KES 80M?? I think not. I know Mxit has grown alot and all lakini I fail to see where they have cost MTN the 80M. Because in essence Mxit enables users to send messages through chat and not SMS, so basically Mxit eats into your revenue and not supporting it saves you money and not make you lose it. I stand to be corrected though. v On Fri, May 21, 2010 at 12:57 PM, Erik Hersman <erik@zungu.com> wrote:
Just to point out, Safaricom didn't create Mxit, they're importing this from South Africa. Basically, using their marketing muscle to get major inroads in the data space (as you pointed out).
How is MTN SA losing KES 80M per day? Aren't they making some of that back on data charges alone? Mxit isn't tied to just one network, you can access it from anywhere you can get a data signal, so Zain and Yu will work here too.
Erik Hersman www.whiteafrican.com <http://www.afrigadget.com> | @whiteafrican<http://twitter.com/whiteafrican>
On May 21, 2010, at 11:55 AM, David Kiania | Asentric Consulting Ltd wrote:
For all the flack Safcom gets on this list we have to give them marks for innovation and forethought. In today's newspaper they have launched Mixit (http://www.mxitlifestyle.com/) is a Peer-to-Peer IM client that runs on mobile-to-mobile and desktop-to-mobile. While some see this as cannibalizing SMS revenues, it's a stroke of genius because they still stand to make cash from the data traffic as opposed to loosing it to a competitor all together. (Rule No. 4 in business: Cannibalize your revenue and business model before your competition does it for you)
After declining to support Mixit as a product, MTN SA now looses more than 8M Rand (KES 80M) a day, and the sad part, the app runs on their platform on either gprs/edge.
Kudos Safaricom, You Rock!
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