Sammy.

On Mon, Aug 30, 2010 at 12:50 PM, Andrea Bohnstedt <andrea.bohnstedt@ratio-magazine.com> wrote:

That's really the key issue, isn't it? They won't make money anytime soon - there's the low rates, but also the fact that they'll have to invest heavily in network and systems. Easy to moan about Safcom's customers service - but they manage 16m clients. I'm curious to see if Zain will grow their customer service at the same speed to accommodate all those new subscribers.

I also suspect that it'll be mostly very very price sensitive people who will change - again not the clientele that will earn the company much money.

In 2008, when Zain had the Vuka tariff (KES8 on and off net, if I remember correctly), the company made nearly USD90m losses. Last year, USD46m losses.

I found Mickael Ghossein's statement that 'the market is in a mess' quite telling. I suspect in this battle of the elephants, Orange and Yu are in most peril - which could easily contract the market again where subscribers have less choice.

Full disclosure: I'm a client with both big companies. There's only so much a girl can put into her handbag.

On 30 August 2010 12:31, Wainaina Mungai <wainaina@madeinkenya.org> wrote:

This is a very aggressive and most likely, a huge loss-making move in the short-run. I hope Zain has a well crafted (sustainable) longterm strategy.

If they are simply 'playing politics' against a 78% market leader (Safaricom), then they will eventually price their way out of the Kenyan market.

Kencell losses >>> Celtel losses >>> Zain losses >>> AirTel losses >>> oblivion (or market leadership)

My opinion is not influenced by my 'Safaricom shareholder/MPESA user' status ;-)

Wainaina

On Mon, Aug 30, 2010 at 11:43 AM, Alex Gakuru <gakuru@gmail.com> wrote:
BY MICHAEL KARANJA
Updated 13 minutes ago

NAIROBI, Kenya, Aug 30 - Mobile telephony operator Zain Kenya has
introduced Sh5 and Sh10 denomination airtime vouchers as it steps up
its efforts to capture the mass market.

The introduction of the new vouchers is seen as a move to make the
operator more accessible to the low-end market after a change in
strategy following the entry of its new shareholders, Bharti Airtel.

Zain Kenya Managing Director Rene Meza said the move is aimed at
complementing its recent 50 percent reduction of call charges.

“We are offering a wide range of scratch card denominations to suit
the needs of all individuals. Access to telecommunication services is
no longer a luxury but an integral part of each Kenyan’s
socio-economic needs,” Mr Meza said.

....

Read more: http://www.capitalfm.co.ke/business/Kenyabusiness/Zain-Kenya-makes-another-move-4606.html#ixzz0y4pjzlUG
Under Creative Commons License: Attribution Non-Commercial No Derivatives

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