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qadaffi
#1 Posted : Monday, June 01, 2009 10:43:00 AM
Rank: Member


Joined: 1/8/2009
Posts: 67
Anybody with experience of running this business? I have in mind something like a short code e.g. 6996 from which you have Safaricom/Zain subscribers get tips on stuff like business,dating,parenting,news etc.

Looking to get an idea of possible costs/revenues and margins. So far I know CCK license is like 100K,need a leased line from and special software to connect to the mobile company's SMSC and there is some revenue share with the mobile co (50/50,I guess)...

Pitfalls? Opportunities?
eli
#2 Posted : Tuesday, June 02, 2009 5:07:00 AM
Rank: Member


Joined: 6/17/2008
Posts: 294
Nice biz if you have a many clients to which you want to push/sambaza the news to. I remember Nationmobile used to make 1M per month. That was in 2007,when I used to be there! I don't know how much they make now!

The sms is charged at 10bob! Safaricom takes 8bob,1bob is yours(content provider),1 bob is for the service provider( the owner of the software!). Give it a try!

But you shall remember the LORD your God,for it is He who is giving you power to make wealth,that He may confirm His covenant which He swore to your fathers,as it is this day. Deu 8:18
skjay
#3 Posted : Tuesday, June 02, 2009 6:22:00 AM
Rank: Member


Joined: 4/28/2008
Posts: 36
Last time I checked,the hardware/software costs for setting up were astronomical (like 10M!). But this was for both voice and text. I programmed a bit of this using 4voice,but that was a long time ago,like in 2003. So a lot might have changed.



Consider revenue sharing with companies that have this setup if the costs are still high. Though last I checked,you would get only like 20%! And you got this only after achieving bulk texts coz there's a minimum you needed to make. Safcom/Kencell(or Celtel,can't remember which it was then) would take 60% after taxes! then you'd share the 40% with the dudes owning the technology.
bird_man
#4 Posted : Tuesday, June 02, 2009 7:53:00 AM
Rank: Veteran


Joined: 11/2/2006
Posts: 1,206
Location: Nairobi
@Qadaffi,

Do you intend on becoming a fully fledged PRS company,a go between or consumer of PRS services?I worked for one a while back.A few years ago it was alright but now the competition is heightened with foreign funded companies like M-Tech,Cellulant.....other good ones are Adtel and MobilePlanet.

If u want to become a PRS,you will need good IT expertise and a dedicated team of people working around you.

You need the 100k license from CCK.That allows you to become a liscensed telecoms company.You then need to pay around 75k for the first time liscence to Safaricom and another 75k for a first time Zain license.You will need to have a Short Messaging Server (you can keep it in your office or have it hosted e.g at KDN).The guy i worked for used to host his at KDN at 64k/month.You also need a DEDICATED connection from your office to (i)Your SMS Server (ii)Safaricom (iii)Zain......maybe like another 64k/month.You will then need to MAYBE purchase bulk sms from Saf/Zain at around 0.5sh for huge orders so that you re-sell to your clients.You will then need software to connect to all of them(costs really vary depending on whether you make it or buy it).

Whe you set up the above (and some other things i have forgotten),you then market your services and competition is high.I think its a worthwhile venture.......but for big time players only....so if you are ready,get started and give it ur best.


The course of the world is changed by those who dare dream!
Formally employed people often live their employers' dream & forget about their own.
mtaalam
#5 Posted : Tuesday, June 02, 2009 8:14:00 AM
Rank: Member


Joined: 11/2/2006
Posts: 519
@eli isn't that unfair Safaricom taking 80% and you only get 10%??

The best time to plant a tree is twenty years ago. The second best time is now.
skjay
#6 Posted : Tuesday, June 02, 2009 9:39:00 AM
Rank: Member


Joined: 4/28/2008
Posts: 36
@Mtaalam
I don't think so. These mobile companies have invested billions in their networks and thus call the shots. You should be happy to even get 10%.
bird_man
#7 Posted : Tuesday, June 02, 2009 10:38:00 AM
Rank: Veteran


Joined: 11/2/2006
Posts: 1,206
Location: Nairobi
Unless Nation had a special contract,the revenue share is currently as follows for a 10sh sms.....where volumes are less than 100,000 sms/month.

GOK (via KRA)-2.1sh

Safaricom/Zain-3.95sh

PRS & Client-3.95sh


The course of the world is changed by those who dare dream!
Formally employed people often live their employers' dream & forget about their own.
Speculz
#8 Posted : Tuesday, January 26, 2016 11:31:45 AM
Rank: Member


Joined: 5/6/2011
Posts: 391
Location: Nairobi
Anyone running a PRS company currently ?
"You can't have everything. Where would you put it?" - Stephen Wright
mlefu
#9 Posted : Tuesday, January 26, 2016 1:16:04 PM
Rank: Elder


Joined: 2/11/2007
Posts: 1,680
Location: nairobi
Speculz wrote:
Anyone running a PRS company currently ?



I do, Uko na biashara ?
Speculz
#10 Posted : Tuesday, January 26, 2016 1:21:52 PM
Rank: Member


Joined: 5/6/2011
Posts: 391
Location: Nairobi
mlefu wrote:
Speculz wrote:
Anyone running a PRS company currently ?



I do, Uko na biashara ?


Actually looking for hand holding , any idea where I can get a developer for a simple back-end to link to the Telco system?
"You can't have everything. Where would you put it?" - Stephen Wright
mlefu
#11 Posted : Tuesday, January 26, 2016 3:30:19 PM
Rank: Elder


Joined: 2/11/2007
Posts: 1,680
Location: nairobi
share your contacts.
wazuaguest
#12 Posted : Tuesday, January 26, 2016 8:09:22 PM
Rank: Member


Joined: 2/9/2012
Posts: 576
'hi,ulipata kazi?kama bado hujawahi get job sms GET to 22384 for a chance.I saw they recruit for www.nuvia.refer254.com gudluck&inform other classmates pls'
I received this today,abit of mischief.Kweli pesa zinatafutwa
Africa belongs to Africans.
Speculz
#13 Posted : Tuesday, January 26, 2016 8:55:07 PM
Rank: Member


Joined: 5/6/2011
Posts: 391
Location: Nairobi
mlefu wrote:
share your contacts.


my email is ezzyck(at)gmaildotcom
"You can't have everything. Where would you put it?" - Stephen Wright
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