Would this suffice : 1.Bharti is one of Asia's leading integrated telecom services providers with operations in 19 countries across Asia and Africa.(Scale) 2.Further The Telemedia business provides broadband, IPTV and telephone services in 89 Indian cities.(Diversity) Ref: http://www.airtel.in/wps/wcm/connect/about+bharti+airtel/Bharti+Airtel/About... From: skunkworks-bounces@lists.my.co.ke [mailto:skunkworks-bounces@lists.my.co.ke] On Behalf Of Phares Kariuki Sent: Monday, August 23, 2010 3:38 PM To: Skunkworks Mailing List Subject: Re: [Skunkworks] Safaricom wont stoop down to unsustainable pricing, MJ and his have their heads screwed on right - http://bit.ly/db6MYx 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. If you are looking at it from a global perspective, each operation is supposed to be a separate legal and fiscal entity, hence Orange is not too keen on financing it's Kenya operation from the other operations. Why? You basically take capital away from a performing business and pour it into a non-performing one, meaning you are weaker in that one business and not necessarily any stronger in your non-performing operation.... On Mon, Aug 23, 2010 at 3:20 PM, Pius Walela <PWalela@strathmore.edu<mailto:PWalela@strathmore.edu>> wrote: Bharti is already leveraging economies of scale ...and has capacity to do more ....Orange can also .....the odd one out is......use elimination method.... From: skunkworks-bounces@lists.my.co.ke<mailto:skunkworks-bounces@lists.my.co.ke> [mailto:skunkworks-bounces@lists.my.co.ke<mailto:skunkworks-bounces@lists.my.co.ke>] On Behalf Of Phares Kariuki Sent: Monday, August 23, 2010 3:02 PM To: Skunkworks Mailing List Subject: Re: [Skunkworks] Safaricom wont stoop down to unsustainable pricing, MJ and his have their heads screwed on right - http://bit.ly/db6MYx And if Zain and YU do the same? Safaricom can not do that, it'll be a demise to them pia Safaricom are currently the only network that can leverage economies of scale... Basically, if all charge the same rate, Safaricom, all factors remaining constant, will have at least 6 times the revenue of the competition given market share... -- With Regards, Phares Kariuki | T: +254 734 810 802 | E: pkariuki@gmail.com<mailto:pkariuki@gmail.com> | Twitter: kaboro | Skype: kariukiphares | ________________________________ Strathmore University provides all-round education in an atmosphere of freedom and responsibility. This email and any files transmitted with it are intended solely for use by the recipient(s) to whom it is addressed and may contain confidential information. If you have received this email in error please notify the sender immediately and permanently delete this email and/or any files attached to it from your computer. Please note that any views or opinions presented in this email are solely those of the author and do not necessarily represent those of Strathmore University. The University accepts no liability whatsoever for any loss or damages incurred, or suffered, resulting, or arising, from the use of this email and/or its attachments. The University warrants neither the integrity of the e-mail nor its freedom from errors, viruses, interception or any other form of interference. ............................................................................ Website: www.strathmore.edu<http://www.strathmore.edu> _______________________________________________ Skunkworks mailing list Skunkworks@lists.my.co.ke<mailto: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-dHlQVTMxU1VBdU1BSWJxdy1f... ------------ Skunkworks Rules http://my.co.ke/phpbb/viewtopic.php?f=24&t=94 ------------ Other services @ http://my.co.ke -- With Regards, Phares Kariuki | T: +254 734 810 802 | E: pkariuki@gmail.com<mailto:pkariuki@gmail.com> | Twitter: kaboro | Skype: kariukiphares |