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
GTBank unveils Nigeria’s first virtual MasterCardGuaranty Trust Bank plc has reaffirmed its position as a leading provider of e-payment gateway solutions with the recent launch of its Virtual Prepaid MasterCard. Read More
Safaricom, MTN Rwanda partner on mobile money transfersIn a move aimed at deepening financial inclusion and boosting regional trade, Safaricom has partnered with MTN Rwanda to enable customers to make mobile money transactions between Kenya and Rwanda. Read More
TXTGhana restructures business portfolioTXTGhana has announced the reorganisation of its operations under the TXTGroup umbrella so as to better reflect and direct its international business segments. Read More
SIKA Mobile Money Transfer app soon in GhanaGhanaians will soon enjoy a low cost local and global money transfer service, directly from their mobile phones. Read More
Airtel Africa platform to support music artists across AfricaAirtel Africa has partnered with customer engagement software provider IMImobile to launch the new Airtel Artist Management System. Read More
Tigo expands digital customer care channels with AskTigo Skype CareTigo Ghana has rolled out yet another digital channel of communication for its customers, called AskTigo Skype Care. Read More
New KCC partners with Safaricom to streamline transactionsLeading dairy processor New KCC has partnered with Safaricom to roll out a Kshs. 55.7 million cashless solution, to enhance business efficiency and address risks associated with cash handling. Read More
Safaricom Spark Fund invests in SendyDelivery service Sendy has become the first start-up to benefit from the venture fund, which was launched by Safaricom in November last year. Read More
Motswana in contention for Orange African Social Venture Prize 2015Botswana’s Thabiso Mashaba’s ‘These Hands Social Enterprise’ Project has been shortlisted in the top 11 of Orange African Social Venture Prize 2015 projects. Read More
FEATURED STORYeCommerce in Africa urged to take advantage of mobile
The Executive Chairman of Alltel has urged operators of eCommerce in Ghana and Africa as a whole to take advantage of the current trend for Africans to trade online via their mobile handsets.
BEST READ NEWS
IN DEPTHNigeria needs $25b investment in broadband, says Wood
Telecoms executive Adrian Wood speaks to Kokumo Goodie about investment potential in Nigeria.