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SMS usage triples to 3.6bn as voice stagnates

BD-SMS

The growth in SMS traffic could be attributed to the reduced prices. FILE

The use of the Short Message Services (SMS) has increased more than threefold to 3.6 billion texts sent in three months to December as voice calls grew by single digit.

Communications Commission of Kenya (CCK) attributed the growth of SMS usage to the reduction in the cost of sending messages to an average of Sh1 in a period that saw the operators raise voice tariffs to boost profits and end a two-year price war.

In December, Airtel and yuMobile raised their off-network calls 20 per cent to Sh3.60 following Safaricom that had increased its charges by a third that to Sh4 a minute, as they sought to earn more from cross-network calls.

The minutes of usage in voice during the same period grew to 7.3 billion from seven billion in the previous one.

“The growth in SMS traffic could be attributed to the reduced prices as the Communications Commission of Kenya continued to implement the SMS termination rates glide path,” the regulator report said.

(Read: Mobile phone firms dump price war in search of profit)

Safaricom was the biggest beneficiary in the SMS growth with CCK’s statistics showing that its subscribers accounted for 93.7 per cent of the total 3.6 billion SMSs sent by all the four operators.

While Airtel subscribers sent 164,555,603 messages (4.5 per cent), yuMobile subscribers made 44,080,190 (1.2 per cent) while Orange subscribers sent the least messages of 17,528,578 (0.6 per cent).

“This growth was occasioned by the increase in SMS bundles reported by Safaricom Limited during the period,” said the CCK report.

Despite the growth in SMSs during the period the report indicates that it was Safaricom which increased its market share in this front with the other three rivals registering a declining percentage points.

Safaricom SMS market share increased to 93.7 per cent in December from 80 per cent in September, Airtel shares reduced to 4.5 per cent from  14.8 per cent yuMobile share reduced to 1.2 per cent from 3.3 per cent while Orange managed only 0.6 per cent.

“The significant growth in market share by Safaricom Limited could have partially offset the decline in market shares by the other operators during the period.”

CCK attributed the growth in  mobile traffic to promotions and special offers by operators during the  festive season  in December.

These included 25 per cent bonus airtime for recharge above Sh100, special calling rates in specified areas and 50 per cent free airtime for each recharge through the money transfer service.