* * *2010/8/18 Njoroge Tito <titonjoroge@gmail.com> *
*Interconnect rates are currently 4.42 + 26% TAX. That means for every call (Zain - other network), Zain will be paying an approx amount of 5.57 per call, while charging the customer 3 bob.
Business wise, they will make losses per interconnect call. I think they hope that when the masses move to Zain (as they surely will), they will also be calling each other on Zain. I wouldnt call it sustainable, but then, I may be wrong.
The big winner of this will be safaricom.**
Also, if Zain has negotiated lower rates that 4.42 with the other networks, then the above does not necessarily hold true
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* * Looks like Zain got timely info on the new interconnection fee and chose to leverage on it, according to the report below. http://www.capitalfm.co.ke/business/International/Zain-Kenya-lowers-call-rat...