Abacus Wealth Management

Is Airtel the Next Big Thing?

Latest statistics from Communication Commission of Kenya (CCK) show that Airtel recorded the largest gains in new subscriptions. Airtel recorded a 9.6 percent growth over the period between April and June 2012 in comparison the the previous quarter bringing the total number of new subscription to 430,726. Yu Mobile gained 105,389 subscriptions; Telkom gained 23,394 subscriptions while Safaricom recorded 67,719 new subscriptions.

Data sourced from CCK Sector Statistics Report 4th Quarter 2012

Airtel Kenya has, in the past, embarked on an aggressive campaign to expand its subscriber base. Unlike the other emergency airtime top up services, Airtels’ Kopa Credo offers its subscribers broader options in regard to the amount one can borrow. Safaricoms’ Okoa Jahazi allows subscribers to borrow between airtime worth KES 10 to KES 100 while Kopa Credo offers the option of borrowing between KES 5 to KES 500 worth of airtime. In addition to this, Airtel scrapped off a 10 percent service charge it previously charged its subscribers who used Kopa Credo, in turn subscribers pay exactly what they borrowed without incurring additional fees.

Rates

On average it costs KES 3 to make on-net and off-net calls plus KES 1 to send SMS across all networks. Airtel further boosts of affordable  3G data rates plus it recently partnered with second parties to expand it’s Airtel Money agent network.

Though safaricom still has the largest market share the trend speaks for itself:

Data sourced from CCK

 

 

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