Telcos train sights on restless youth to grow Internet market share

There have been concerns that technology is compromising the health and growth of the youth by denying them enough sleep.

But other analysts have also hailed a more connected world — the worldwide web— saying it helps in reducing criminal activities when most people find no room to idle.

They are always chatting, thus, as the saying goes, keeping away the devil.

In Kenya, the youth are emerging a crucial segment for the mobile phone companies whose competition is increasing by the day.

And for a good reason. The profits running into billions, going by the market leader Safaricom’s results over the years.

The youth are behaving in a way that has caught the attention of hawk-eyed marketers that spend sleepless nights about the restless youth who cannot put away the mobile phones even when driving or on the matatu.

Endless courting

Their hands are busy texting and roaming the Internet. They are gossiping or searching for deals, something interesting in their profession, they would say.

They just got busier. That way, providing a business opportunity for the telcos.

A recent PwC human resource survey indicated that the young professionals, fondly known as the Generation Y, are constantly looking for the challenging in their careers.

Ahead of the completion of the SIM card registration — closing at end of this month— that will give a more accurate subscriber figures, the operators are courting the youth endlessly.

Safaricom is the leader with a market share estimated at more than 80 per cent. Zain, which will soon rebrand to Bharti Airtel, is the follower while others are Essar (Yu) and Orange.

From inception, Yu targeted the youth by unveiling competitive calling rates and free text messages.

This is changing as other players close in on the window, smashing the myth that the youth do not have crucial demand.

“Research has shown that the youth want affordable and flexible tariff plans to stay in touch with their friends and family 24 hours. We will always strive to create value for our customers by providing innovative and affordable communication services,” said Mr Rene Meza, the Zain Kenya managing director.

Operators have trained sights on the youth and are increasingly using the language they identify with, including Safaricom’s airtime loan plan Okoa Jahazi and Zain’s Kopa Credo.

Perhaps riding on the popularity of social networking sites like Facebook, MySpace, and Twitter and popular TV shows and sports, the telecommunications firms have come up with affordable Internet rates.

Speaking during the signing of a partnership with Digital Mobile Television (DMTV), to offer Yu customers access to premium Dstv content free of charge until next March, the country manager, Mr Atul Chaturvedi, said the company would come up with new products to woo more youths.

“This is a competitive market and we shall continue to partner with relevant industry players key for us to provide innovative services to our subscribers,” said Mr Chaturvedi.

DStv general manager Felix Kyengo said the youth are “the best consumers” of mobile services beyond the traditional voice.

“The youth are the target audience for such programmes as the Big Brother Africa and the English Premier League, that form part of our premium content,” said Mr Kyengo.
Under the deal, Yu is offering subscribers sports, entertainment, news, commerce, and music.

In the last six months, providers have launched a wide range of products geared towards increasing access to the Internet, playing the pricing card.

This weekend, Safaricom is going a notch higher in promoting its data services for the youth.

Dubbed the FaceOff party, Safaricom is inviting the youth for performances aimed at growing subscription for their unlimited Internet.

Earlier in the year, Safaricom launched a Sh55 million national soccer tournament Sakata Ball eyeing this segment.

Zain Kenya has enhanced its Club 20 service, saying it will increase affordability and flexibility, allowing free all-day SMSs and free calls from 11pm to 6am.

Beyond calls

Accessing the Internet using hand-held devices is booming business that analysts say is growing.

According to Mr Moses Simiyu, a telecoms expert, the youth are the leading consumers of innovation and technology.

“The youth are keen on what a phone can offer beyond just sending and receiving calls. They are more concerned about the ability of the phone to log onto the Internet, if it has infrared and Bluetooth services, if it is USB-enabled and so on,” said Mr Simiyu. “Coupled with cheaper mobile phone plans available in the market today, there is every reason for the youth to have a mobile phone,” said Mr Simiyu.

Mobile companies and manufacturers are coming up with affordable handsets in a bid to take the Internet to the mass market.

Even in the high-end market, phone firms are battling for deals to distribute smart phones.

“The youth top the chart for the number of hours spent and the Internet per day,” said Mr Martin Omondi, an ICT consultant at Technology Associates.

The youth, he pointed out, prefer using SMS and a free service would be an incentive to subscribe onto a network.

According to Mr Omondi, the mobile service providers can no longer ignore the youth if they want to grow their data business.

“By accessing unlimited SMS all day and free Zain to Zain calls from 11pm-6am for Sh 20,  this offer brings forth to the market affordable SMS and voice calling options which are a key factor in increasing availability and penetration of telecommunications services in Kenya,” said Mr Meza.