Kenya - Telecoms, Mobile, Broadband and Digital Media - Statistics and Analyses

Publication Overview

This report provides a comprehensive overview of trends and developments in Kenya’s telecommunications market. The report analyses the mobile, internet, broadband, digital TV and converging media sectors. Subjects include:

  • Market and industry analyses, trends and developments;
  • Facts, figures and statistics;
  • Industry and regulatory issues;
  • Infrastructure developments;
  • Major players, revenue, subscribers, ARPU, MoU;
  • Internet, VoIP, videostreaming;
  • Mobile voice and data markets;
  • Broadband (FttP, DSL, cable, wireless);
  • Convergence and Digital Media;
  • Mobile subscriber forecasts;
  • Mobile and broadband market forecasts for selective years to 2022.
  • Government policies affecting the telecoms industry;
  • Market liberalisation and industry issues;
  • Telecoms operators – privatisation, IPOs, acquisitions, new licences;
  • Mobile technologies (GSM; 3G, HSPA, LTE).

Researcher:- Henry Lancaster
Current publication date:- April 2017 (16th Edition)

Executive Summary

Kenya’s telecom regulator looks closely at Safaricom’s market dominance

Kenya’s telecommunications market continues to undergo considerable changes resulting from increased competition, improved international connectivity and rapid developments in the mobile market. The wholesale price for broadband has fallen dramatically in recent, benefitting consumers in both the fixed and mobile segments. The incumbent fixed-line telco, Telkom Kenya, which was managed by Orange Group from 2007 until it was sold to Helios in November 2015, has struggled to make headway in the competitive market.

The broadband market has been transformed by a combination of increased investments in network upgrades among the key providers. A number of major FttP rollouts have been undertaken, which have pushed fast broadband connectivity to a greater number of subscribers. Most broadband subscribers remain on mobile networks. These are being migrated from the dominant 3G segment to LTE as this technology is built out by operators. A range of services including video streaming, e-commerce, e-learning and e-government are evolving rapidly on the back of this improved infrastructure.

Kenya’s mobile market has continued to grow steadily, supported by a mobile subscriber base of about 39 8 million by early 2017. Some market consolidation occurred following the acquisition by Airtel and Safaricom of Essar Telecom’s yuMobile business. While all network operators have invested in mobile technologies and infrastructure upgrades to support mobile data services, competition has nevertheless presented challenges to their profitability, with uneven revenue growth reported in recent years. While Orange Group was the principal casualty of competition, leading it to sell its stake in Telkom Kenya, Safaricom has seen very strong growth on the back of its popular M-PESA payment platform. This market dominance, however, has encouraged the government to consider recommendations from a report commissioned by the regulator in late 2016 that Safaricom split –off its M-PESA business.

To encourage the development of LTE services the government has pursued an open-access approach. Disputes centered on licence fees delayed the launch of LTE services by MNOs, though they continued to invest in infrastructure and technology upgrades using trial licences.

A number of MVNO licences awarded since 2014 have added to the competitive mix, with Equitel establishing a market share of about 3.8% by early 2017.

Key developments:

  • Government commits KES300 to its free Wi-Fi project;
  • Government cuts back on scale of second phase national broadband network project;
  • Universal Service Fund extends mobile coverage to underserved northern regions;
  • Orange Group sells its holding in Telkom Kenya to Helios;
  • Airtel begins trialling LTE;
  • Treasury launches its M-Akiba platform to buy and sell government bonds;
  • Orange Money platform to be revamped and relaunched by end-2017;
  • Safaricom contracts Nokia Networks to develop LTE-A network;
  • One Network Area initiative expands to include mobile data and mobile money services;
  • Regulator reviews framework for QoS surveys;
  • Nairobi County to connect all 85 public secondary schools with Wi-Fi;
  • Report update includes the regulator’s market data to December 2016, operator data to Q4 2016, recent market developments.

Companies mentioned in this report:

Telkom Kenya (Orange Kenya), Kenya Data Networks (KDN), Jamii Telecom, SimbaNet, Africa Online, Access Kenya (Dimension Data), Wananchi Online, MTN Business Kenya (UUNet), Swift Global, Internet Solutions Kenya (InterConnect), Safaricom (IGO Wireless, OneCom, Vodafone), Gilat Satellite Networks, Afsat Communications, Inmarsat, Indigo Telecom (Thuraya), Nation TV (NTV), KenTV, Liquid Telecom, Kenya Data Networks (KDN), Kenya Power and Lighting Company (KPLC), Kenya Pipeline Corporation (KPC), Bharti Airtel, MTN, Essar Telecom Kenya (yuMobile, formerly Econet), Huawei Technologies, ZTE, Alcatel-Lucent, Nokia Networks.

