Subscribers ignore calls to switch networks while keeping numbers
Data from the Communications Commission of Kenya (CCK) shows people taking up mobile number portability (MNP) dropped significantly.
What you need to know:
CCK's data shows people taking up mobile number portability (MNP) dropped to 678 in the three months to June compared to 36,224 in a similar period last year.
The reduced interest looks set to hurt the fortunes of Porting Access Kenya whose revenue model is hinged on a one-off porting fee of Sh200.
CCK noted that the large number of subscribers on a network, also known as club effect, has also discouraged subscribers from taking up MNP.
The number of mobile subscribers switching networks while retaining their phone numbers has shrunk to an all-time low.
Data from the Communications Commission of Kenya (CCK) shows people taking up mobile number portability (MNP) dropped to 678 in the three months to June compared to 36,224 in a similar period last year.
CCK approved migration to a rival operator while retaining one’s unique mobile number in April last year to encourage competition and consumer choice.
The reduced interest looks set to hurt the fortunes of Porting Access Kenya whose revenue model is hinged on a one-off porting fee of Sh200.
“The low uptake … could be attributed to the reduced tariff differentials among operators; long porting duration … club effect which is enhanced by the subscription to mobile money transfer service coupled with consumer preferences and choices,” CCK said in a statement.
During its introduction, there were significant variations in the pricing of SMS and voice charges, with CCK betting on the new service to enable consumers to switch over to telcos with cheaper rates without losing their numbers.
But Airtel, Telkom Kenya, and Yu have since reduced their voice service charges to Sh3 per minute or less while Safaricom’s is Sh4 per minute. The near-similar rates have reduced subscribers’ incentive to migrate.
As of June, Safaricom had a total of 19 million subscribers, followed by Airtel (4.9 million), Telkom Kenya (3.1 million), and Essar Telecom that runs the Yu brand (2.6 million).
The MNP technology was hyped as one of the most flexible and convenient ways of allowing users to switch service providers, however, since inception, it has continued to show mixed signals.
While MNP usage remains relatively negligible in relation to the subscriber base of 30 million, people continue to use multiple SIM cards to enjoy various offers by rival telcos, have been releasing products to grow the number of people on their networks.
Handset manufacturers have also responded to this trend by introducing phones accepting two or three SIMs.
CCK noted that the large number of subscribers on a network, also known as club effect, has also discouraged subscribers from taking up MNP.
This is because subscribers belonging to the same network enjoy lower calling rates besides having access to a bundle of benefits.
Safaricom is the leading player in the mobile money transfer market, having about 15 million users who send a daily average of Sh2 billion though its M-Pesa service.
CCK added that the long time it takes — going beyond the maximum of 48 hours — to migration has also hurt uptake.
