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in Broadband by
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Well Im sure by now you've all read what uMax is offering 20gigs PLUS equipment all for a 12month contract at just $75!!...And to think I was literally going to Yo on Monday morning to make the hefty $500 payment for the outdoor unit!..AMEN!!

So who do you think is gonna follow suit before they lose all the market share that they'll have to work twice as hard to get if they fail to act now! I say Econet Broadband (bundles only) is next maybe with a $50 for 10gig option... this will still afford them a lions share of the market as they do have unrivaled 3g coverage that can actually offer more than 1mbps (provided Zesa is on at the base station).

So who do you think is next?

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1 Answer

+1 vote
by Guru (30.2k points)
I seriously doubt that Econet will be the first to respond, and in actual fact it would not make business sense to them. Econet's strategy is centered on being a market leader in terms of numbers, market share, revenues,etc. All other players follow them and aim to become like them.

Now the position taken by Utande is interesting because it wants to establish itself as a cost leader (offering low prices to customers) in the market. And who are the other players that have that exact strategy? Africom, PowerTel and to some extent Telecel...

I think the next price cuts will come from the various ISPs/IAPs and it will eventually force the hand of Telecel who to date have been the only company that has made Econet budge in reducing prices.

So expect Africom, PowerTel and Telco to respond first. Africa Online and ZOL I don't even know their clientele but I suspect they have a niche in the market and they will only lower prices once customers start churning.

Econet obviously will make the final move. Employing a destructive pricing policy to drive out other players is not beyond them - say matching TelOne's entry level 10Gb for $30 or even smaller bundles 1Gb for $3???? Again, it's only hypothetical but a nightmare for other operators if this were to happen and a nightmare to Econet's profits and a nightmare for it's shareholders...

In all this I hopefully POTRAZ will be keeping a close eye, otherwise there is bound to be some casualties.
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