Safaricom’s market share hit 71.2pc as Equitel loses – study

April 3, 2017
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Safaricom recorded the highest number of mobile subscriptions as at December 31, 2016 gaining 2.2 percentage points of the market share up from 69.0 per cent posted last quarter/FILE

, NAIROBI, Kenya, Apr 3 – East Africa’s largest telecom Safaricom Limited’s market share hit 71.2 percent in Kenya according to 2016 second quarter statistics report by the Communication Authority of Kenya (CA).

Safaricom recorded the highest number of mobile subscriptions as at December 31, 2016 gaining 2.2 percentage points of the market share up from 69.0 per cent posted last quarter.

Airtel Networks Limited nominally gained 0.1 percentage point market share to record 17.6 per cent during the period under review up from 17.5 per cent market share recorded in the previous quarter.

Telkom Kenya Limited lost 0.2 percentage points to reach 7.4 per cent market share from last quarter’s performance of 7.6 per cent.

Equity Group’s Equitel also lost 2.1 percentage points of market share during the quarter under review to stand at 3.8 per cent mainly attributed to the revision of data by the service provider during the quarter under review.

The market share for Sema Mobile Services remained below 0.0 per cent.

According to the report, Safaricom total number of subscriptions grew by 4.2 per cent to stand at 27.7 million subscriptions up from 26.6 million subscriptions registered during the previous quarter.

It gained by 4.1 per cent and 7.0 per cent pre-paid and post-paid mobile subscriptions respectively.

Airtel Networks Limited on the other hand, experienced an increase in the number of pre-paid subscriptions by 1.4 per cent to stand at 6.7 million subscriptions up from 6.6 million subscriptions posted during the last quarter.

However, its post-paid subscriptions declined by 6.6 per cent to record 137,664 subscriptions down from 147,359 subscriptions reported in the preceding quarter.

Its total mobile subscriptions stood at 6.8 million, which marked an increase of 1.2 per cent from the previous quarter.

“Telkom Kenya Limited experienced a marginal decline in the number of pre-paid subscriptions by 0.3 per cent to post 2.88 million subscriptions down from 2.89 million subscriptions recorded in the previous quarter. However, post-paid mobile subscriptions grew by 5.3 per cent to stand at 8,871 up from 8,424 subscriptions recorded in the previous quarter. The total subscriptions were registered at 2.8 million down from 2.9 million subscriptions reported during the previous quarter,” the report indicates.

Equitel registered a total of 1.4 million mobile subscriptions down from 2.2 million subscriptions posted in the previous quarter translating to a decline of 34.5 per cent. This was as a result of revision of data by the operator.

Sema Mobile Services stood at 270 subscriptions during the quarter under review up from 266 subscriptions recorded in the previous quarter.

On voice traffic, Safaricom Limited local mobile voice traffic gained 4.3 percentage points in market share to register 80.6 per cent market share up from last quarter’s 76.3 per cent while Airtel Networks Limited’s mobile voice traffic declined by a slight margin of 1.1 per cent during the quarter under review to post a total of 1.46 billion minutes down from 1.48 billion minutes.

Telkom Kenya Limited’s total mobile voice traffic declined substantially to stand at 590 million minutes during the period under review down from 1.0 billion minutes posted during the previous period.

Similarly, Equitel also lost its mobile voice market share to post a total of 46.5 million minutes down from 49.5 million minutes registered in the previous quarter as the market share fell by 0.1 percentage points to stand at 0.4 per cent during the period under review.

On the mobile data market share, Safaricom Limited maintained the highest market share during the quarter under review, growing by 4.3 percentage points to stand at 67.5 per cent up from 63.2 per cent posted in the previous quarter.

Telkom Kenya Limited slightly gained in its mobile data market share to attain 7.1 per cent whereas Airtel Networks Limited and Equitel lost its market share to post 19.7 per cent and 5.6 per cent, respectively.

Sema Mobile Services still maintained its market share below 0.0 per cent.

“The quarter under review witnessed mixed growth in different sub-sectors in the industry. Mobile telephony segment witnessed an upward trend as well as the local mobile and SMS traffic. This could be as attributed to the busy festive season where operators launched various promotions and special offers to entice their customers. The growth is expected to continue as the network coverage is expanded to cover the remote areas, innovative solutions are deployed, competition drives down the cost of access and feature phones with Internet access capability becomes more widely available in Kenya,” the report highlights.

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