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
Airtel, Tigo launch cross-network money transfer service in TanzaniaBharti Airtel has announced the introduction of a service that will allow customers send and receive between Airtel’s mobile money service and that of Tigo in Tanzania. Read More
Airtel, VeriFone Mobile Money speed up merchant enablementBharti Airtel and VeriFone Mobile Money have reached an agreement to offer VeriFone Mobile Money’s merchant enablement applications for mobile Tap n Pay across Airtel’s 17 operating countries in Africa. Read More
Safaricom cuts fees on low and medium value M-PESA transfersSafaricom has announced a targeted reduction of transaction fees levied by the operator on its most popular person to person M-PESA transaction bands. Read More
Stakeholders meet over Ghana mobile moneyStakeholders from Ghana’s financial and telecoms industry have held talks at an MTN Stakeholders Forum in Accra to discuss the way forward in the quest to make Ghana a cashless society. Read More
Village saving associations get mobile money productAirtel Uganda, Grameen Foundation and Plan Uganda have introduced a new Group Savings product for Village Savings and Loan Associations. Read More
Nigeria’s VAS providers ‘on brink of extinction’WASPAN chief Simon Aderinlola says unless the regulator intervenes, WASPAN may not have anything left to regulate. Kokumo Goodie reports. Read More
Onfon, Safaricom launch Name TunesOnfon Media, a leading Value Added Telecoms service provider, has partnered with leading integrated telecommunications service provider Safaricom to launch a new service called Name Tunes on the Skiza Platform. Read More
GCB Bank Ghana to go live with mobile commerce platformgoSwiff has connected its 50th bank client, GCB Bank Ltd. in Ghana, to leverage mobile point of sale (mPOS) on goSwiff mobile commerce platform. Read More
MTN Ghana resolved to encourage effective cashless societyMTN has reiterated its resolve to encourage and ensure an effective cashless society through the introduction and promotion of its mobile money service. Read More
Safaricom, Virtual City launch FMCG efficiency solutionSafaricom Business has partnered with innovative mobility solutions developer Virtual City, to launch an application designed to enhance service efficiency for the Fast Moving Consumer Goods (FMCG) sector. Read More
FEATURED STORYNigeria’s VAS providers ‘on brink of extinction’
WASPAN chief Simon Aderinlola says unless the regulator intervenes, WASPAN may not have anything left to regulate. Kokumo Goodie reports.
BEST READ NEWS
IN DEPTHKenya rolls out e-extension to improve agriculture
In a bid to curb the overwhelmed number of agricultural extension officers in Kenya, the ministry of agriculture is embracing technology with their introduction of E-Extension services, which are aimed at reaching out to over 7 million farmers annually.