Commentary

Entry of many mobile companies in EAC will have much yet little positives

This post has already been read 4868 times!

By Muvunyi Timothy

I was just surprised and made optimistic and skeptic by registration of the fourth fifth mobile phone company since they walked into the Rwandan market early this century.  Airtel will be the fifth mobile company to seek segment in the thousand hills. Every new entry promises to seriously cut prices for the customers.

Airtel promises drastic cuts so that it competitive attracts buyers side to side with mogul MTN and the blue penny-sensitive TIGO.

Airtel has invested a tune of $100 Million, and is well known as a good server in Kenya where it is a major competitor to the country’s main communication company Safaricom. The youngster and the Kenyan giant have arouse complaints back home for unreasonably increasing call monies, something that the entrant is likely to do over time in Kigali.

But there limits of Rwf 3 per second, Tigo is just below that and Rwandatel which has kind of stepped aside for the red-white labeled was also reasonably low.

 

It not yet known whether Airtel will just devise anything below Rwf 1 or 1.5 to attract the more lucrative low income earners-they make the biggest segment hungry for the mobile service.

Nobody knows if the company would make the place that has been left vacant by Rwandtel which was about to merge into the first permanent subscriber mobile company in Rwanda and EAC in general.

It is the first mobile company to have sold cheap latest phones to poor Rwandans helping connecting them to communication and linking them to the globe. MTN is a bit a class orients with abiding buyers.

As premier the Yellow Company has engaged in tremendous work and is recognized as a child in row and parent that has to do little bothering with young children. It brings in big music, sports and model stars, something that is fascinated by Rwanda’s youngster market with little or lightly paying jobs.

 

Airtel having serving vibrant Nairobi is expected to bring in something unique and attractive for the growing mobile market.

Rwandatel has faced buy in and buy outs, it served as Rwanda’s major telecommunications company before the Genocide and even after to the late 1990s; it was then bought by Terracom which ran in the market for a couple of years cited financial shortcomings and then quit, Rwandatel stepped in again as a Libyan merger with reasonable new changes-bringing its first mobile services, being a competitive bandwidth internet provider, giving out prizes at promotions-all before declining gradually and giving way to  Airtel.

But it remains and is expected to be the best internet services provider over time. Airtel is on their other half seen as another potential mobile services provider but little is known of its business projections in respect of the market standards and competition.

Skepticism is all about the fact that once MTN decides to do more cuts on prices Tigo and probably Airltel will crumble and the common client will incur the damages in their daily businesses and life. Lately mobile services buyers in all EAC member states Uganda, Kenya, Tanzania and Rwanda have been complaining of the unreasonable hikes of the daily price per minute/ second.

 

MTN serves in Kampala and Kigali and is evidently the price controlling factor for entrants and competitors. Tanzania’s Vodacom is potential the highest services provider and most complaint are against increasing prices with Safaricom which serves in Nairobi and Dar es Salaam and Tigo is the common man’s network.

Nevertheless, mobile and internet communication is the new expanding industry with the merging business community. It is this regard that probably one of EAC’s giants will merge failing companies and therefore saving the buying clients. Mobile services company Airtel is expected to be perceiving and promises price cuts in this respect.

This post has already been read 4868 times!

4 Comments

4 Comments

  1. Peace Umutoni

    September 28, 2011 at 7:07 PM

    When will you be opening your company operations? More interested in Customer relations role. Looking forward to hearing from you.

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