They operate in a multi-sim envirionment. And they are effectively reducing their cashflows by offering free calls within their wn network. So how do they even make payroll let alone running costs for the network?
I think the idea was to get as many subscribers (CRITICAL MASS) to their network as possible.
They now have close to 1.4 million subscribers on their network.
From today's dailies I have seen that they are now charging 2 bob......this will still make them the cheapest network and improve their cash flow...on a minimum YU can make 2.8 million bob per day.
With 2.8 million daily you can have a good business.
They may not be like Safaricom or Orange but they can have a small lean ,with good quality products and make a small tidy profit.
How many businesses apart from Equity,Utility and Telecommunication companies do you know who have 1.4 million customers?
On Tue, Sep 27, 2011 at 10:01 AM, Phares Kariuki <pkariuki@gmail.com> wrote:No clue :-).I am struggling to wrap my head around their business model.On Tue, Sep 27, 2011 at 9:50 AM, Samuel Mbugua <samuel.mbugua@gmail.com> wrote:
Very well...but how do they plan to meet their overheads in the meantime?On Tue, Sep 27, 2011 at 9:48 AM, Phares Kariuki <pkariuki@gmail.com> wrote:
On Tue, Sep 27, 2011 at 9:45 AM, Samuel Mbugua <samuel.mbugua@gmail.com> wrote:
_______________________________________________So...while Yu is crowing about all day free calls, they are getting sued silly for outstanding charges by KDN..
http://www.telegeography.com/products/commsupdate/articles/2011/09/26/essar-reaches-temporary-settlement-with-kdn/
Which then begs the question: What, if any, is their business strategy?--
Where the needs of the world and your talents cross, there lies your vocation. - Aristotle
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Gain as many subscribers as possible. Sell...The only telco's with decent business models in .ke seem to be Orange + Safaricom (both, ironically, partly government owned).--
With Regards,
Phares Kariuki
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With Regards,
Phares Kariuki
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