Table of Contents

  • 1. Key statistics
    • 1.1 Country overview
  • 2. Telecommunications market
    • 2.1 Overview of Kenya’s telecom market
  • 3. Regulatory Environment
    • 3.1 Kenya Communications Act 1998
    • 3.2 Regulatory authority
    • 3.3 Revised Telecommunications Market Structure 2004
    • 3.4 Kenya Communications Amendment Act 2009
    • 3.5 Licence fees
    • 3.6 Universal Service Fund (USF)
    • 3.7 Tariff regulation
    • 3.8 Interconnection
    • 3.9 Number portability
    • 3.10 Spectrum auctions
    • 3.11 Foreign ownership
    • 3.12 Dominant market player designation
    • 3.13 Telecom sector liberalisation
    • 3.14 Privatisation of Telkom
      • 3.14.1 First attempt fails in 2001
      • 3.14.2 Pre-privatisation financial position
      • 3.14.3 Privatisation - 2007
    • 3.15 Regional telecom licences
    • 3.16 Second national operator (SNO) licensing
      • 3.16.1 First attempt fails in 2004
      • 3.16.2 Second attempt fails in 2007
    • 3.17 International gateway licences
    • 3.18 VoIP telephony
    • 3.19 Unified licensing regime
  • 4. Fixed Network Operators
    • 4.1 Telkom Kenya
      • 4.1.1 Wireless Local Loop (WLL)
      • 4.1.2 Tariffs
    • 4.2 Fixed-wireless operators
    • 4.3 Liquid Telecom Kenya (KDN)
    • 4.4 Jamii Telecom
    • 4.5 AccessKenya
  • 5. Telecommunications Infrastructure
    • 5.1 Overview of the national telecom network
    • 5.2 National Optic Fibre Backbone Infrastructure (NOFBI)
    • 5.3 Liquid Telecom
    • 5.4 Kenya Power and Lighting Company (KPLC)
    • 5.5 Kenya Pipeline Corporation (KPC)
    • 5.6 Safaricom
    • 5.7 MTN
    • 5.8 Fibre infrastructure sharing
    • 5.9 Data centres
    • 5.10 International infrastructure
    • 5.11 Satellite
    • 5.12 Terrestrial fibre
    • 5.13 Submarine fibre
      • 5.13.1 EASSy
      • 5.13.2 TEAMS
      • 5.13.3 SeaCom
      • 5.13.4 LION-2
      • 5.13.5 DARE
      • 5.13.6 Other projects
  • 6. Broadband Market
    • 6.1 Introduction and statistical overview
    • 6.2 Market analysis
    • 6.3 Internet backbone infrastructure
      • 6.3.1 Telkom Kenya, JamboNet
      • 6.3.2 Alternative data carriers
      • 6.3.3 Public data network operators (PDNO)
    • 6.4 Broadband statistics
    • 6.5 Forecasts – broadband subscribers – 2016; 2018; 2021
    • 6.6 Public internet access locations
      • 6.6.1 Digital Villages
      • 6.6.2 Internet for Schools
    • 6.7 Digital Subscriber Line (DSL) networks
    • 6.8 Internet Exchange Points (IXP)
    • 6.9 Kenya Network Information Centre (KENIC)
    • 6.10 National broadband strategy
    • 6.11 TV white space
    • 6.12 ISP market
      • 6.12.1 Africa Online Kenya
      • 6.12.2 AccessKenya (Dimension Data)
      • 6.12.3 Wananchi Online
      • 6.12.4 MTN Business Kenya (formerly UUNet)
      • 6.12.5 Swift Global (KDN)
      • 6.12.6 InterConnect, Internet Solutions Kenya
      • 6.12.7 Telkom Kenya
    • 6.13 Fibre-to-the-Premises (FttP) networks
    • 6.14 Other fixed broadband services
    • 6.15 Wireless broadband
      • 6.15.1 Wi-Fi
      • 6.15.2 WiMAX
    • 6.16 Broadband via satellite
    • 6.17 Leased lines
  • 7. Digital Economy
    • 7.1 E-learning
      • 7.1.1 National research and education network (NREN)
    • 7.2 E-commerce
    • 7.3 E-government
  • 8. Digital Media
    • 8.1 Communications: VoIP
      • 8.1.1 New VoIP guidelines
      • 8.1.2 VoIP licences
    • 8.2 Video streaming
    • 8.3 Digital TV
  • 9. Mobile Communications
    • 9.1 Overview of Kenya’s mobile market
      • 9.1.1 General statistics
      • 9.1.2 Mobile voice
      • 9.1.3 Mobile data
      • 9.1.4 Mobile broadband
      • 9.1.5 Forecasts - mobile subscribers – 2018; 2020; 2022
    • 9.2 Regulatory issues
      • 9.2.1 Roaming
      • 9.2.2 Mobile Termination Rates (MTRs)
      • 9.2.3 International gateways
      • 9.2.4 Spectrum
      • 9.2.5 Mobile Number Portability (MNP)
      • 9.2.6 Network sharing
      • 9.2.7 Quality of Service (QoS) control
      • 9.2.8 SIM card registration
      • 9.2.9 Taxes
      • 9.2.10 Tariff regulation
    • 9.3 Mobile infrastructure
      • 9.3.1 Analogue networks
      • 9.3.2 Digital networks
      • 9.3.3 Other infrastructure developments
      • 9.3.4 Satellite mobile
    • 9.4 Major mobile operators
      • 9.4.1 Mobile market shares
      • 9.4.2 Safaricom
