
Last year in India I met an IT professor, Ashok Jhunjhunwala. Professor at IIT Madras. He's on the Board of Tata Communications, govt advisor, and on and on. Brilliant man, one of the pioneers of the Indian ICT sector. Couple of lines from my notes summarizing his comments: "how can you make money at 1 cent/minute? Indian mobile operators can: that is the Indian market. And once you can provide services at 1 cent/minute, of course you will go to markets where the cost is 10 cents/minute and kill them. This can be applied to many areas." He wasn't just talking about India's mobile market, but that was the example. Indian businesses cut costs to the bone while also providing quality. It's how they have been so successful. He was suggesting that if Indian business can transfer these business practises/models to other markets they'll clean up. I don't know how India's mobile prices compare KES to rupee, might be worth someone from CCK or the PS' office taking a look at Indian mobile market to see what Airtel's and other operators prices and services are like. My guess is Airtel may be dropping prices to levels similar to those it offers in India. Perhaps for the moment they are burning money to pick up subscribers, but in the longer term they might really know how to offer service at that price and still make profit. Adam