Safaricom’s voice market share declines as competitors gain

Written By: Margaret Kalekye/kna
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Safaricom’s share of the mobile voice market and subscriptions, dropped by 4.4 and 2.8 percentage points respectively, in the three months to December 2017, according to data from the Communications Authority of Kenya (CA).

The statistics sector report released today by CA, revealed that Safaricom’s share of the voice traffic had dropped to 72.5 per cent in the three months, to December 2017 down from 76.9 in the previous quarter.

Its market share by subscriptions dropped to 69.1 per cent, compared to 71.9 per cent recorded during the previous quarter.

The period of the drop coincides with the call by opposition National Super Alliance (NASA) to resist products certain of a number of companies, including Safaricom’s, which they accused of being a hindrance to attainment of democracy.

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Airtel’s market share by voice traffic grew by 4.6 percentage points to 22.2 per cent, up from17.4 per cent, while its market share by subscription rose to 17.2 per cent from 14.9 per cent recorded during the previous quarter.

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During the same period, Telkom Kenya’s market share by subscription also increased from 8.4 percent to 9.0 per cent, posting a growth of 0.6 percentage points. On the other hand, Finserve Africa limited lost by 0.2 percentage points to post a market share of 4.5 per cent.

“The total mobile voice traffic grew by 6.5 per cent to register 11.8 billion minutes from 11.0billion minutes recorded in the previous period,” said CA in the report

Safaricom’s  customers, however, increased their talk time, raising the minutes count to a total of8.55 billion minutes of local mobile voice traffic during the quarter under review up from 8.51 billion minutes registered in the previous quarter.

Airtel’s total traffic volume increased to 2.5 billion minutes up from 1.9 billion minutes recorded in the previous quarter.

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Telkom Kenya Limited, on the other hand, recorded a total of Sh. 608.6 million minutes in local mobile voice traffic up from Sh.589.8 million, minutes reported during the previous period.

Finserve Africa Limited recorded local mobile voice traffic of Sh. 37.5 million minutes during the quarter marking a decline of 7.2 per cent compared to Sh.40.4 million minutes registered in the preceding quarter. Its voice market share was recorded at 0.3 percent.

During the period under review CA report says, the Minutes of Use (MoU) per month per subscriber increased to 92.0 minutes up from 90.1 minutes recorded in the previous quarter.

As at 31st December 2017, the number of active mobile money transfer subscriptions and agents stood at Sh. 30.0 million and Sh. 198,234 Million, respectively.

A total of Sh. 607.4million mobile money transfer transactions valued at Sh. 1.763 trillion were carried. In addition, there were Sh. 308.6 million mobile commerce transactions valued at Ksh.1.1 trillion. The value of person-to-person transfers amounted to Ksh. 596.4 million.

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“The mobile money platform is expected to maintain an upward trend in the coming quarters due to the significant increase in the number of services offered on the platform and subsequently the increasing demand and popularity of the services,” CA says in the report.

Total data/Internet subscriptions stood at Sh. 33.3 million up from Sh. 30.8 million subscriptions reported in the previous quarter, representing an 8.0 per cent growth.

The number of mobile data/Internet subscriptions rose to registers Sh. 33.0 million, from Sh. 30.6million posted during the preceding quarter, posting a growth of 8.0 per cent.

During the quarter under review, a total of 4,589 cyber threats were detected by the National KE-CIRT/CC. The most prevalent was various forms of system misconfigurations that made computers/networks to be vulnerable and susceptible to cyber-attacks.

 

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