[quote=BHARTI AIRTEL]
Bharti, controlled by billionaire Chairman Sunil Mittal, fell in Mumbai trading as intensifying competition with Vodafone Group Plc and Reliance Communications Ltd. drove down monthly phone bills in India by 20 percent. Bharti is expanding into countries including Kenya with the $9 billion purchase of the African assets of Kuwait’s Mobile Telecommunications Co. to offset slowing growth at home.

http://bit.ly/ctuKQ6[/quote]

Actually..competitors in its india market cut their rates and Bharti had to follow suit.. the same way safaricom is likely to lose from being forced by competition,chiefly Zain, to cut down call costs.

So if cutting of rates is hurting Bharti's profits, do you think it will hurt Safaricon's profits too?

The signs have all been there. Safcom'c profits will have to fall. Perhaps not in H1 2010-11, but certainly in the next half.

Safaricom [which has only one market] will be hurt especially in the Voice segment

Okay so tricky to decipher Kenya's performance but in general for 16 countries in Africa:
Revenue__$864m
EBITDA___$207m
EBIT______$37m
EBITDA at 23.9%

Loss after tax $(19.2m)
Overall the performance of Africa has declined compared to last year.

Bharti Africa now has 40m customers in Africa. Last year Sep 09, Zain had 41m customers with Kenya contributing 3% customers with 2% revenues to total cake.

I would be shocked if Zain Kenya was making amy profit. I speculate they've managed to reverse the trend of losing customers (-14% growth) to remain at level of just over 2m subscribers.