Kenya’s Telecom Sector – stakes just got higher

Telecoms

Mobile data continues to dominate Kenya's market with the number of subscriptions registered at 18.6 million up from 16.3 million, representing a 14.3% growth. This is according to the Jan-March 2015 Quarterly Sector Statistics Report released by the Communication Authority of Kenya.

According to the Report, the number of mobile broadband subscriptions stood at 5.01 million representing growth of 23.1% as fixed and wireless broadband subscriptions increased by 11.1% to stand at 100,000. The number of fixed and wireless broadband subscriptions, as categorised by advertised speeds, recorded 57,742 subscriptions with highest speeds of 2Mbps being recorded during the period under review.

Statistics reflect that the East African country's data market continues to experience growth. An excerpt from the Report states, ""The number of subscriptions increased by 14.3 percent to stand at 18.8 million up from 16.3 million posted during the last quarter. In relation to the same period of the previous year, growth of 1.3 percent was recorded."

Mobile data continued to dominate the market with the number of subscriptions registered at 18.6 million up from 16.3 million, representing a 14.3% growth.
Terrestrial wireless data subscriptions is said to have declined by 7.9% to register 16,148 subscriptions, down from 17,537 recorded during the last quarter. "The decline has been attributed to substitution of connection to other access modes such as Fibre optic. Compared to the same period of the previous year, a minimal growth of 0.7 percent was recorded," the report said.

Satellite subscriptions registered increased growth of 17.4% to stand at 836 up from 712 registered during the last quarter. The growth in fibre optic subscriptions has remained steady over the period with the quarter under review registering 87,838 subscriptions up from 81,243 recorded during the last quarter representing an increase of 8.1%. The Report also reflected the standings of competitors within the telecommunications services space, with the Wananchi Group, home of entertainment and communication brand Zuku, leading within the fixed internet sector with 46.8% market share.

The firm operates a triple-play platform in which broadband, pay multi-channel television and voice telephony are offered through one cable. Liquid Telecom recorded growth in the number of subscriptions and emerged second with a market share of 15.3%, while Telkom Kenya ranked third at 10.1% as its subscriptions increased marginally to 12,083. Wananchi Group's Zuku Fibre cable network is currently available in Nairobi and Mombasa, and, according to the company, customers receive residential speeds of up to 50Mbps.

In February the company's CEO Richard Alden spoke of the intention to leverage the US$130 million capital injection received in 2014 to expand and extend services into key regions.

Source: ITWeb Africa, 6th August 2015