Last updated: 8 Sep 2009 Update History
Report Status: Archived
Report Pages: 154
Analyst: Stephen McNamara
Publication Overview
This annual report provides a comprehensive overview of trends and developments in
· Key statistics;
· Market and industry overviews;
· Regulatory environment and structural reform;
· Major players (fixed, mobile and broadband);
· Infrastructure development;
· Mobile voice and data markets, including 3G;
· ARPU trends;
· Internet development;
· Broadband, including 3G mobile;
· Convergence (voice/data, fixed/wireless/mobile).
Researcher:- Peter Lange
Current publication date:- September 2009 (8th Edition)
Next publication date:- September 2010
Executive Summary
The country’s incumbent fixed-line telco, Telkom
A price war has characterised
Subscriber growth is now forecast to slow over the coming years, and rapidly falling average revenue per user levels have driven one of the incumbents, Zain, deeper into negative earnings, leaving only the market leader, Safaricom, with a net profit, although reduced. Partly owned by Vodafone, Safaricom conducted a highly successful IPO in 2008.
The mobile operators are developing new revenue streams from 3G broadband services which are currently delivering up to 7.2Mb/s to subscribers. The other key area is mobile banking which has already surpassed the traditional banking sector in terms of users and carries 8% of the country’s
A simplified and converged licensing regime introduced in 2008 has lowered barriers to market entry and increased competition by allowing operators to offer any kind of service in a technology- and service-neutral regulatory framework. Companies that started out as ISPs, such as AccessKenya, Africa Online, Kenya Data Networks (
Zain
Year |
Monthly ARPU (US$) |
2006 |
7 |
2007 |
7 |
2008 |
6 |
(Source: BuddeComm based on company data)
· Forecasts for
· Decreasing ARPU under intense competition between four mobile networks;
· Growing new revenue streams from mobile broadband and m-banking services;
· Arrival of international fibre bandwidth in 2009 will revolutionise the market;
· Competing national fibre backbones to enable converged voice, data and video services and lower prices;
· Profiles of major players in all market sectors;
· The rebirth of Telkom
· The emergence of new second-tier telcos.
Data in this report is the latest available at the time of preparation and may not be for the current year.
The following notes provide some background to our scenario forecasting methodology:
· This report includes what we term scenario forecasts. By describing long-range scenarios we identify a band within which we expect market growth to occur. The associated text describes what we see as the most likely growth trend within this band.
· The projections shown in the tables in this report are based on our own historical information, as well as on telecommunication sector statistics from official and non-official, national and international sources. We assume a possible deviation of 15-20% around this data.
· All statistics for
For those needing high level strategic information and objective analysis on the telecommunications sector in
· One of the most competitive mobile markets in the region;
· Government policies affecting the telecoms industry;
· Market liberalisation and regulatory issues;
· Telecoms operators – privatisation, acquisitions, new licences;
· Internet and broadband development and growth;
· 3G mobile broadband rollouts and pricing;
· Average Revenue per User (ARPU);
· The m-banking services shaking up the traditional banking sector.
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