Kenya Poised for Huge Growth, Reports Pyramid

Kenya poised for huge growth in mobile services, Pyramid Research projects

March 17, 2009

3 Min Read

CAMBRIDGE, Mass. -- Mobile penetration in Kenya's telecom market will grow by 95 percent over the next five years, a market growth that will reflect intense competition among network operators and lead to a rapid uptake of mobile data services, according to a new report from Pyramid Research (www.pyr.com), the telecom research arm of the Light Reading Communications Network (www.lightreading.com).

Communications Markets in Kenya offers a precise profile of the country's converged telecommunications, media, and technology sectors based on proprietary data from our research in the Kenyan market. This 22-page report provides detailed competitive analysis of both the fixed and mobile sectors, tracks the market shares of technologies and services, and monitors the introduction and spread of new technologies such as WiMax, IPTV, and VoIP. This executive study provides a holistic view of the Kenyan communications market by analyzing key trends, evaluating near-term opportunities, and assessing upcoming risks factors. Download an excerpt of this new report here.

"With 29.28 million subscribers and a 67 percent mobile penetration rate expected by end of 2013, Kenya shows impressive growth rates with significant opportunity," notes Dearbhla McHenry, analyst at Pyramid Research and author of the report. "By the end of 2008, Kenya had more than 15.0 million mobile subscribers, with a mobile penetration rate of 39 percent. The subscriber base is expected to rise to 29.28 million, or 66.7 percent penetration, by year-end 2013," she says.

Increased competition is helping to fuel demand for mobile services in Kenya, McHenry says. "Until 2008, the Kenyan mobile market was a duopoly consisting of Safaricom and Zain," she explains. "That has now changed with the entry of two new players – Econet and Orange. Since their entry, there has been a fierce price war with operators slashing tariffs and introducing new air time promotions, making their services more affordable for the wider population."

Total revenue of Kenya's telecom market is forecast to grow by 42 percent from $1.39 billion in 2008 to $1.98 billion by 2013, with 78 percent of the total revenue to be generated by the mobile sector. "Mobile data will be the telecom sector's fastest-growing revenue stream, increasing in revenue from $62 million in 2008 to $224 million in 2013, partly due to the launch of 3G services but also to the explosive growth of low-tech, low-margin mobile data services, particularly mobile money transfers," says McHenry.

Communications Markets in Kenya is part of Pyramid Research's Africa and Middle East Country Intelligence Report Series. Pyramid Research's premium Country Intelligence Reports are the industry's best available analysis on market trends, regulatory environments, and competitive dynamics for 60 countries worldwide.

Download an excerpt of this new report here.

Communications Markets in Kenya is priced at $990 and can be purchased online here or through Dave Williams via email at [email protected] or telephone at +1 858-485-8870.

For more information about Pyramid Research's products and services, please visit www.pyr.com or contact us at [email protected].

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