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HOW WILL SAFARICOM COUNTER ZAIN'S CRAZY LOW RATES?
youcan'tstopusnow
#1 Posted : Thursday, August 19, 2010 7:12:00 PM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
Zain have come up with crazy new call and message rates across ALL networks. This will mean reduced revenue for Safaricom as consumers may probably change ship. Safaricom may be forced to lower their own tariffs, ultimately leading to reduced revenues. Plus Zain has promised further cuts if Safaricom makes cuts themselves. Its a lose-lose situation for them. But they are light years ahead in the data market. While others are scrambling for 3G, they are testing their 4G network. But this advantage won't even last 2 years. Also their poor network is doing them a disservice. Safaricom won't be able to ''charge profitably'' anymore. Siku ya kiama imefika. I'm now left thinking that MJ is a genius. He knew to quit at the right time, unlike the other MJ's (Michael Jordan and Michael Jackson). He'll be known as the guy who made Safaricom, while poor Collymore will be known as the guy who lost Safaricom's 80 percent market share. People will be crying for the mzungu to come backsmile www.businessdailyafrica..../-/14xegdmz/-/index.html
GOD BLESS YOUR LIFE
Jaguar
#2 Posted : Thursday, August 19, 2010 7:18:27 PM
Rank: Member

Joined: 6/7/2007
Posts: 263
Location: humu humu
they should start charging those safcon subscribers receiving calls from zain a "receiving fee"
bird_man
#3 Posted : Thursday, August 19, 2010 9:06:10 PM
Rank: Veteran

Joined: 11/2/2006
Posts: 1,206
Location: Nairobi
@Jaguar haha!You are one evil genius!
Formally employed people often live their employers' dream & forget about their own.
Gatheuzi
#4 Posted : Thursday, August 19, 2010 9:17:29 PM
Rank: Veteran

Joined: 8/16/2009
Posts: 994
CCK plans to have interconnection fees eventually dropped. By making this reduction in peacemeal the charge will eventually be zero.
Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
MaichBlack
#5 Posted : Friday, August 20, 2010 11:12:28 AM
Rank: Elder

Joined: 7/22/2009
Posts: 7,898
Jaguar wrote:
they should start charging those safcon subscribers receiving calls from zain a "receiving fee"

You are surely a genius!!! But I don't think CCK would allow this. If it is legal, it would be a stroke of genius. 5/= per minute for every "other network" [Zain] call you receive. Everyone would refuse to pick Zain calls. Or they pick and talk for 2 seconds - "Nipigie na Safaricom" - and they disconnect. LOL. Laughing out loudly Laughing out loudly Laughing out loudly

Nice thinking jaguar. Can we start a business together?
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
kanda
#6 Posted : Friday, August 20, 2010 2:26:28 PM
Rank: Member

Joined: 3/10/2008
Posts: 68
i dont see the genius in that coz everyone would block all calls on the green sim card in favor of the red (or any other color) to avoid such silly charges. the fact is whatever safaricom does, the writing is on the wall...this was the last year for 20b profits and the share will take a serious hit that will be impossible to recover from...wanjiku was duped!
MaichBlack
#7 Posted : Friday, August 20, 2010 5:53:12 PM
Rank: Elder

Joined: 7/22/2009
Posts: 7,898
kanda wrote:
i dont see the genius in that coz everyone would block all calls on the green sim card in favor of the red (or any other color) to avoid such silly charges. the fact is whatever safaricom does, the writing is on the wall...this was the last year for 20b profits and the share will take a serious hit that will be impossible to recover from...wanjiku was duped!

@kanda - You don't seem to get the logic here. Most people migrating to Zain are doing so mainly because they can call Safaricom subscribers at 3/=. Safaricom has 80% market share as it is and as result the average Kenyan's phone book is 80% Safaricom. If you take this advantage away, then you take Zain back to square one!

If you still don't understand, ask yourself this, if the new tariff plan was 3/= on Zain and 8/= to other networks, would there be such a hullabaloo? I don't think so. So companies are charging 0/= per minute within the network from 10am to 5pm [I think] and we are yet to see the exodus.
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
sheep
#8 Posted : Friday, August 20, 2010 8:30:58 PM
Rank: Veteran

Joined: 7/24/2008
Posts: 781
SAFARICOM YOUR LOW RADIATION NETWORKLaughing out loudly
The utimate goal of investing is to buy low sell high;if we re-write this core equation in psychology terms it becomes buy fear sell greed.
Horton
#9 Posted : Friday, August 20, 2010 8:42:43 PM
Rank: Veteran

Joined: 8/30/2007
Posts: 1,558
Location: Nairobi
sheep wrote:
SAFARICOM YOUR LOW RADIATION NETWORKLaughing out loudly

Loool don't forget the low profit network too

Btw, if Scom comes up with a similar deal to yu n zain, the impact will be only on bottom line, which is what matters. Profit should halve( taking into account people will call more coz of lower rates)
kanda
#10 Posted : Friday, August 20, 2010 11:13:50 PM
Rank: Member

Joined: 3/10/2008
Posts: 68
@MB i get the logic alright. you are thinking suffericon before wednesday. i can bet you the average phonebook right now is 50% zain. the exodus started two days ago....you must be writing this from under a rock lol
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