Kulula cellphone
Kulula.com says that it is in talks with potential partners to assist it in entering the South African cellphone market towards the end of 2007.
“We’re currently in discussions with various potential partners. “We will launch very soon ... before the end of the year. The time is right now. We’ve done extensive research, but we’re still deciding on which route to take. Consumers won’t be buying airtime like they currently do. There will be a different arrangement, different structures, and they’ll have to interact differently with service pro- viders. Prepaid cellphone users are currently getting no benefit in terms of rates offered and loyalty for buying top-up airtime. All that will change. We will significantly cut rates — by more than 50% — and focus on simplicity. The options out there now are too complex. The airline experience has shown us that even people with money want reduced rates. We’ve found that higher-income individuals usually subsidise phones for their kids and domestic staff ” Kulula Airline's Chief Executive Officer Gidon Novick.
The Kulula cellphone company is most likely to follow Virgin Mobile's model and become a mobile virtual network operators (MVNOs). Virgin Mobile South Africa entered South Africa's cellphone market in June 2006 through a 50:50 joint venture with Cell C.
