Safaricom follows Telkom Kenya in offering bundled services
Safaricom is adopting a new strategy offering clients all their services in a single bundle at a discount as opposed to subscribing for them one by one. The strategy, which has also been adopted by Telkom Kenya, involves offering Internet broadband, video and voice with its target being corporate and mid-sized firms.
“The converged services is part of our ongoing strategy to increase our revenues on top of our traditional voice market and also offer platforms to our clients that can help them to reduce costs and increase efficiency” said Michael Joseph, the CEO of Safaricom. Joseph said the integrated service is expected to increase the share of revenues coming from Internet business from 13 per cent to 20 per cent.
By adopting this strategy, Safaricom is taking the battle for this market segment close to Telkom Kenya, which is also pursuing the same strategy by focusing on the converged services other than the voice market. Currently, it is charging the lowest tariffs on calls made within its network. Orange charges Sh1 per minute compared to Sh3 per minute by Zain on-net on selected calls and Sh8 per minute by Safaricom. Under its converged services, Telkom Kenya has Wimax frequencies capacity, giving it advantage over competitors.
“ With limited frequency capacity of seven megahertz we have, we can only look at between 10 - 15 per cent of the market share of offering fixed Internet using Wimax technology,” said Joseph. However, he noted that the company is soon putting into use another frequency that should boost their service delivery.