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?

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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).

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Phares Kariuki

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With Regards,

Phares Kariuki

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