Kenya Telecommunications Report Q4 2014 - New Market Report

From: Fast Market Research, Inc.
Published: Thu Sep 18 2014

The imminent exit of YU Mobile from Kenya's mobile market will do little to ease the downward pressure on mobile tariffs and operators' voice revenues considering the expected entry of mobile virtual network operators into the market. As a result, we retain our view of revenue stream diversification as the most sustainable growth strategy for service providers. The Kenyan market is suitable for the implementation of telecoms crossover services and operators must explore opportunities to monetise the delivery of these services in the same manner as they have done with mobile financial services.

Key Data

* Kenya's mobile market grew by 1.7% quarter-on-quarter (q-o-q) in Q114, compared with a contraction of 2.9% q-o-q during the same period in 2013.
* Mobile ARPU appreciation continued in 2014, with Safaricom recording a 10% year-on-year (y-o-y) increase in mobile ARPU in the 12 months to March 2014.
* The rate contraction in the fixed-line sector eased in Q114, with number of active lines decreasing by just 0.7% q-o-q.
* The number of internet users in Kenya increased by 31.8% in the 12 months to March 2014.

Full Report Details at

Risk/Reward Ratings

Kenya is ranked 10th on BMI's Q414 Sub-Saharan Africa telecoms Risk/Reward Ratings (RRR), unchanged from the previous quarter. The country's overall score was also unchanged at 46.9, above the regional average aggregate score of 40.5. Kenya scores above average in all the four categories on our ratings table. The industry rewards score is sustained by ARPU, while the launch of a more powerful telecoms regulator, the Communications Authority of Kenya (CAK), reflects the industry risks score of 70. Kenya's mobile telecoms market is one of the most dynamic in the region, but it is held back by low ARPUs in the mobile sector and limited network coverage in the fixed-line sector. The country already has one of Africa's most sophisticated economies, and we predict that rising incomes will see increased demand for the goods and...

The Kenya Telecommunications Report features Business Monitor International (BMI)'s independent industry forecasts on the future strength of Kenya's ICT market, covering the fixed-line, mobile and internet segments and analyses latest regulatory developments and corporate news, including investment activity, mergers and acquisitions, joint ventures and partnerships. Leading operators and manufacturers are fully profiled, highlighting their quarterly financial performance, capital expenditure plans and latest contracts.

BMI's Kenya Telecommunications Report provides industry professionals and researchers, operators, equipment suppliers and vendors, corporate and financial services analysts and regulatory bodies with independent forecasts and competitive intelligence on the telecoms industry in Kenya.

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