Safaricom to end post-paid service

By Semaj Itosno, Nairobi, Kenya

With eyes fixed on profits, Safaricom is now set to cancel two of its post-paid calling tariffs, citing unsustainability.

Subscribers to the two tariffs currently pay a minimum of Sh1,000 and Sh2,500 per month for  talk time, data and SMSes.

There are currently more than 140,000 subscribers on the two services but Safaricom says it is not realizing any profits from the services.

The company has already informed Communications Authority of Kenya (CAK) on its intention to cancel the Karibu post-paid service it introduced in 2011.

According to Safaricom CEO Bob Collymore, current subscribers will be notified on how long they will continue enjoying the service as priced.

The subscribers will either decide to cancel their contracts or remain on the tariff under revised terms.

The Karibu post-paid tariff has two price plans. For Sh1,000 per month, a subscriber gets 900 minutes talk time for on-net calls, 100 minutes for off-net calls, 100 megabytes of data and 100 on-net SMSes.

For Sh2,500 a month, subscribers get 2,200 minutes for Safaricom to Safaricom calls, 300 minutes to rival networks, 250 megabytes of data and lastly 250 on-net text messages.

Unlike Safaricom prepaid customers who are charged Sh4 per minute for calls made during peak hours (8am and 10pm), the post-paid subscribers under the current terms pay less than one shilling per minute to make calls.

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