Operators are developing new revenue streams: 3G broadband; mobile banking; LTE trials and more

24 February 2012

...slow gradually over the coming years, and rapidly falling ARPU levels have driven one of the incumbents, Zain (which was subsequently acquired by Bharti Airtel), deeper into negative earnings, leaving only the market leader, Safaricom, with a net profit, although reduced. Financial performance has improved again in the 2011 financial year.

The operators are developing new revenue streams from third generation (3G) broadband and mobile banking services, and the leading operator has begun LTE trials. With market penetration rates in Kenya's broadband and traditional banking sector still very low, the mobile networks have an opportunity to relive the phenomenal growth rates seen in the voice sector in recent years.

This report contains an overview of Kenya's mobile, fixed-line, Internet and broadband market, its emerging digital economy, profiles of the major players in all market sectors, relevant statistics, analysis, and forecasts for the mobile and internet market to 2013 and 2016.

Market highlights:
> Decreasing ARPU under intense competition between four mobile networks;
> Improving financial performance despite price war;
> Strong growth in mobile data revenue from broadband and m-banking services;
> Landing of international fibre bandwidth has revolutionised the market;
> International internet bandwidth increases more than eleven-fold in one year;
> Competing national fibre backbones enabling converged voice, data and video services at lower prices;
> Profiles of major players in all market sectors;
> The rebirth of Telkom Kenya under the Orange brand;
> The emergence of new second-tier telcos;
> Fibre infrastructure sharing agreements;
> LTE trials;
> Forecasts for Kenya's mobile and internet market to 2013 and 2016.

Estimated market penetration rates in Kenya's telecoms sector - end 2012

(Source: BuddeComm based on various sources)

Companies covered in this report:
> Telkom Kenya (Orange, France Telecom);
> Safaricom (Vodafone);
> Bharti Airtel (formerly Zain, Celtel);
> Essar Telecom Kenya (Yu, formerly Econet);
> Kenya Data Networks (KDN);
> Jamii Telecom;
> Access Kenya;
> Kenya Power and Lighting Company (KPLC);
> Kenya Pipeline Corporation (KPC);
> SimbaNet;
> Africa Online (Telkom SA);
> Wananchi Online;
> MTN Business Kenya (UUNet);
> Swift Global;
> Internet Solutions Kenya (InterConnect);
> IGO Wireless, OneCom (Safaricom);
> Gilat Satellite Networks;
> Afsat Communications;
> Inmarsat;
> Indigo Telecom (Thuraya);
> Nation TV (NTV);
> KenTV.

Following the Kenyan market? Need more information on the movers-and-shakers in thus dynamic African market? For more on Kenya - Telecoms, Mobile, Broadband and Forecasts, click here.

Africa's largest mobile market expected to reach 100 million subscribers - read more, see 'Nigeria - Telecoms, Mobile, Broadband and Forecasts'.

< ...more... >

© 2012 Buddecom