Thursday, October 16, 2008

Safaricom Strikes Back

Safaricom had to strike back in the wake of cheap tariffs from Vuka and Orange. And it did strike back with a tariff arrangement that will make some of it’s subscribers jump for joy and other curse. In the jibambie arrangement, the higher you go the cooler it becomes. Top up with bigger money and you call at cheaper rates.

Bottom line they’re rewarding their high denomination card buyers but what are they at the same time telling the lower card users? Michael Joseph will be at pains to explain that they’re not trying to shun them but in the end that is just the way it looks.

Just when you thought lowering tariffs at ungodly hours was not a good idea…..

16 Comments:

Ivan said...

That's not fair at all... it's only a matter of time before one of our stupid networks comes up with the same plan and hails it as being revolutionary and stuff

Pink M said...

Safcon is in a world of it's own. The in thing now is lowering the interconnectivity charges. Keeping them at 25bob isn't helping them. I'm with you, they're punishing the small guy. Come to think about it, I haven't loaded safcom all week.

BP ONE said...

Michael Joseph has to go back to his drawing board and come up with a better tariff. Since we already have one bop for one minute of Orange, I suggest, he should give us something like Sumuni per minute if he is really serious and eager to keep his customers. After all the Safaricom made billions from the common wananchi in the past years, why can’t he realize this is the pay time period and the right occasion to reward and keep the loyal customers of safaricom.

Shiko-Msa said...

Ivan, PinkM, BPOne I cant believe some people sat in a boardroom and came up with such a plan. Now they sound like they're trying to be elitist. Something like what Kencel did in the past and are still recovering from it.

I guess Safcom should now look for new adverts and remove all those common mwananchi adverts they've been running.

bankelele said...

Keep the high income subscribers happy, and also keep them from buying airtime on Vuka with one stroke
- PinkM i think its' Kshs. 15 not 25 across networks now

Shiko said...

True Banks. Plus enyewe emotional thinking aside when I look at it from a business side the cost of printing bamba 20 does not warrant a tarrif of 3 bob a minute on the same. It won't make business sense. But I've a feeling Safcom may have to do another review soon depending on reactions from the other two.

But is Safcom not risking losing the low income earners?

greamhouze said...

To me this seems a brilliant idea. Like there are those who load 100 yet they can afford the 250 or even a higher denomination. But the hustle of where u r placed after loading is the problem. But note that they made sure the max is at 8KE just to rudisha those who have vukad. My friends joke that when Econet comes they will have a tariff called 'kamuni' lets see how this unfolds. Pink I hope you are not a shareholder of safcom!

Pink M said...

Thanks @ Bankelele, it's actually 15 bob.

@ Gream, you can be sure I'm a shareholder, actually on 2 counts :)
I hear you on this being brilliant, but I have no time to calculate call costs. What happens if I load 250, then halfway add 100bob? With their system issues, can they really handle this billing confusion? Isn't it easier to just load Zain and call at a flat rate? What about the post paid guys? I always felt safcom gave them a raw deal.

@Shiko, sorry for mini posting on your blog.

eleet said...

unfortunately as a business you have to look at where your bread is buttered, make them happy, more work for less money is a no go zone for many businesses.

post paid now, i am assured, are to be charged 4 shillings per minute, until end of december at least.

See how they played that? i would have moved to pre-paid in an instant if they didnt have.

joyunspeakable said...

postpaid....am one of them and i think its unfair. four bob and there is a guy paying 3 bob?

then there is interconnectivity?

at least safcon are now doing catch up now. there is need for them to try harder

Peter Njenga said...

Honestly, I found it hard to believe that senior Safaricom execs sat in a boardroom and invested much time and effort to come up with this mindless promotion.

But then again, they are the same guys who chomoad the weird night-runner tariff a few weeks back. Truth be told, desperate times do call for desperate measures.

Meanwhile, Zain continues to emerge as the Purple Cow in Kenya's Telecom's sector.

About Orange, I can only reserve my comments as I await the launch of Econet sometime next month.

Speaking of Econet, they either can learn a lot from these happenings or be afraid. Very afraid!

See the rest here: http://www.peternjenga.com/2008/10/mobile-wimax-broadband-internet-and.html

Shiko-Msa said...

Lol PinkM you're most welcome to mini and even major post. It's always a pleasure.

Greamz it's huge advantage to those who can afford it. people are now 'complaining' that credit is not kwishaing! Lol. Na bado we're yet to start calling at 2 bog or 1 bob or free.

Joy why are they still holding onto interconnectivity? Kwani? That's probably the next thing they'll be dropping after the other players come in.

Eleet I'm on prepaid and for sure credit is not kwishaing. at least not as fast as we're used to.

Peter I've still not vukad for some reason. let me see the next step someone makes then I can decide.

Nairobian Perspective said...

at this rate safcom will die a natural death! ati keep the high income guys happy guess what? of the 8 million subscribers i believe less than a million fall on high income category!This is Kenya where more than 50% of the economy lives on less than a dollar a day! so like many others as evidenced in this forum i feel jilted by my provider that i have become so happy after vukaring!(Kencell learnt the hard way Safaricom will learn even harder that the customer is king and never loose even one customer)

Dont you just hate it when this "all wise" blue/white collar boardroom guys sit in a hotel somewhere and forget who made them get where they are!

Shiko-Msa said...

haha Nairobian I can just feel your anger Lol. It's seeping thro the comp! I'm yet to Vuka. Dunno why.

Anonymous said...

"Orange lowers cross network calling rates to Sh6 a minute...
All its calls have now gone down to Sh3 a minute while off-net calls will go down to Sh6 a minute, making it the cheapest off-net tariff in Kenya" see http://www.eastandard.net/InsidePage.php?id=1143997665&cid=14&.
We said last year the future was Orange,that one didn't come...but here is another orange,it sounds good for the common man.The future is Orange at lest tariff wise.

Shiko-Msa said...

Thanks Anon for the info. This is a very enjoyable war!