Price wars eat into Safaricom market-CCK report

Posted on June 7, 2011

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Quarterly statistics from the Communications Commission of Kenya between October and December 2010 are out.

The figures indicate a realignment of subscriber base for mobile telephone service operators with figures indicating Orange registering nearly one million users on its network.

Leading operator Safaricom seems to have taken a heat from competition with its subscription numbers falling in the period. The operator however still leads the pack in a market that is fiercely competitive in terms of pricing.

Below is a brief summary from the report by the CCK…

The quarter under review recorded 2,935,223 new mobile subscribers joining the four mobile operators in Kenya representing 12.0 per cent growth.

With a subscription market share of 69.9 percent, Safaricom Limited remained on top of the three other operators and registered 736,777 new subscribers in its network between October and December 2010.

Airtel with a market share of 15.2 percent is ranked second and had 814,708 new subscribers followed by Orange with a market share of 8.5 percent netting 972,928 new users within the quarter.

Essar Telecom with a market share of 6.4 percent added 125,868 new subscribers to its network. The significant growth could be attributed to massive promotion and marketing activities by all the mobile operators a factor that could have contributed to increased subscriptions.

During the quarter, there was a significant re-alignment of the market share. Telkom Orange and Airtel Networks gained 4.5 and 1.7 percentage points respectively of market share while Safaricom and Essar Telecom lost by 6.0 and 0.3 percentage points respectively.

In terms of absolute net additions, Telkom Orange registered the highest number during the quarter under review with 972,928 new subscriptions followed by Airtel with 814,708 and Safaricom with 736,777 respectively. Essar Telecom had the least additions of 125,868 subscriptions.

At the end of December 2010, the Kenya had a total of 24,968,891 mobile subscribers from 22,318,610 at the end of September 2010.

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