The market will never be the same again. Airtel's 100millin plus
subscribers gives the a leverage on economies of scale to sustain this
so called 'pricing wars'

Vodaphone has 470 million subscribers... And more revenues... If you think about, Zain will have to recoup their costs somehow, what happens, five years from now, when competition has been stamped...? You guessed it, time to recoup :) Vodaphone actually has around 300% as much revenue and income as Bharti... When it comes to muscle, Bharti does not have the upper hand. If the game was strategy, I'd agree.

If you think about it, the 1-2  million plus customers who moved to Zain are not good for Zain either, as loyalty is not guaranteed. When Safaricom lowers rates, same customers will move back, or if Orange gets cheaper, they move to Orange. You basically cannot think long term with the new aquisition. Hasn't it struck you as odd that no company has lost as much market share & revenue after each tarrif battle than Zain/Airtel has? Market share dropped after Vuka... Orange, Essar are thinking long term. Getting loyal, sustainable customers with whom you can plan. Bharti will bank on 3 million shifty customers as opposed to Essar/Orange who are banking on 500,000 loyal customers... The best type of business is repeat, eod... 

--
With Regards,

Phares Kariuki

| T: +254 734 810 802 | E: pkariuki@gmail.com | Twitter: kaboro | Skype: kariukiphares |

_______________________________________________
Skunkworks mailing list
Skunkworks@lists.my.co.ke
http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks
------------
Skunkworks Server donations spreadsheet
http://spreadsheets.google.com/ccc?key=0AopdHkqSqKL-dHlQVTMxU1VBdU1BSWJxdy1fbjAwOUE&hl=en
------------
Skunkworks Rules
http://my.co.ke/phpbb/viewtopic.php?f=24&t=94
------------
Other services @ http://my.co.ke