Kenya Telecommunications Report Q4 2010

The Kenya Telecommunications Report provides industry professionals and strategists, corporate analysts, telecommunication associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Kenya's telecommunications industry.

The Q410 update of the Kenya Telecommunications report contains analysis of the country's mobile, fixed-line and internet sectors using latest market data released by the telecoms regulator, the CCK, and service providers. Our forecasts for the next five years to 2014 remain unchanged this quarter, as latest statistics largely confirm our expectations for the start of the year.

Meanwhile, mobile services, in the form of Safaricoms 3G mobile dongles, have become a massive part of the broadband landscape, overtaking fixed broadband connections. BMI has made the decision, across all of our reports, to include the 3G forecasts into the broadband forecast. Of course they are also kept separate as a mobile service that is important to mobile operators, but as they also compete directly with other broadband providers, we feel it is important to include these expected connections here as well.

In August 2010, the CCK revised down mobile interconnection fees from KES4.42 (US$0.06) per minute to KES2.21 (US$0.03). The move is aimed at encouraging telecoms operators to lower call tariffs. The CCK aims gradually to reduce the fees to KES0.99 (US$0.013) by 2013. Zain has reacted fastest to the cut in interconnection rates by slashing call rates and SMS costs by up to 50% and 80% respectively. In June 2010, the CCK initiated the process of mandatory registration of SIM cards and subscribers' details. Kenyan President Kibaki issued a directive in 2009 necessitating SIM registration. The registration of SIM cards will help the government in reducing mobile phone-aided crimes and enhancing national security. Although subscribers were directed to get their details registered by the end of July 2010, failing which their services will be disconnected, no update to this effect was available at the time of writing.