Technology

Safaricom widens range of services with new system

M-pesa

Safaricom’s M-pesa users will have to acquire the new SIM cards to enable them benefit from the technology. Photo/ANTHONY KAMAU

Consumers are set to enjoy a host of new services from Safaricom after it announced Chinese telecom firm Huawei had been awarded a Convergent Billion Solution (CBS) in East Africa after two years of searching.

Upon completion, this project will enable Safaricom to reduce network complexity and shorten the time for launching new services, handing the operator an advantage as it navigates a vicious price war.

“Safaricom is the first operator that has deployed the CBS in East Africa, which will enhance our competitive advantage and continue our leading innovation for the mobile market throughout the East African region,” said outgoing CEO Michael Joseph.

The solution supports various infrastructure networks and services and provides online rating, real-time control and express billing, greatly shortening time to market.

Last week, the firm indicated that it would soon be unveiling a phonebook access technology that will allow its mobile money transfer service subscribers to send money to any person whose contacts are on their SIM card thus eliminating the risks of funds being transferred to unintended recipients.

The firm mentioned that it would be introducing the technology early this year and on Thursday last week, chief executive Michael Joseph said that the company is only waiting for new SIM cards that are compatible with the new technology — an ICT mailing list named Kictanet

There have been industry concerns that the company was taking too long to introduce the technology, however Mr Joseph said the firm experienced difficulties in getting the software designed, installed and tested.

“It took much longer than expected since we also changed SIM card manufacturers” said Mr Joseph.

Safaricom’s M-pesa users will have to acquire the new SIM cards to enable them benefit from the technology.

It is however not clear whether the more than 9 million m-pesa subscribers will have to buy the new SIM cards or whether it will be issued for free.

The company also cited distribution and migration as another challenge that may slow the pace at which people switch to the new SIM cards.

When one sends money to the wrong recipient only two options are available to get back the money; if it is noticed immediately the sender can ask M-pesa agents to recall the transaction or alternatively ask the recipient to send it back, with the latter highly dependent on the moral of the person .

In some instances it has forced m-pesa users who have sent money into the wrong hands to take legal actions on recipients who refuse to return the money.

Early this year a woman was sentenced by a Machakos court for spending money mistakenly sent to her even after she was informed of the error.