      • 9.4.3 Bharti Airtel Kenya (formerly Zain, Celtel, KenCell)
      • 9.4.4 Essar Telecom Kenya (yuMobile, formerly Econet)
      • 9.4.5 Telkom Kenya (Orange Kenya)
      • 9.4.6 Mobile Virtual Network Operators (MVNOs)
    • 9.5 Mobile content and applications
      • 9.5.1 Mobile money transfer, m-banking
      • 9.5.2 PesaLink
      • 9.5.3 Mobile TV
      • 9.5.4 M-medicine
      • 9.5.5 Satellite mobile
    • 9.6 Handsets
    • Table 1 – Country statistics Kenya – 2016 (e)
    • Table 2 – Fixed-line statistics – 2016
    • Table 3 – Internet provider statistics – 2017
    • Table 4 – Internet user statistics – 2016
    • Table 5 – Mobile statistics – 2016
    • Table 6 – National telecommunications authority
    • Table 7 – Telecom sector revenue in Kenya – 2007 - 2016
    • Table 8 – Telkom fixed-line subscribers – 2008 - 2016
    • Table 9 – Fixed-wireless subscriptions in Kenya – 2007 - 2016
    • Table 10 – Historic - Fixed lines in service and teledensity in Kenya – 1999 - 2009
    • Table 11 – Fixed lines in service and teledensity in Kenya – 2010 - 2018
    • Table 12 – International bandwidth in Kenya – 2000 - 2016
    • Table 13 – International bandwidth capacity by platform – 2013 - 2016
    • Table 14 – International bandwidth used – 2013 - 2016
    • Table 15 – Historic - Internet users and penetration rate in Kenya – 1999 - 2009
    • Table 16 – Internet users and penetration rate in Kenya – 2010 - 2016
    • Table 17 – Internet subscriptions – 2010 - 2018
    • Table 18 – Wireless internet subscriptions by access technology – 2010 - 2016
    • Table 19 – Fixed-line broadband subscriptions by access technology – 2010 – 2016
    • Table 20 – Broadband subscriptions – 2014 – 2018
    • Table 21 – Internet services revenue and investments – 2009 - 2015
    • Table 22 – Forecast fixed broadband subscribers – 2018; 2020; 2022
    • Table 23 – Fibre broadband subscribers – 2011 - 2016
    • Table 24 – Prepaid and contract mobile subscribers – 2014- 2016
    • Table 25 – Mobile services revenue and investments – 2008- 2015
    • Table 26 –Mobile traffic share by operator – 2014 - 2016
    • Table 27 –Mobile subscriber market share by operator – 2012 - 2016
    • Table 28 – Historic - Mobile subscribers and penetration rate in Kenya – 1999 - 2009
    • Table 29 – Mobile subscribers and penetration rate in Kenya – 2010 - 2018
    • Table 30 – SMS traffic – 2012 - 2016
    • Table 31 – MMS traffic – 2012 - 2015
    • Table 32 – Mobile internet subscribers by provider – 2013 - 2015
    • Table 33 – Mobile internet market share by provider – 2014 - 2016
    • Table 34 – Active mobile broadband subscribers – 2010 - 2015
    • Table 35 – Mobile data subscribers – 2015 - 2016
    • Table 36 – Forecast mobile subscribers – 2018; 2020; 2022
    • Table 37 – Mobile number portings – 2013- 2016
    • Table 38 – 2G Mobile base stations by operator – 2012- 2016
    • Table 39 – 3G Mobile base stations by operator – 2012- 2016
    • Table 40 – Market share of subscribers by operator – 2010 – 2016
    • Table 41 – Safaricom subscribers – 2010 - 2016
    • Table 42 – Safaricom revenue – 2011 - 2017
    • Table 43 – Safaricom revenue by sector – 2010 - 2017
    • Table 44 – Safaricom - proportion of revenue by sector – 2014 - 2017
    • Table 45 – Safaricom base stations by technology – 2013 - 2016
    • Table 46 – Airtel Kenya subscribers – 2010 - 2016
    • Table 47 – Historic - Essar Telecom subscribers – 2010 - 2014
    • Table 48 – Orange Kenya revenue – 2010 - 2014
    • Table 49 – Orange Kenya mobile subscribers – 2011 - 2016
    • Table 50 – Equitel mobile subscribers – 2014 - 2016
    • Table 51 – Mobile money transfer statistics – 2011 - 2016
    • Table 52 – Safaricom - M-PESA revenue – 2008 - 2017
    • Table 53 – Safaricom – active M-PESA customers – 2012 - 2016
    • Table 54 – Safaricom –M-PESA transactions value by type – 2011 - 2017
    • Chart 1 - Fixed lines in service and teledensity – 2005 - 2018
    • Chart 2 - Internet users and penetration rate in Kenya – 2005 - 2016
    • Chart 3 - Mobile subscribers and penetration rate in Kenya – 2005 – 2018
    • Chart 4 – Market share of subscribers by operator – 2010 – 2016
    • Exhibit 1 – Definitions - video streaming and IPTV
    • Exhibit 2 – Job offers by SMS
    • Exhibit 3 – Texting elephants

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