Safaricom eyes high revenues from SMSes

VALUE ADDED SERVICES

|
Image: By BiztechAfrica
Safaricom eyes high revenues from SMSes

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. 



Share the News

Get Daily Newsletter

Search News

comments powered by Disqus

MORE VALUE ADDED SERVICES NEWS

EFInA lifts Nigeria mobile banking with $1.5m

Enhancing Financial Innovation & Access (EFInA) boosted the mobile money sector by splashing $1.5 million or about N421.5 million from its Innovation Grant on Diamond Bank’s Diamond Y’ello Account (DYA), a mobile banking platform which was built on MTN Xaas platform.  Read More

KCB M-PESA loan disbursements cross KSh10B mark

Revolutionary mobile-based bank account KCB M-PESA has advanced KSh10.3 billion in loans to its customers since inception about two years ago, boosting access to credit in Kenya. Read More

Airtel Money, WAEC enable candidates to check their results online

Airtel Money is enabling the purchase of the West African Examination Council (WAEC) results checker pins on its platform.  Read More

Airtel Money Card is now back, with online payments

Airtel Kenya has announced the return of its Airtel Money Card, enabling card holders the convenience of shopping, online payments and easy access to funds 24 hours a day.  Read More

Daystar University pioneers smartphone-based degree programmes

Daystar University has announced a strategic partnership with OneUni to launch Africa’s first smartphone-based degree programmes, the first of which is a Bachelor’s of Education for existing and aspiring teachers. Read More

MTN Ghana stimulates discussion on cashless society

As part of its 2016 Mobile Money Month celebration in the country, MTN Ghana has revisited the discussion on a cashless society and the need for stakeholders to take a critical look at its benefits again. Read More

WorldRemit calls for urgent restoration of money transfers to Nigeria

Hundreds of global remittance companies have been forced to cease transfers to Nigeria, says WorldRemit. Read More

Mobile Money – the paradox of costly convenience

The convenience of mobile money is being offset by the increased risk of fraud, report Kampala residents. Read More

Uber Kenya faces looming drivers’ strike

Kenyan drivers for digital taxi service Uber have threatened to embark on a strike from today over fare price cuts. Read More

Uber offers cashless payments in Accra through SMSGH

Uber, the innovative app that connects riders with drivers, has revealed to Biztechafrica that it has partnered with SMSGH to provide mobile payments to the Greater Accra Metropolitan Area (GAMA).  Read More

PRESS OFFICES

Sage EnterpriseSAP AfricaTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4AfrikaNetworks UnlimitedArbor NetworksEricssonTigo Ghana

FEATURED STORY

Financial services sees AI as both opportunity and threatFinancial services sees AI as both opportunity and threat

Banking is already a key area where technology is having an impact throughout Africa, and a new survey assesses the impact artificial intelligence will have on this sector.

IN DEPTH

Access and Use of ICT stats releasedAccess and Use of ICT stats released

Statistics Botswana has released the first results of the 2014 Information and Communication Technology Household Survey.