Safaricom has said it will devise ways of tapping into the popularity of the WhatsApp messaging service to make money. Photo/AFP
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Safaricom said it will devise ways such as introduction of Internet service bundles.
Safaricom has said it will devise ways of tapping into the popularity of the WhatsApp messaging service to make money even as the Internet-based messaging application announced it was introducing free voice calls.
WhatsApp announced on Tuesday that it will introduce free voice call services in June, signalling increased competition on the most valuable business segment for Kenyan telecommunication companies.
Safaricom said it will devise ways such as introduction of Internet service bundles.
“We welcome innovation in this space and over the top (OTT) players are now part of the telco ecosystem and as such we have to find viable commercial ways in which to engage and collaborate,” the telco said in response to queries from the Business Daily.
Safaricom already charges Internet access bundles for Facebook users who wish to have unlimited access. The telecommunications firm does not, however, charge users for access to WhatsApp, which offers free texting services for those with Internet-enabled phones.
WhatsApp’s expansion into voice represents an increased threat to mobile operators. As with its free text messaging service, calls will be routed via smartphone internet connections and so has the potential to erode traditional revenue streams.
Revenue from voice calls account for the bulk of Safaricom’s revenue, earning the company Sh77.6 billion out of total income of Sh124.3 billion in the year ended March 2013.
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