Tuesday, April 26, 2005

Are Safaricom and Celtel the new Telkom?

Cellphone companies are no longer new kids on the block in Africa; they are now showing some grey hairs:
- Even with two or three operators in a country market, there is surprisingly little price competition.
- Prices for local mobile calls are between five to ten times higher than their fixed line equivalents. You pay a premium for the advantages of mobility even though the cost of connecting a mobile subscriber is between a quarter to a third of its fixed line equivalent.

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