Safaricom introduces special calling promotion (Kenya)
Safaricom has introduced a US$0.01 tariff offer for its prepaid customers. Dubbed Bamba Na Bob is a two-month promotion and is a part of the operator’s strategic move to offer value added services for its customers.
According to Safaricom Head of Consumer Propositions Rita Okuthe, in the increasingly competitive environment, Safaricom would continue to ensure that all strategic actions are aligned with customer needs and their quest for real value. It’s important that they retain their customers while at the same time be competitive and they believe that by doing this (promotion) they are giving real value to their customers.
The promotion allows Prepay customers to spend US$0.01 per minute for all calls made within the network from 10 pm to 10 am daily. It runs through to July 20.
Ms Okuthe added that the Bamba Na Bob promotion would see Safaricom Prepaid subscribers make savings of up to 67 percent, for 12 hours every day over the next two months. All pre pay customers are eligible. To enrol, a subscriber will simply dial *555# for free. A lot of people think right now think you can’t get much out of $0.01but it will allow customers talk for longer.
Safaricom has however indicated that it will oppose further reduction in interconnection rates.
Yu introduces new voice calling promotion (Kenya)
Yu has introduced a voice promotion offering a calling rate of US$0.005 per minute within the Yu network.
The daily voice bundle promotion dubbed ‘amua mdogo mdogo’ enables customers to make calls within the Yu network for US$0.005 per minute all day and all night.
The subscription rate is US$0.02 per day and subscribers then enjoy the calling rate of US$0.005 per minute for that day and night. To use this offer, Yu subscribers have to dial *121#, choose mdogo mdogo and the daily subscription kicks in.
Samsung to open regional headquarters in Kenya
Samsung is planning to set up its regional headquarters in Nairobi before the end of August as it seeks to capture this market and grow its revenues.
Once in place, the regional headquarters will serve East and Central Africa. The firm has an office in Kenya that oversees operations in Uganda and Tanzania but it is not autonomous and still has to get its budget and targets from the global headquarters.
This will change with the setting up of a full subsidiary headquarters with the mandate to set targets and raise its own budgets. The move is also expected to reduce decision-making time and build closer ties by providing faster support services to partners in the region, to culminate with a new assembly plant in the near future.
Currently, Samsung operations in East and Central Africa are worth USD 250 million but the company wants to increase this to USD 2 billion by 2015.
According to Robert Ngeru, Samsung’s East Africa business leader, the company will increase its workforce by 30 percent to a total of 100 employees when it puts up the regional headquarters.
Three m-money companies to offer services in Kenya
Three global mobile payment firms are reportedly planning to launch services in Kenya with a view to encouraging e-commerce businesses in the country.
InMobi, Pay4Me and MoMagic all plan to launch services there in the coming months to help people pay for goods and services using their mobile phones.
Mobile advertising company InMobi plans to offer a new mobile payment system to boost e-commerce. Its SmartPay platform will be available in the next six months to individuals who want to access a payment gateway that enables them to receive money for their goods sold online.
M-banking surges as emerging markets embrace mobile finance – Research
A recent research has revealed that Global use of ‘mobile finance’ surged in the past year as the spread of new technology and mobile banking infrastructure drove a huge increase in take-up rates around the world.
In countries as diverse as China, Brazil and Kenya, the number of new users of mobile banking soared over 100 percent in 12 months as banks leapfrogged traditional service models and moved directly to mobile.
The increases were not restricted to emerging markets alone though. Take-up rates also surged in the UK, the US, Singapore, South Korea and Sweden, where banks offered customers new services via their mobile handset. In China, mobile banking is used by 25 percent of consumers, up 150 percent from 2010.
In the UK, the proportion of people using mobile banking increased from 9.7 percent in 2010 to 20.4 percent in 2011, while in the US the rates rose from 11.4 percent to 21.9 percent. In Sweden it was greater still: 8.1 percent to 20 percent.
