The offer is ok why you may ask,
1. Out of 10 people on anyones phonebook, 8 are on safaricom. Meaning you make more calls to safaricom. So why not stick with safcom and call them at Kshs. 2!
2. Most of the people switching to Zain are actually doing so to call guys from safaricom. Still why pay 3 when i can pay 2!
3. From an investors point of view, the more subscribers zain gets the better, why? Most of these guys will be calling the better option helping them make money through the interconnection fees.
4. What most guys don't realise is that even if a company is so mighty, it can't take so much losses into their books for long. If you look at zain, it has been making losses of which they have been carrying forward.Though today's investor looks at wealth maximisation rather than profit maximisation, profit has got a large part to play in that when i'm buying a stock i'm buying a share of there future profits. Simply said, how long do you think Bharti's shareholders are going to let 'Zain' eat into their wealth whereas safaricom is causing nightmares and rapidly expanding in many fronts (ICT and Banking-money transfer)thus creating more wealth?
Anyone who knows AT&T will know how this war might end.
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary