Mobile operators, manufacturers cut class chains

Competition among handset manufacturers and mobile operators for consumer loyalty at the bottom of the pyramid is intensifying with the launch of new applications.

While certain services like e-mailing has been restricted to a type of a handset, the new trends are dismantling the class barrier when it comes to value-added services.

The products may not be targeting revenue growth directly but are meant to achieve loyalty, say analysts.

Safaricom has developed a service dubbed ‘Kipokezi’ that allows users with any mobile phone to send and receive an e-mail at Sh3.50 or chat in real time on the network at Sh1.50 per chat message.

The application is targeted at low-income subscribers who find the current mobile data charges prohibitive and use low-cost handsets.

‘Kipokezi,’ say analysts, is more of a subscriber retention strategy than a revenue-earning development as competition in the telecoms market places more weight in value-addition for service differentiation.

“This service packs great value to our customers. They will be able to handle their business online, check mail, find information, chat and keep in touch in a fast and cost-efficient manner,” said Safaricom chief executive Michael Joseph.

“The price of Internet-ready phones has kept many Kenyans off the web, a trend we are determined to change. This innovation is also at one with our constant strategy of increasing the utility of the mobile phone and expanding the reach of our data product.”

Safaricom has teamed up with ForgetMeNot Africa, a firm specialising in unified messaging systems for telecoms to develop the service that bypasses the need for Internet access.

Kipokezi, which had a soft launch recently, incorporates popular chat services such as MSN Messenger, Yahoo!, Windows Live and Gtalk.

The product comes as the leading handset manufacturer Nokia says Kenya is among the top seven countries activating its proprietary free Ovi Mail service that now has 10 million users globally since launch in late 2008.

“Seven of the top ten countries activating Ovi Mail accounts are in emerging markets. Indonesia, Vietnam, India, Bangladesh, China, Kenya and Nigeria are among the top countries for activation,” says Nokia.

Mr Gerard Brandjes, general manager for Nokia East and Southern Africa, says the service is aimed at people who have never used e-mails, hindered by cost and access to computers and Internet.

With only 25 per cent of the world population having access to an e-mail service, mobile operators and handset manufactures are betting on the huge uptake of mobile telephony to push their e-mail services among other application offerings to maintain customer loyalty.

Nokia is aggressively marketing its Ovi Store, an online portal selling games, music, among other applications in a bid to net the multi-billion mobile application market dominated by Apple.