Telkom Kenya cuts data tariffs by upto 33pc

A Telkom Kenya outlet in Nairobi. PHOTO | FILE

What you need to know:

  • Subscribers of the 1GB Internet bundle plan will now pay Sh500 from the previous Sh750, while 5GB will cost Sh2,000 from the previous Sh2,750.
  • The price cut comes on the backdrop of Telkom Kenya’s market share loss in the fixed Internet services.

Telkom Kenya has cut its mobile Internet tariffs by between 27 and 33 per cent, in a review that also saw it scrap some data bundle plans and introduce new ones.

Subscribers of the 1GB Internet bundle plan will now pay Sh500 from the previous Sh750, while 5GB will cost Sh2,000 from the previous Sh2,750. The firm has scrapped the 500MB it used to charge Sh500 and introduced a 400MB data bundle at Sh250. 

The telco has also introduced a new bundle of 2GB at Sh1,000. The new Internet tariffs apply for its pre-paid mobile Internet subscribers and those who access the Internet through modems. Orange has also extended the validity period from 30 days to 90 days.

Telkom Kenya said the new data offers were informed by extensive market research to determine current customer data needs.

“The new offers give subscribers the choice of buying the daily, weekly and monthly bundles due to their simplicity and affordability,” the firm said Tuesday in a media statement.

“Longer validity periods and affordable offers stood out from the feedback we received hence we tailored the offers to suit this trend,” it added.

Daily unlimited will now be 200MBs up from 100MBs, weekly unlimited will move up to 1GB from 500MB and monthly unlimited will move up to 3GB from 2GB.

The price cut comes on the backdrop of Telkom Kenya’s market share loss in the fixed Internet services.

Statistic from the Communications Authority of Kenya for the year ended June 2015, shows Telkom Kenya lost 9.8 per cent. Its market share on fixed Internet dropped to 1.8 per cent from 11.6 per cent for the year ended June 2014, while its subscribers now stand at 2,152 as at June down from 11,714, meaning it lost 9,562 clients in the past one year.

Mobile Internet subscriptions during the period stood at 19.8 million having grown by 42.2 per cent in the same period of the previous year.

Safaricom has 12.5 million subscribers representing 63 per cent market share, Airtel has 3.6 million users and a market share of 19 per cent.

Telkom Kenya (Orange) has 2.6 million mobile data/Internet subscriptions with a market share of 14 per cent.

Finserve Africa Limited recorded 873,643 subscriptions equivalent to four per cent market share during the quarter under review.

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