On 8/23/10, John Doe <
fivepings@gmail.com> wrote:
> Guys, what if Zains price is the lowest economically sustainable price?
> Safaricom can't go (sustainably) lower than that. And if they match Zain,
> then they still lose face.
>
> I just wonder why we are all assuming that the guys at Bharti don't know
> what they are doing.
> They have been doing this succesfully in India. It is a game of largest
> volumes at the lowest possible price you can charge. Airtel is looking to
> boost its volumes.
>
> All in all, my take is Safaricom will loose signinficant market share and
> Zain/Airtel wil gain significant market share. The winner here is you and I.
> Boy am I enjoying watching this unfold....
>
>
> On Mon, Aug 23, 2010 at 4:08 PM, Odhiambo Washington <
odhiambo@gmail.com>
> wrote:
>
> >
> >
> >
> >
> >
> > 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
> >
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