Feels  like  a David  vs Goliath duel…Zain  is on point ….Bahrti  has the edge … experience  with  similar  market –India….I am  relishing  this  duel  ..watch this  space…

 

From: skunkworks-bounces@lists.my.co.ke [mailto:skunkworks-bounces@lists.my.co.ke] On Behalf Of Tony Likhanga
Sent: Wednesday, August 18, 2010 7:23 PM
To: Skunkworks Mailing List
Subject: Re: [Skunkworks] inZain tarrif

 

 

2010/8/18 Njoroge Tito <titonjoroge@gmail.com>

Interconnect rates are currently 4.42 + 26% TAX. That means for every call (Zain - other network), Zain will be paying an approx amount of 5.57 per  call, while charging the customer 3 bob.

Business wise, they will make losses per interconnect call. I think they hope that when the masses move to Zain (as they surely will), they will also be calling each other on Zain. I wouldnt call it sustainable, but then, I may be wrong.

The big winner of this will be safaricom.

Also, if Zain has negotiated lower rates that 4.42 with the other networks, then the above does not necessarily hold true

 

Looks like Zain got timely info on the new interconnection fee and chose to leverage on it, according to the report below.

http://www.capitalfm.co.ke/business/International/Zain-Kenya-lowers-call-rates-4566.html


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