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+Bharti+Airtel/

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> 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] 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

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