Kenyan operators outsource services to cut employee cost
www.WirelessFederation.com/news: The customer service and Network management operations of the telecom operators in Kenya are being outsourced in order to remain competitive in the long run. Following the footsteps of Telkom Kenya and Zain, Essar Telecom Kenya, operating under the Yu brand, announced an outsourcing agreement with Aegis.
In an effort to keep its employee costs low, the customer care services and Network management of Zain Kenya has been outsourced to Nokia Siemens while Telkom Kenya has outsourced its customer care operations to local BPOs Horizon and Kencall.
According to analysts, the initial focus for the firms was to grow their top lines, but now the executives are looking both at the top line and costs while the falling ARPU will put downward pressure on earnings growth. Incidentally, due to increased competition, ARPUs (average revenue per user) have declined significantly in recent years and it has resulted in reduction in mobile tariffs across the board.
Telkom Kenya shifts focus for 2010 following net loss
www.WirelessFederation.com/news: In an attempt to recover, following a net loss of KES10 billion (USD124.6 million) in 2009, Telkom Kenya has announced that it will shift its strategic focus in 2010. Revenue of KES11 billion was generated by the company but due to higher levels of competition it turned to net loss.
The profit level of the industry also plunged when the operators dropped their prices to gain market share.
According to Telkom Kenya CEO, Mickael Ghossein, the company had encountered severe conditions in the last trading year that had affected its ability to generate profits and so the company has turned its focus on providing quality services, innovating and providing value for money.
The company has also planned to move the market towards true broadband connectivity, offering speeds of up to 8Mbps.
Kenyan operators ask govt to lower 3G prices
www.WirelessFederation.com/news: Due to the sustained pressure from the operators, Kenyan government is considering a reduction in the cost of 3G licenses.
Earlier on January 7, 2010 the Communications Commission of Kenya (CCK) had rejected calls from Telkom Kenya and Zain to lower the USD25 million fees on the grounds that Safaricom had already paid the full amount for a concession. The operators opposed the government decision on the grounds that that the current fee would prove prohibitive to the deployment of 3G services.
According to Ndemo, they will do everything possible to ensure that they have created the necessary competitive environment, even if it means that they revise the cost to reasonable levels and if they decide that they are lowering, they would have some mechanisms to ensure that Safaricom does not lose its money.
1.2 million Mobile users at year-end 2009: Telkom Kenya
www.WirelessFederation.com/news: With the addition of 428,000 net new customers in just three months, Telkom Kenya ended December 2009 with 1.2 million mobile subscribers. However, the operator still fell short of its target of two million registered users by year-end despite of an impressive growth in the latter part of the year.
Meanwhile, ‘Orange fixed-plus’ fixed-wireless CDMA-450 network ended 2009 with 250,000 customers, up from 236,700 a year earlier.
According to CEO Mickael Ghossein, the company invested around KES18 billion (USD225.3 million) on network expansions and upgrades in both 2008 and 2009 and plans to spend between KES10 billion and KES16 billion in 2010, with the introduction of a mobile banking product and possible entry into the country’s 3G market on the firm’s agenda.
Telkom Kenya (Orange) to conduct 3G trials
www.WirelessFederation.com/news: In order to enter Kenya’s fast-growing mobile data market, a series of 3G trials will be conducted by Telkom Kenya (Orange) across its mobile network.
The number of customers of the telecom operator rose from 697,000 a year ago to 772,000, this year. The company now intends to build on this growth by investing in the budding data market and 3G presents the opportunity to achieve fast growth. Submarine cable systems like SEACOM and TEAMS, has also boosted network capacity and bandwidth availability, leading to the growth in demand for data services in Kenya.
Telkom’s rival Safaricom was first to roll out 3G services, to obtain a licence in October 2007 and to launch W CDMA-based services in 2008. Safaricom also announced an increase by 93.6% over the year that ended 30 September 2009, with internet representing 17.7% of its revenues.
Zain Kenya followed suit in October 2009 and purchased its own USD25 million 3G concession in preparation for a network rollout.
Telkom Kenya, Vodafone enter Safaricom stake negotiations
Telkom Kenya managing director Sammy Kirui, mobile subsidiary Safaricom managing director Michael Joseph and top Kenyan treasury officials are in London to negotiate the sale of another 9 percent of Safaricom to Vodafone, the East African reports. Safaricom, a profitable company, is currently split 60/40 between state-owned Telkom Kenya and Vodafone. The government must raise USD 375 million to modernise Telkom Kenya and pay of over 11,000 workers it plans to make redundant. Telkom currently has 18,000 employees and is losing between USD 40.5 million and USD 67.5 million a year, according to a PKF Consulting audit in 2005. Neither party has indicated how much the stake is likely to cost, with the results of an IFC valuation on the government’s behalf known only to a few top treasury officials. Back in March, Vodafone offered to pay USD 100 million for 11 percent of Safaricom.
Source- http://www.telecompaper.com
Technorati : Kenya, Mobile, Safaricom, Telecom, Vodafone
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