I remember several Wazuans including myself calling the oil price controls populist. People's pockets should be allowed to decide this type of thing.

muchknow-cross-subsidies effect only applies where the additional products are not profitable. Its a side show especially in a competitive and growing market like telco.
By the way, my point on impact of price decreases on tax collection (turnover goes up overall as Kenyans make more calls)on profitability of the various players can be seen by looking Safcom annual result presentation for 2010. Page 6/7/8 are very informative. According to this, Safcom only so a fall of 1.7% in its voice revenue! Point number two is that other types of revenue are going up massively.
http://www.safaricom.co....esults_Presentation.pdf

Finally, a word about mobile penetration. Kenya's is at just over 50%. The other 50% can't afford to make calls at current prices.
So info does the great General have that we don't have?

Wa bushes, airtel is not profitable here and safcom should be perhaps more profitable. Compare Safaricom Kenya and Airtel worlwide. How can safcom think of expanding like airtel? Out of Kenya like airtel out of India? Or Kenya does not deserve huge companies with huge potential? Is that what you are saying? They should be squashed by Indian firms?

I humbly stand corrected and apologize for misquote

Guys are we now saying that the only a business can grow is by charging high prices?
As I have just showed, Safaricom saw turnover fall by 1.7% despite having its price because Kenyans stayed on the phone longer due to lower tariffs. Why are we missing this point?
Might be why Kenya is yet to produce a world beater since this is the only place where we do the opposite of commonsense in business.
They way telcos will grow their profits and compete is to source cheaper phones (I agree this is a factor in increasing mobile penetration), offer greater coverage, be innovative in terms of their product offering (Safcom is leading here by a mile).