Research and Markets has announced the addition of the "Kenya Telecommunications Report Q1 2011" report to its offerings.
In a release, Research and Markets noted that report highlights include:
The Kenya Telecommunications Report provides industry professionals and strategists, corporate analysts, telecommunication associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Kenya's telecommunications industry.
BMI's Q111 update of the Kenya Telecommunications report contains analysis of the country's mobile, fixed-line and internet sectors using latest market data released by the telecoms regulator, the CCK, and service providers. It also contains our latest forecasts for the three sub-sectors, which have been extended to 2015 starting from this edition of our report.
There were a series of events in the first nine months of 2010 in the Kenyan mobile market, most of which could have long-term implications for the mobile market in particular and the entire telecoms sector in general. Perhaps the most notable events were the introduction of mandatory registration for prepaid SIM cards in June 2010 and a sharp cut in interconnection rates in August 2010. The former, which expired on September 15 2010, reportedly resulted in as many as 7mn (about 28 percent of the total market) unregistered lines. The government has yet to decide whether to extend the registration period or disconnect the unregistered lines. The latter started a price war in voice and SMS services, leading to very cheap prices in the market. While the disconnection of inactive SIMs could affect current subscriber numbers and, by implication, forecast growth, BMI expect this to be counterbalanced by rapid subscriber uptake as mobile phone use becomes more affordable for students and lower income users.
At the end of June 2010 BMI estimates there 20.165mn mobile phone subscribers in Kenya. Market leader Safaricom remains dominant with a market share of 79.1 percent, while alternative operators Bharti Airtel's Zain Kenya, Essar Telekom Kenya (Yu) and Orange Kenya had 11.2 percent, 7.4 percent and 2.3 percent market shares respectively. Zain was the first to slash tariffs in August 2010 in a move believed to be targeted at eroding Safaricom's market share. But with all four operators adopting a similar value-led strategy, BMI expect that long-term competitiveness will depend on operators' network quality and coverage, ability to provide market-friendly data and value-added services, and the financial muscle to maintain low margins for an extended period.
In contrast to the mobile sector, Kenya's fixed-line market suffered significant losses in the first quarter of 2010, driven by losses in the fixed wireless segment. In October 2010, Telkom Kenya reacted to those losses and price cuts in the mobile segment, by slashing tariffs for fixed wireless calls on its network by up to 71.4 percent. In future BMI expect growth in the sector to be driven by corporate users.
BMI believes data services will be competitive arena for mobile operators aiming to sustain or increase revenues in the on-going price war in the mobile voice market. Meanwhile, the launch of the EASSy submarine cable system in August 2010, in addition to the live TEAMS and SEACOM systems, increased the capacity of international internet bandwidth. BMI expect the combination of these factors to increase the competition and drive down retail prices of broadband services in Kenya.
Companies Mentioned:
-Cisco Systems
-Safaricom
-Telkom Kenya
Report information:
http://www.researchandmarkets.com/research/f5ed46/kenya_telecommunic
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