Safaricom eyes high revenues from SMSes
VALUE ADDED SERVICES| Oct. 16, 2012, 8 p.m.
By Semaj Itosno, Nairobi, Kenya
Safaricom has started a campaign to boost its share of SMS revenues.
Kenya's leading telecoms operator on Tuesday launched a two-month promotion worth Sh85 million, in which 60,961 subscribers will win prizes including the top award of Sh10 million for one lucky subscriber and a reward of Sh2 million to four customers.
The promotion comes as data from the Communication Commission of Kenya indicated text message traffic dropped 3.6% to 986 million in the three months to June.
Safaricom’s chief executive officer, Bob Collymore, termed the promotion a reward scheme for its loyal subscribers, but analysts reckon the campaign is geared at increasing SMS traffic.
Under the promotion, subscribers will send an SMS to Safaricom that will cost Sh5 a text, which is higher than the normal charge of a shilling.
In the year to March, the SMS business contributed Sh7.8 billion, which is equivalent to three per cent of Safaricom’s revenues of Sh107 billion. It has a target to grow this business to Sh8.8 billion in the year to next March.
The voice business accounted for Sh68 billion, while M-Pesa brought in Sh16.9 billion with the data and handset businesses grossed Sh6.5 billion and Sh6.8 billion respectively.
The narrowing of call charges within the network to an average of Sh3 and the adoption of the use of Voice over Internet Protocol (VoiP) technologies such as Skype and Google talk which are cheaper has contributed to the drop of SMS usage especially at the international level.
“During the quarter, a total of 986 million Short Messaging Service (SMS) were sent compared to 1.0 billion SMS sent the previous quarter,” says CCK latest report.
MORE VALUE ADDED SERVICES NEWS
Safaricom launches M-PESA bill manager serviceSafaricom has launched a new service known as ‘Bill Manager’ that will enable customers to manage and pay bills via M-PESA all in a single transaction. Read More
BankOne empowers 250 Microfinance BanksOne of Africa’s leading Information Technology platforms for micro finance banks, BankOne, has announced the signing up of its 250th client. Read More
Orange Money in France to allow money transfers to three African countriesOrange Money is available in Metropolitan France to enable Orange mobile subscribers in France to transfer money via their mobile to other Orange Money customers in Côte d'Ivoire, Mali and Senegal. Read More
Dar es Salaam gets UberDar es Salaam has become the 475th city to join in Uber’s growing global network. Read More
Carrefour signs up for Lipa Na M-PESACarrefour, the world’s second largest hypermarket chain, has today become the first retailer in Kenya to fully integrate Safaricom’s payments service – Lipa Na M-PESA – paving the way for the retailer to fully adopt M-PESA as a payments channel in Kenya. Read More
Tigo Insurance pays 10,000th claimantTigo Ghana says it paid over GHS 6.2 million to policyholders since the inception of Tigo Insurance in 2010. This was revealed during the presentation of a payment to its 10,000th claimant. Read More
Uber signs MoU with Ghana’s Transport MinistryUber, a technology company that connects riders and drivers at the touch of a button, has signed a memorandum of understanding with Ghana’s Ministry of Transport. Read More
Safaricom set to rival Uber with LitteCabsIn a move aimed at giving Uber a run for its money, Safaricom is in the preliminary stages of introducing its own tax app - LittleCabs. Read More
Uber launches in AccraUber has officially launched its taxi app in Ghana’s capital city Accra. Read More
M-PESA customers to access money through Equity Bank ATMs countrywideEquity Bank has partnered with Safaricom to launch a new mobile money transfer service that will see M-PESA customers access money from the bank's automated teller machines throughout the country. Read More
FEATURED STORYGovernment should encourage youths in ICT early
Youths should be given more encouragement to develop their ICT skills, an 11-year-old app developer told Kokumo Goodie.
BEST READ NEWS
IN DEPTHIBM Opens First Cloud Data Centre in South Africa
IBM is opening a new IBM Cloud Data Centre in Johannesburg, South Africa. The new cloud center is the result of a close collaboration with Gijima and Vodacom and is designed to support cloud adoption and customer demand across the continent.