It is OK for Safcom to call this 'Unsustainable Pricing' which they very well know it is not especially when it comes to SMS. Have been a customer for the last seven or so years and agree with with Erik here on the issue of SMS. I am still being charged 5KSH to send a few bytes of data to other networks and 3.50KSH to send the same within the same network. Don't ask about the sms bundles because they are not working for me. The purchasing system never seems to work when I need it to over the last few months. If they really wanted to charge lower for SMS, why not just say that the cost of SMS is 1KSH within network and nKSH to other networks? And why continue deducting the daily charges even when your line is dead for a few days for example in cases of loss? 'Unsustainable Pricing' sounds ok when being peddled to the media, when you want to sustain high profits in an impoverished economy. On Fri, Aug 20, 2010 at 3:52 PM, Erik Hersman <erik@zungu.com> wrote:
I wouldn't call 1Ksh SMS messages unsustainable, after all, the marginal cost of an SMS message is effectively nil. (interesting read<http://gthing.net/the-true-price-of-sms-messages> )
It is an aggressive move, they're cutting out margins on a cash cow product in order to win market share.
The Indians are incredibly good at keeping their costs down and running a highly efficient operation. Bharti has done this before in other markets, and Safaricom will have to get used to dealing with a competent competitor in this market for the first time.
Erik Hersman
www.ushahidi.com www.afrigadget.com | www.whiteafrican.com <http://www.afrigadget.com> | @whiteafrican <http://twitter.com/whiteafrican>
On Aug 20, 2010, at 3:29 PM, Mbugua Njihia wrote:
Safaricom wont stoop down to unsustainable pricing, MJ and his have their heads screwed on right - http://bit.ly/db6MYx
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