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Rise in web calls hit Kenya’s cellular community revenues

by Neo Africa News
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  • In Kenya, cell phone customers are choosing web calls and texting as a measure to chop on prices.
  • Final 12 months, prospects spent extra time on a single on-net name averaging 2.8 minutes.
  • Safaricom prospects spent extra on off-net calls, averaging at 1.4 minutes whereas Airtel accounted for 33.3% of voice and 10.3% of SMS visitors in Kenya. 

An growing variety of cell phone customers in Kenya desire utilizing web calls and texting as a measure to chop communication prices, a 2023 report by the Communications Authority exhibits. This shift is steadily eroding each voice and textual content revenues for cellular community suppliers in Kenya.

The report exhibits that the minutes of use monthly per subscription decreased to 120.4 minutes within the three months to December 2023 in comparison with the next 123.4 minutes throughout the earlier quarter.

Equally, brief messages despatched monthly per subscription declined marginally to 65.4 from 65.8 messages. The report additionally attributes this to normalizing utilization patterns following the busy festive seasons in quarters two and three.

The common minutes per on-net and off-net calls remained at 1.8 and 1.2, respectively. The evaluation exhibits that Nairobi Securities Alternate-listed Safaricom PLC continued to dominate each the voice and SMS markets, accounting for 66.1 and 89.6 per cent of voice and SMS respectively. Rival Airtel accounted for 33.3 per cent of voice and 10.3 per cent of SMS visitors within the nation throughout the overview interval.

Based on the report, Airtel Networks Ltd prospects spent extra time on a single on-net name averaging 2.8 minutes whereas Safaricom prospects spent extra on off-net calls, averaging at 1.4 minutes.

Rise in Web calls and texting

Final 12 months, cellular providers generated Sh384.3 billion in income, marking a 13.2 per cent improve from 2022. The evaluation exhibits {that a} greater variety of cell phone customers within the nation desire web calls and texting to chop communication prices, coming at a time when incomes have been thinning amid rising price of residing.

This tremendously impacted voice and textual content revenues for cellular community suppliers within the nation, with the minutes of use monthly per subscription dropping to 120.4 minutes in This fall, 2023 in contrast to123.4 minutes the earlier quarter.

Learn additionally: Digital Fraud Makes an attempt: Kenyan Shoppers Efficiently Keep away from 72 per cent of Digital Fraud

Common minutes per name

Equally, brief messages despatched monthly per subscription declined to 65.4 from 65.8 messages. The report additionally attributes this to normalizing utilization patterns following the busy festive seasons in quarters two and three.

The common minutes per on-net and off-net calls remained at 1.8 and 1.2, respectively as telco big Safaricom continued to dominate each the voice and SMS markets, accounting for 66.1 and 89.6 per cent of voice and SMS respectively.

Airtel accounted for 33.3 per cent of voice and 10.3 per cent of SMS visitors within the nation throughout the overview interval. Based on the report, Airtel Networks Restricted prospects spent extra time on a single on-net name averaging 2.8 minutes whereas Safaricom customers spent extra on off-net name, averaging at 1.4 minutes.

“In 2023, cellular providers generated Sh384.3 billion in income, marking a 13.2 p.c improve from 2022. On the identical pattern, funding within the cellular sub-sector grew by 20.6 p.c, to report Sh70.9 billion in 2023.” the CA report reads partly.

The overall home mounted community visitors stood at 20.2 million minutes throughout the overview interval. Total, the visitors for FY2023/24 declined by 11.3 per cent to 86.2 million minutes from 97.1 million reported within the earlier 12 months.

Worldwide incoming and outgoing mounted voice visitors declined by 4.8 and 4.5 per cent to report six million and 996,035 voice visitors, respectively throughout the referenced interval.

Web subscriptions skilled progress pushed by growing reliance on digital platforms for work, schooling, healthcare, and leisure, together with engaging tariffs and particular affords from service suppliers.

The overall mounted Web subscriptions grew by 7.4 per cent to succeed in 1.5 million. Satellite tv for pc subscriptions recorded a major progress of 73.1 p.c in quarter 4 and a 1,955.3 p.c progress within the monetary 12 months.

This progress is attributed to the licensing and subsequent launch of Elon Musk’s Starlink Web Providers Kenya earlier within the monetary 12 months. Web prospects had been primarily subscribed to information speeds between 2Mbps and 10Mbps.

Satellite tv for pc subscriptions maintained an upward pattern following the launch of Starlink providers throughout the 12 months, with 96.9 per cent of satellite tv for pc prospects subscribed to speeds between 100Mbps and 1Gbps.

Safaricom reported the most important market share of 36.4 per cent adopted by Jamii Telecommunications Ltd and Wananchi Group at 24.0 and 17.5 per cent respectively. Starlink Web Providers Kenya loved a market share of 0.5 per cent as of June 30 2024.

On the identical pattern, funding within the cellular sub-sector grew by 20.6 per cent, to report Sh70.9 billion in 2023. The overall home mounted community visitors stood at 20.2 million minutes throughout the overview interval. The visitors for FY 2023/24 declined by 11.3 per cent to submit 86.2 million minutes from 97.1 million reported within the earlier 12 months.

Worldwide incoming and outgoing mounted voice visitors declined by 4.8 and 4.5 per cent to report six million and 996,035 voice visitors, respectively throughout the referenced interval. Web subscriptions skilled progress pushed by growing reliance on digital platforms for work, schooling, healthcare, and leisure, together with engaging tariffs and particular affords from service suppliers.

The overall mounted Web subscriptions grew by 7.4 p.c to succeed in 1.5 million. Satellite tv for pc subscriptions recorded a major progress of 73.1 p.c in quarter 4 and a 1,955.3 p.c progress within the monetary 12 months.

Learn additionally: Communications Authority of Kenya wants $820M for digital superhighway targets

Starlink Web Providers Kenya

This progress is attributed to the licensing and subsequent launch of Starlink Web Providers Kenya earlier within the monetary 12 months. Web prospects had been primarily subscribed to information speeds between 2Mbps and 10Mbps.

Satellite tv for pc subscriptions maintained an upward pattern following the launch of Starlink providers throughout the 12 months, with 96.9 per cent of satellite tv for pc prospects subscribed to speeds between 100Mbps and 1Gbps.





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