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 Mobile industry growth-Ad Agencies go hand in hand (Kenya)

  • August 19th, 2008
  • 8:33 am

Outdoor advertising is one of the biggest marketing media in Kenya where mobile operators are spending excessively. “It’s the kind of spending that in the past has been associated only with cigarette brands or Coca-Cola,” said Michael Foley, who runs the East African operations of Essar Group of India, a company that is backing a new wireless network scheduled to begin operating in Kenya. Safaricom dominates the mobile business in Kenya for years, a local company whose biggest shareholder is Vodafone, with 85 percent and the rest hold by an operator in Kuwait, Zain. Two newcomers will soon join the chain. As Essar, France Télécom have recently acquires a controling stake in Telkom Kenya. They are planning to build a new mobile network that may market under the Orange Brand. According to a local media report, Telecommunications companies are expected to spend about 4.7 billion Kenyan shillings (or about $72 million) on advertising this year. Safaricom alone accounts for 2 billion shillings in spending. Given its dominant position, Safaricom plans no new directions in its advertising, Mr. Joseph, the chief executive, said.