day. I suppose moving to Zain is not rocket science for them. I'm also not sure that Yu was country wide
MaichBlack
#49 Posted : Friday, August 20, 2010 10:45:23 AM
Rank: Elder

Joined: 7/22/2009
Posts: 7,898
3/= to ANY network. That's 10 nil!!! What YU and Orange had done is keep call charges within the network low but calls to other networks [read Safcom] were still high. When 90%+ of the people you call are on Safcom, such offers did not make much sense. But if now you can all those 90%+ [And all the rest] at 3/=, what other incentive do you need? These is what we call in chess, check [almost check mate!]. Safcom have only one move left. Lower Safcom - Safcom calls to <= 2/=. Otherwise it's game over. Safcom lines will be "receiving" lines. Almost all calls will originate from Zain. And when Zain gets at least 50% market share, they will increase the charges to "other networks" and probably lower Zain - Zain call charges even further. And as they say, "Game short"!. Safcon have a two week period to react. If they don't, it might be the end of Safcon as we know it. You can quote me on this!
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
qadaffi
#50 Posted : Friday, August 20, 2010 10:51:59 AM
Rank: Member

Joined: 1/8/2009
Posts: 67
@tuvok, your point on Yu coverage is in deed valid.
@MaichBlack, your analysis on how the likes of Orange and Yu had kept their on-net calls cheap and how Zain's new approach varies from that is equally valid. True off-net at 3/- is a killer.
Zain has made a first-move and come out looking quite the mindful business that wants to pass off the benefits of lower interconnection to the ordinary mwananchi and this is music to the ears of subscribers.

I wonder what will happen when Orange and Yu have country-wide coverage as well.
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