Safaricom responds to Zain and YU with the lowest call rates in Kenya.
It was inevitable after Zain and YU lowered their call and SMS rates in Kenya dramatically last week as posted on this blog. Therefore, in a move that is likely to retain Safaricom’s 16+ million subscribers it today launched a new promotional tariff that will see its subscribers call from as low as Kes. 2.00 per minute. Safaricom’s new tariff represents the lowest calling rate (currently) on any mobile network operator in the Kenyan market.
Under the new tariff called “Masaa Tariff”, Safaricom customers will be able to make calls within the network at between Kes. 2.00 to Kes 4.00, depending on the value of their last top-up. Calls to other networks will cost Kes. 3.00 to Kes 5.00. Subscribers who buy airtime worth Kes. 100.00, Kes. 250.00, Kes.500.00 or Kes 1,000.00 will be able to make on-net calls at Kes. 2.00 per minute, while the off-net rate will be Kes. 3.00.
On the other hand, airtime purchases worth Kes. 5.00 or Kes. 10.00 will have a discounted flat rate of Kes. 5.00 for both calls terminating within and outside the Safaricom network. Subscribers who buy airtime worth Kes. 50.00 will now pay Kes. 3.00 a minute for both on and off-net calls whilst for Kes. 20.00 the on-net rate is Kes. 4.00, while calls outside the network will cost Kes. 5.00 per minute.
Per second billing applies on the Masaa Tariff, which takes effect starting August 24 to September 23 and is primarily targeted at Safaricom’s prepaid subscribers.
The Author
15 Comments
The problem with safcom is that they post these tariffs to maintain some people into the network. The problem with some Kenyans, is they get duped into remaining in the network. One thing though, Safcom know its customers and thus they unleash such tariffs, and thus they work!
Am moving for good. Will have the MPESA line active, lightly active.
It’s a totally new take on: Ndovu ziki pigana nyazi huumia. Kenyans are now the ones laughing all the way to the airtime vendors. The only problem is that people might now have their mobile phones practically glued to their ears(has that tumor thing ever been confirmed…?).
and how do you migrate to the new tariff?or it is the default one?
Only catch is that you have to load up on 1,000, 500 and 250 bob airtime to call and worse still, its a promotion. That is not a response to Zain and Yu! That a reaction…and a bad one at that!
this is not good enough on safaricom’s part. we need lower tariffs not new math.
It is a race to the bottom. The biggest losers will be the shareholders of Safcom. Bharti is doing to Kenya what it did in India – Kill any opportunity for any operator to make any decent money. Safcom being the highest cost operator they could end up being the biggest losers. If Bharti brings the price to 1 bob, that would be the final nail on Safcom casket.
.-= Constantine´s last blog ..Demonstration of Perfect Runner’s Foot Strike =-.
i sincerely hope that bharti will come up with a competitive price package when they roll out their 3G network. current safcom pricing is just expensive. we need compe in the 3G market ASAP
Well, this ie getting tastier by the day, orange is at it with 2 bob on-net and 4 bob off-net. Plus a 10-5pm free calls for 100 bob a month, was to switch to zain but am tied to saf and orange
.-= Martin Gicheru´s last blog ..Some facebook changes to marvel at =-.
Safaricom is not a sleep as what may people think. It is fully aware of what is happening in it backyard and it had seen it 2 years before. In as much has people are moved with Zain euphoria of dropping it call rates by half, Safaricom is keen in securing its entire market share and expanding its coverage. It is for this reason it in a span of 1 year it has opened 11new retails centers across the country. Safaricom Kiboswa Switch covering Western rift and entire western Kenya is now a Stand alone facility relieving the traffic congestions whose pangs would be felt now that people are calling as low as 2 bob a minute.
As the Zain euphoria continues, Safaricom is “silently†acquiring The Nokia Siemens’s SDM(Subscriber’s Data Management) platform which will enable better monitoring and optimization of its network based on demands of its subscribers.
Safaricom was initially was taken hostage with network congestion. It wouldn’t come with any lower tariff coz of the fear of network clog. They tested this 3 years ago with the free call from 11pm ago (long Before Bharti thought of aquiring Zain’s Africa assets) and the effects were disastrous .Now it spent most of their profits in network expansion from the last 2 years (from May 2010 additional 11B is to be purely spent on further network expansion ).To be honest, Safaricom now has the muscle to to lower its call rates even further and beat the competition.
Recently MJ stated that he has the power to lower is calls even to one bob a minute for the next one year but that will be misuse of “market dominance†of which CCK should penalize him.
POINT TO PONDER:
If we all sell fish, lets compete on it’s quality but not on who offers the lowest price. Otherwise the retailer with the most money will make all his/her competitors close and he/she will remain with the entire market to DICTATE.
@benochali – highly insightful!
[…] of Kes 0.50 – half of Zain’s SMS rates of Kes. 1.00 per message. On August 24, 2010 Safaricom joined the price wars with subscriber calls at the rate of Kes. 2.00 per minute. The price wars had begun in […]
@benochali 26/09/2010.. cut the crap. todays reality is better than tomorrows vain, ‘juicy’ dangling carrot. to hell with suffericon.
[…] networks. SAFARICOM UPDATE: SAFARICOM RESPONDS: Safaricom finally buckles under the pressure and cut their price quite substantially. Safaricom announces a new offer [one-month-offer] that they hope with which […]
[…] networks. SAFARICOM UPDATE: SAFARICOM RESPONDS: Safaricom finally buckles under the pressure and cut their price quite substantially. Safaricom announces a new offer [one-month-offer] that they hope with which […]
Great initiative