Shanzai.com, 11 May 2010
Bharti has a lot of stumbling blocks to face before running its minute model successfully in Africa. Bharti’s model is based on increasing the usage by decreasing the call rates. This model has worked well in India where customers’ monthly usage is around 446 minutes. But in Africa it’s far less, at just 120 minutes. Bharti will have to compel their new customers to spend more … and this in countries where daily wages can be less than USD 2.
There is a huge difference in consumer behavior in India and Africa. While Indians have relished the opportunity to spend more time on their phones due to the decreased call rates, Africans may well respond differently. Full Story