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HOW WILL SAFARICOM COUNTER ZAIN'S CRAZY LOW RATES?
youcan'tstopusnow
#1 Posted : Thursday, August 19, 2010 7:12:00 PM
Rank: Chief


Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
Zain have come up with crazy new call and message rates across ALL networks. This will mean reduced revenue for Safaricom as consumers may probably change ship. Safaricom may be forced to lower their own tariffs, ultimately leading to reduced revenues. Plus Zain has promised further cuts if Safaricom makes cuts themselves. Its a lose-lose situation for them. But they are light years ahead in the data market. While others are scrambling for 3G, they are testing their 4G network. But this advantage won't even last 2 years. Also their poor network is doing them a disservice. Safaricom won't be able to ''charge profitably'' anymore. Siku ya kiama imefika. I'm now left thinking that MJ is a genius. He knew to quit at the right time, unlike the other MJ's (Michael Jordan and Michael Jackson). He'll be known as the guy who made Safaricom, while poor Collymore will be known as the guy who lost Safaricom's 80 percent market share. People will be crying for the mzungu to come backsmile www.businessdailyafrica..../-/14xegdmz/-/index.html
GOD BLESS YOUR LIFE
Jaguar
#2 Posted : Thursday, August 19, 2010 7:18:27 PM
Rank: Member


Joined: 6/7/2007
Posts: 263
Location: humu humu
they should start charging those safcon subscribers receiving calls from zain a "receiving fee"
bird_man
#3 Posted : Thursday, August 19, 2010 9:06:10 PM
Rank: Veteran


Joined: 11/2/2006
Posts: 1,206
Location: Nairobi
@Jaguar haha!You are one evil genius!
Formally employed people often live their employers' dream & forget about their own.
Gatheuzi
#4 Posted : Thursday, August 19, 2010 9:17:29 PM
Rank: Veteran


Joined: 8/16/2009
Posts: 994
CCK plans to have interconnection fees eventually dropped. By making this reduction in peacemeal the charge will eventually be zero.
Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
MaichBlack
#5 Posted : Friday, August 20, 2010 11:12:28 AM
Rank: Elder


Joined: 7/22/2009
Posts: 7,452
Jaguar wrote:
they should start charging those safcon subscribers receiving calls from zain a "receiving fee"

You are surely a genius!!! But I don't think CCK would allow this. If it is legal, it would be a stroke of genius. 5/= per minute for every "other network" [Zain] call you receive. Everyone would refuse to pick Zain calls. Or they pick and talk for 2 seconds - "Nipigie na Safaricom" - and they disconnect. LOL. Laughing out loudly Laughing out loudly Laughing out loudly

Nice thinking jaguar. Can we start a business together?
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
kanda
#6 Posted : Friday, August 20, 2010 2:26:28 PM
Rank: Member


Joined: 3/10/2008
Posts: 68
i dont see the genius in that coz everyone would block all calls on the green sim card in favor of the red (or any other color) to avoid such silly charges. the fact is whatever safaricom does, the writing is on the wall...this was the last year for 20b profits and the share will take a serious hit that will be impossible to recover from...wanjiku was duped!
MaichBlack
#7 Posted : Friday, August 20, 2010 5:53:12 PM
Rank: Elder


Joined: 7/22/2009
Posts: 7,452
kanda wrote:
i dont see the genius in that coz everyone would block all calls on the green sim card in favor of the red (or any other color) to avoid such silly charges. the fact is whatever safaricom does, the writing is on the wall...this was the last year for 20b profits and the share will take a serious hit that will be impossible to recover from...wanjiku was duped!

@kanda - You don't seem to get the logic here. Most people migrating to Zain are doing so mainly because they can call Safaricom subscribers at 3/=. Safaricom has 80% market share as it is and as result the average Kenyan's phone book is 80% Safaricom. If you take this advantage away, then you take Zain back to square one!

If you still don't understand, ask yourself this, if the new tariff plan was 3/= on Zain and 8/= to other networks, would there be such a hullabaloo? I don't think so. So companies are charging 0/= per minute within the network from 10am to 5pm [I think] and we are yet to see the exodus.
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
sheep
#8 Posted : Friday, August 20, 2010 8:30:58 PM
Rank: Veteran


Joined: 7/24/2008
Posts: 781
SAFARICOM YOUR LOW RADIATION NETWORKLaughing out loudly
The utimate goal of investing is to buy low sell high;if we re-write this core equation in psychology terms it becomes buy fear sell greed.
Horton
#9 Posted : Friday, August 20, 2010 8:42:43 PM
Rank: Veteran


Joined: 8/30/2007
Posts: 1,558
Location: Nairobi
sheep wrote:
SAFARICOM YOUR LOW RADIATION NETWORKLaughing out loudly

