On Mon, Aug 23, 2010 at 3:37 PM, Phares Kariuki <pkariuki@gmail.com> wrote:
For you to leverage an economy of scale, a prerequisite is a high number of customers/units produced. e.g. Toyota can leverage economies of scale, Maserati, not quite... Safaricom currently has the most subscribers, they can afford to have the lowest call tarriff... Zain, not so much... They don't have as many people on their network and have to maintain an equally large network, meaning that their cost per subscriber is actually *higher*... They will leverage said economies of scale if/when they have more subscribers on their network. For now, that's fairly heated air.
@Phares, I will not comment on your second paragraph, but for the first, please 's/Zain/Bhart Airtel/g' and you'll see that what we are calling Zain here is not and as such Safaricom really needs to think. I am fearing for my shares at the NSE already. Safaricom should take courage and just think this out - they are not dealing with Zain anymore because it is not! -- Best regards, Odhiambo WASHINGTON, Nairobi,KE +254733744121/+254722743223 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ "If you have nothing good to say about someone, just shut up!." -- Lucky Dube