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The Bharti Airtel effect begins taking shape at Zain with new low tariffs.

In two full page ads in today’s editions of the Daily Nation and the East African Standard, Zain has announced unprecedented low and permanent tariffs for both mobile calls and SMS messages to ALL networks in Kenya.

In a move that is clearly geared towards wooing a large number of subscribers from market leaders Safaricom, Zain has announced a new low tariffs of Kes. 3.00 to call any mobile network in Kenya as well as Kes. 1.00 per SMS message sent to any mobile network in Kenya.

This confirms that Bharti Airtel’s influence is starting to take shape at Zain since it was recently acquired with the rest of its African operations. Bharti Airtel is well known for having a low-cost and high volume business model that has made it extremely popular and successful in India.

In particular, the full page ads today have a clincher at the bottom showing that they are clearly targeting Safaricom by stating that “going green is not always the better option”. In addition, the ads also indicate that there are no terms and conditions attached to the new tariffs and that these are indeed permanent.

Going forward, what remains to be seen is how Safaricom and the other mobile networks in Kenya will respond to these new low-cost tariffs. However, in concluding, what can be expected is that revenues will most probably take a hit for all of them as they will have to match or lower the new tariffs to retain their customers. So, let mobile tariff wars begin afresh! 🙂

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4 Comments

  1. Jaffar Mohamed
    August 18, 2010 at 8:13 am — Reply

    way to go zain. let higher prices be due to add ons not voice or text. saf com have exploited us for long. way forward for me: have always had a samsung duo sim phone with the default sim being yu and safcom being line 2. with the new arrangement zain is now default and yu takes safcoms place. safcoms sim goes under the battery, just in case i need mpesa. got to wait for “Data wars” to see if i will need to migrate from orange’s unlimited ev-do offer which serves me well.

  2. Moses Muchemi
    August 18, 2010 at 2:09 pm — Reply

    safaricom’s fate will be sealed wen zain does the same with 3G..then al trash my safcom card

  3. August 19, 2010 at 1:56 am — Reply

    I want a ringside seat for this one. The winner will definitely be the Kenyan consumer. Now all we need is number portability

  4. August 19, 2010 at 2:56 pm — Reply

    this is the best possible thing michael joseph sits down with pride but if he only knew that safcom is never even in our minds he will be shaken kudos zain
    yu is announcing something very nice 20/08/2010

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