Loool don't forget the low profit network too

Btw, if Scom comes up with a similar deal to yu n zain, the impact will be only on bottom line, which is what matters. Profit should halve( taking into account people will call more coz of lower rates)
kanda
#10 Posted : Friday, August 20, 2010 11:13:50 PM
Rank: Member


Joined: 3/10/2008
Posts: 68
@MB i get the logic alright. you are thinking suffericon before wednesday. i can bet you the average phonebook right now is 50% zain. the exodus started two days ago....you must be writing this from under a rock lol
msotoville
#11 Posted : Saturday, August 21, 2010 5:12:56 PM
Rank: Member


Joined: 4/14/2010
Posts: 183
Location: Nairobi
For 250 MB Data, Safcon gonga'z you 1,200/-. Add three sok to this figure (1,500/-) and Orange gives you a 1GB Data bundle.

Safcon operates on one principal only - GREED!

May their share price tumble to mere cents. ABK!
So nice that its nasty, so bangin' its busting,
So slick that its sick, so dope its disgusting!
kyt
#12 Posted : Saturday, August 21, 2010 5:43:16 PM
Rank: Elder


Joined: 11/7/2007
Posts: 2,182
@ msoto, if there was a like button, i would have liked your status 4 shizzle!
LOVE WHAT YOU DO, DO WHAT YOU LOVE.
McReggae
#13 Posted : Saturday, August 21, 2010 9:14:22 PM
Rank: Elder


Joined: 6/17/2008
Posts: 23,365
Location: Nairobi
msoto, 10 MB for 8 bob per day teanslates to 300 MB for kshs 240 in a month for safcon......another way of looking at it!!!!!!
..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
the deal
#14 Posted : Saturday, August 21, 2010 9:31:01 PM
Rank: Elder


Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
@Kyt hehehe just enjoy ur new tariff...it wont last for long...
tony stark
#15 Posted : Saturday, August 21, 2010 10:07:07 PM
Rank: Veteran


Joined: 7/8/2008
Posts: 947
MaichBlack wrote:
Jaguar wrote:
they should start charging those safcon subscribers receiving calls from zain a "receiving fee"

You are surely a genius!!! But I don't think CCK would allow this. If it is legal, it would be a stroke of genius. 5/= per minute for every "other network" [Zain] call you receive. Everyone would refuse to pick Zain calls. Or they pick and talk for 2 seconds - "Nipigie na Safaricom" - and they disconnect. LOL. Laughing out loudly Laughing out loudly Laughing out loudly

Nice thinking jaguar. Can we start a business together?


When i first bought my safaricom number 1999 safaricom would charge me to receive calls and that was intra network charges I only had 10 contacts!
Njung'e
#16 Posted : Sunday, August 22, 2010 12:58:46 PM
Rank: Elder


Joined: 2/7/2007
Posts: 11,935
Location: Nairobi
@deal,
How long is not long?..haha!!....just enjoy while it lasts.
Nothing great was ever achieved without enthusiasm.
Tin-Man
#17 Posted : Monday, August 23, 2010 12:02:34 AM
Rank: Member


Joined: 9/4/2008
Posts: 6
I think Safaricom should simply lower their upper limit for super ongea tariff rate from 8bob to kedo 4bob and let the minimum hold as-is. As for the sms rates,they should stick to the 15sms' for 10 bob and 5 sms' for 5bob, but across all networks. Then we w8 and see the mhindi's response to that.
As for data, give competitive 'pepea points' based on voice calls made using line, except for those using safaricom modems.
As an investor in safaricom and also having my business mainly relying on mkesho-mpesa product as well as 90% of my clients using my safaricom number to contact me, I would hate to see Safaricom operations severely affected because of this.Sad
If only they listen to their customers,Pray and model a profitable product around their customer requirements. This would be the best gift Michael Joseph would leave for safaricom.
kyt
#18 Posted : Monday, August 23, 2010 1:45:13 AM
Rank: Elder


Joined: 11/7/2007
Posts: 2,182
@ deal indeed i will enjoy and if saf lowers its own; am in. Win-win my guy! Ha!
LOVE WHAT YOU DO, DO WHAT YOU LOVE.
KenyanLyrics
#19 Posted : Monday, August 23, 2010 2:35:38 AM
Rank: Veteran


Joined: 4/16/2010
Posts: 906
Location: Nairobi
Tin-man, one of the selling points of Zain's offer is it's simplicity. Changing the Super Ongea model will not do. It is 3 bob per minute Saf to Saf or nothing.

Having said this, what I see Safaricom actually doing is introducing some data bundle for their users to 'bamba'
radio
#20 Posted : Monday, August 23, 2010 7:03:04 AM
Rank: Veteran


Joined: 11/9/2009
Posts: 2,003
McReggae wrote:
msoto, 10 MB for 8 bob per day teanslates to 300 MB for kshs 240 in a month for safcon......another way of looking at it!!!!!!


l wonder, what can one do with 8MB of data?
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