Kencel,celtel,zain and now airtel started price wars which are now threatening its bussines.it was banking on numbers/volumes which has failed,number portability has also failed,3g internet is unknown...with interconection charges capped at 2.21 airtel is paying rivals dearly despite being in loses..rene mezza quit and has pouched some senior managers to vodacom...airtel has warned its busines is threatened.what options do they have b4 sinking?

I kept pressing on the fact that they will loose on their strategy and cheap is not necessarily good... they fired kenyans, pushed jobs to india, lowered KRA income (which from a different angle impacted the overall economy), affected quality of service and expansion on telcoms among other things.....
Today who is crying? read this extract..... “Stopping drops in mobile termination rates is hurting small businesses more since it is our callers who end up calling more on the market leader than the reverse meaning that we end up paying more,” Airtel’s chief operating officer Shivan Bhargava said in an interview

....and this was obvious from the very onset except to their management!!!

@Qw on trial basis in very few sites...hakuna pesa to buy equipment even the very cheap equipment from china.... plus shamba issues from hurli-- someone might be feeling this was a bad investment

They should sell to people who know how to run telecoms, ..I am thinking MTN here. Unfortunately, their model is structured in such a way that they probably don't own any equipment, land ...generally tangible assets which they can use to negotiate a good bail-out price. They have outsourced everything. Including technical skills. All they have is a middle to high level management staff (Indian), licenses, a name and goodwill that is low in value. Potential suitors, if any, will press them hard

.....now how they have launched a new promo, 100sms for 3bob!!!!

This is another case study for an MBA class on how not to compete with a dominant market player! This along with SAB and Keroche!

@quicksand

This strategy by Airtel allows them to up and sell the business without too many encumbrances. It is a very good strategy for investors that do not want to be bogged down by fixed assets whenever they want to bail out. Like you say, it will be difficult for anyone to replicate this model as it has not worked for anyone who has tried it.

Some people will call it genious that they outsourced everything and will just uproot all their Indian managers and take them back to Airtel India. Look at what Merali does with his companies such that he is able to sell going concerns at whim!

India strategy of minute factory cannot work in Kenya with 40M (fewer if you consider potential subs) people not even Africa where its not a homogeneous market like India. Introduction of 3G will not save their business, the market is not that large outside major cities and towns This company will close shop in not so distant future if they don't sell now or change strategy.

YU will follow suit with free everything.

http://af.reuters.com/ar...s/idAFJOE81G05Y20120217

Look at the magic Rene Mesa has done in Tz....

This is s common problem with MNCs. When they come to Africa they think because we are all black we think the same. Kenya and Tz are neighbors but their business environments are worlds apart. India being a third world and populous cannot be lumped up together with black Africa as having similar climate.
The notion that the CEO has to be Indian with very little experience in Africa apart from the usual stereotypes (construed to be experience) is very bad.
Somebody said its very easy for the poor to adopt new technology because they have no other to compare with. This what helped Safaricom. But once adopted, its very hard to drop. Airtel should have known by now that free calls do not translate into money.
Airtel must go back to the drawing board. Its catch 22, if they raise charges to match Safcom, we'll dump their lines and go back home, Safcom.
Available options; sell to highest bidder to cut losses n go back to India.