jimmy1 wrote:hisah wrote:those that shift to other operators from the green elephant will make the other operators pay more interconnection fees to the elephant since it is cheaper to call from the other operators
correct, however safcom will only get 2.21/per min as interconnection fee, the network charging 3/ for calls to safcom will earn 0.79 cents. This means safcom will be 'losing' 1.79/ because if the call was within the safcom network they woul have earned 4/. If a good number migrate from safcom to other network, calls to safcom may become fewer because the cheaper networks already have incentives for calls within their networks. This may signal the beginning of a club effect
Unless, I am wrong, I believe Interconnection fees are charged once per call. Hence if I make a call lasting for 10 minutes using my Yu or Airtel line to call a safcom number, these Telcos make Kshs 30 from my call and pay Safcom Kshs 2.21 to safcom leaving them with a net of Kshs 27.79.
This is money that would have previously gone to Safcom. As I stand to save Kshs 10 on this call, why should I use Safcom if I have an Airtel/Yu Sim. I will keep my SCOM for MPESA and probably data and migrate all my voice calls elsewhere.