The planned Airtel-Telkom merger is likely to trigger a tariff war in the telecommunications sector as the new entity is likely to opt for a low-cost pricing strategy to attract a larger customer base.
This is according to research firm Sterling Capital which in its latest market report points to a looming price war between Airtel-Telkom and Safaricom #ticker:SCOM as the former could turn to leveraging its new customer base to offset thinner margins by the two firms when they operated as separate entities.
