Since I was with Collymore qhen he made the announcement, I can say this: it was not an easy decision for Safaricom to make. I totally disagree with some of their data pricing plans but I see the logic of the retail voice tariff increase. The company has 2100 plua base stations many on own masts. Exh of them needs a standby generator to keep it runnuning in case Kenya Power does what it does best: plunge people into darkness. Reason 2: Kenya Airways, the only other company besides SafCom, Kenolkobil and Kenya Power that generates a billion dollars a year, is not entering dedicated cargo business blindly. One of the big imports from the Far East is telecom equipment, a lot of it by or for Safaricom. With the Kenya Shilling sliding wildly, Safaricom is ending up paying a lot more than it budgeted, not just for the equipment but also for the transport becuase of fuel. The company did not say if it will increase or reduce tariffs if and when the current economic environment changes, my guess would be yes to an increase if inflation keeps rising and the Shilling continues to slide. We are looking to the US to announce a dip into recession which would plunge crude prices by 20-30 USD per barrel the same day. It would begin to solve our currency issues. On 9/30/11, waudo siganga <emailsignet@mailcan.com> wrote:
Since we are in a competitive environment I would expect news of individual operators changes in price to be useful only for purposes of informing consumers to take decisions. The importatnt thing is that no operator should be stopped from reducing or increasing their prices as they wish. My own belief is that the price elasticity of demand for mobile voice is fairly negative, especially given that an individual consumer can run multiple SIMS. Let's wait and see.
Waudo
On Friday, September 30, 2011 4:40 PM, "Harry Hare" <harry@africanedevelopment.org> wrote:
This has been long coming [1]http://bit.ly/oYOiHr Enjoy your weekend.
Harry _______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke http://lists.kictanet.or.ke/mailman/listinfo/kictanet
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