Safaricom eyes high revenues from SMSes
VALUE ADDED SERVICESBy BiztechAfrica - 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
M-PESA launches online paymentsM-PESA aims to revolutionise e-commerce in Kenya with the launch of its online payment service. Read More
Airtel partners with DSTV MobileAirtel Kenya and DStv Mobile have entered into a partnership that will allow Airtel subscribers to access DSTV mobile through their mobile phone network using Drifta mobile decoder for Android. Read More
Mobile smart wearable device shipments to approach 130m by 2018New findings from leading hi-tech analysts, Juniper Research, indicate that smart wearable device shipments including smart watches and glasses will approach 130 million by 2018, 10 times higher than estimated this year. Read More
EcoCash to offer lendingEcoCashSave account holders will soon be able to also borrow money just like ordinary bank account holders. Read More
Apps, data changing mobileMobile voice revenue is declining fast, while data use is surging, driven by instant messaging and apps, say new reports on the state of mobility in South Africa. Read More
Airtel, Zanaco launch’Cultiv8’ accountAirtel Money and Zambia National Commercial Bank have partnered to launch a low cost account that is primarily accessed through Airtel Money. Read More
Airtel to launch Opera Web Pass in AfricaOpera Software and Airtel have announced the launch of Opera Web Pass for customers in 17 countries across Africa. Read More
Clickatell aims to be Nigeria’s largest PINless prepaid airtime providerClickatell says it aims to strengthen its position as a leading mobile enablement provider in Nigeria and be the largest PINless airtime provider by the end of the fiscal year. Read More
Why mobile money uptake is low in AfricaGlesecke and Devrient expert Wolfgang Decker says the absence of a global regulatory standard, trust and low awareness are among the challenges facing mobile money services in Africa. Read More
Kenyan agriculture platform supports smallholder farmersAn innovative social enterprise firm empowering smallholder farmers in the country has developed a mobile messaging application in a bid to stem the rising pressure on the few extension and field officers who link up with farmers in rural areas. Read More
FEATURED STORYGaming app introduces investors to trading
A new virtual stock market app is equipping would-be investors with the skills they need to trade.
BEST READ NEWS
IN DEPTHCorporate cyber security threats of the year
91% of organisations polled suffered a cyber-attack at least once in the past year, says Kaspersky Lab in its security review of 2013.
COMPANY NEWSSamsung, 49M embark on consumer educational drive
Samsung Electronics South Africa has announced a national consumer education campaign in support of the 49M initiative, offering practical actions to save energy in daily life.MTN launches new positioning campaign for enterprise market
MTN Group today unveiled a new Pan-African brand positioning media campaign for MTN Business, its enterprise business unit.