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AIRTEL-uncertain future.
chris79
#1 Posted : Wednesday, February 01, 2012 12:15:11 AM
Rank: Member

Joined: 7/31/2007
Posts: 341
And it doesn't seem like cooling off any time soon. Moral of the story, never compete with an elephant in a sh*tting contest...

www.businessdailyafrica....28/-/6bek0e/-/index.html
mlennyma
#2 Posted : Wednesday, February 01, 2012 9:42:49 AM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
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?
"Don't let the fear of losing be greater than the excitement of winning."
hisah
#3 Posted : Wednesday, February 01, 2012 9:56:28 AM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
Hike tariff or sell to the highest bidder.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
Jamani
#4 Posted : Wednesday, February 01, 2012 10:11:46 AM
Rank: Elder

Joined: 9/12/2006
Posts: 1,554
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
josiah33
#5 Posted : Wednesday, February 01, 2012 10:23:45 AM
Rank: Elder

Joined: 1/27/2011
Posts: 1,777
Seems like their LOW PRICE-MASS TRAFFIC STRATEGY they've used in India couldn't be replicated here in Kenya.
McReggae
#6 Posted : Wednesday, February 01, 2012 10:30:59 AM
Rank: Elder

Joined: 6/17/2008
Posts: 23,365
Location: Nairobi
josiah33 wrote:
Seems like their LOW PRICE-MASS TRAFFIC STRATEGY they've used in India couldn't be replicated here in Kenya.


....and this was obvious from the very onset except to their management!!!
..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
QW25091985
#7 Posted : Wednesday, February 01, 2012 10:32:06 AM
Rank: User

Joined: 1/24/2012
Posts: 1,675
Location: In Da Hood
mlennyma wrote:
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?



3g is up and running , man !
Jamani
#8 Posted : Wednesday, February 01, 2012 10:45:43 AM
Rank: Elder

Joined: 9/12/2006
Posts: 1,554
@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
mlennyma
#9 Posted : Wednesday, February 01, 2012 10:50:35 AM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
@qw i think to start 3g,a launch would help them to advertise it,if indeed 3g is running and could not salvage the losses,then kwisha airtel..this was their last hope.
"Don't let the fear of losing be greater than the excitement of winning."
quicksand
#10 Posted : Wednesday, February 01, 2012 11:05:35 AM
Rank: Veteran

Joined: 7/5/2010
Posts: 2,061
Location: Nairobi
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
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