And while adoption rates increased, desire for mobile banking in areas where it is not widespread is strong, peaking in sub-Saharan Africa, where almost two-thirds (63 percent) of mobile owners expressed an interest in mobile banking. Developed countries such as the US, Singapore and Hong Kong have made minimal progression in mobile wallet adoption over the past year.
The US moved from 6 percent in 2010 to 8 percent in 2011, Singapore increased from 10 percent to 13 percent and Hong Kong from 16 percent to 17 percent. In contrast, mobile wallet usage in Chile was below 1 percent in 2010, but has risen to 7 percent in 2011, just one percentage point below the US and higher than Australia (6 percent), France (5 percent) and the Netherlands (5 percent).
In China, mobile wallet usage grew by 133 percent to 21 percent of consumers, in Brazil by 122 percent to 20 percent and in Kenya by 150 percent to 25 percent. The financial services that capture the highest interest in China are paying bills (25 percent), getting money out of the bank (15 percent), and receiving wages (15 percent).
China’s usage of mobile wallet is already a considerable 52 percent above the global average and less than a quarter (23 percent) of Chinese consumers says they are not interested in mobile wallet.
Safaricom, MultiChoice roll out pay television service (Kenya)
Safaricom and pay-TV service provider Multi-Choice have launched a new service that will allow mobile subscribers to watch satellite television on Safaricom handsets.
The partnership between Safaricom and DStv will allow over 800,000 mobile subscribers to tune into TV content using 3G enabled phones. The development builds on a partnership the two firms started in 2007, when they launched a similar service that was only accessible via specialised handsets.
This new service will give subscribers 16 channels to view for US$0.69 per day or US$2.89 per week. The product is available on all 3G handsets wherever there is Safaricom 3G coverage.
CWU to oppose job cuts at Orange Kenya
If reports are to be believed, a dispute has arisen between Orange Kenya and its workers’ union over fresh plans by the operator to cut jobs.
The Communication Workers Union (CWU) said it had not been consulted over the measures and that it would oppose the move, with strike action if necessary.
According to Benson Okwaro, CWU secretary general, there was no justification whatsoever to retrench or send home more workers because of strong market competition.
He argues that competition is everywhere and that the operator should be able to compete like the rest.
Orange Kenya to slash 400 jobs
If sources are to be believed, Orange Kenya is planning to slash 400 jobs in the coming weeks and put assets worth billions of shillings up for sale.
Orange Kenya hopes these measures will boost cash reserves after a drop in revenue due to lower mobile call rates. The operator has launched a business realignment that will see one fifth of its workforce lose their jobs.
According to sources, the operator planned to cut 400 job contracts in the coming weeks, leaving it with 1,700 workers.
Orange Kenya also plans to cut commission rates for dealers from 14-18 percent to 12-15 percent.
Airtel Kenya introduces post-paid package
Airtel Kenya has introduced a post-paid package that will enable customers sign up for US$5.85 per month.
Those who subscribe to the postpaid Timam service will also get 200 free minutes for local calls and 10 free texts every month.
According to MD Rene Meza, the bundle would provide customers, especially individuals and small businesses, with extra flexibility in controlling their costs.
Safaricom gets Gag order against Porting Access (Kenya)
Safaricom has obtained a restraining order barring Porting Access Kenya from making any statement against the firm in regard to mobile number portability.
On Friday, Safaricom filed an application seeking orders to restrain the porting agent from publishing statements, which accuse it of sabotaging the mobile phone number portability process. The case will be heard on May 20. The court order bars Porting Access and its Managing Director Patrick Musimba from making any statements linking the firm to the porting process.
Mobile number portability was introduced into the market at the start of April, which allows users to change their mobile phone service providers without losing their phone numbers.
Last week, Porting Access released data showing since the service was launched, it had received 43,545 port requests. Out of the total requests only 10,000 have been successful, 15,000 are pending while 11,000 timed out.
The Communications Commission of Kenya is currently undertaking an audit on the causes of technical hitches impeding the portability process.
The regulator also urged operators to refrain from engaging in media wars before the matter is resolved.
