Safaricom’s digital TV decoder sales double after price cut
Sylivia Mulinge, Safaricom consumer business director, said the number of users of the decoders has hit 3,000, up from 1,500 in November. PHOTO | FILE
What you need to know:
In November Safaricom cut the decoder prices to Sh4,999 from the previous Sh10,000 in a re-launch that was meant to reverse the low uptake of the devices dubbed ‘The Big Box’.
The move has seen users of the decoders hitting 3,000 up from 1,500 in November.
The sales of Safaricom’s Internet-enabled digital TV decoders has doubled after it slashed its pricing by 50 per cent in November.
Sylivia Mulinge, Safaricom consumer business director, said the number of users of the decoders has hit 3,000, up from 1,500 in November.
In November Safaricom cut the decoder prices to Sh4,999 from the previous Sh10,000 in a re-launch that was meant to reverse the low uptake of the devices dubbed ‘The Big Box’.
“As we continue to build awareness around the product, we are finding that most users are buying the box due to its unmatched ability to provide an in-home high speed data Wi-Fi hotspot,” Ms Mulinge told the Business Daily.
“The Kenyan market is increasingly experimenting with more data-heavy applications and our continued rich investments in the network have positioned us to be able to offer the seamless streaming experience necessary for such use.”
The telco unveiled the 4G-enabled devices betting on the demand created by the migration of analogue TV broadcasting to digital platform to drive sales of the decoder. However, in August, Safaricom was forced to suspend the sales of the Big Box to address technical glitches.
The device incorporates data and Pay-TV services, more than 30 free-to-air channels, TV recording capability, and USB and SD media playback for pictures, music and videos. It has an in-built SIM card whose number can be used to buy Internet bundles.
The device, however, suffered a technical hitch where Wi-Fi function was not strong enough to support indoor Internet access, forcing Safaricom to suspend its sale in August.
Customers who have subscribed to 5GB pay Sh1,199, while those on 15GB pay Sh3,199 and 30GB goes for Sh5,999.
Safaricom has recently been actively marketing the product through SMSs to it subscribers as it seeks to attract more users.
“Get Safaricom BIGbox for only 4999/-plus 3GB free internet from any Safaricom shop in Nairobi and enjoy 4G Internet at home,” reads the advert.
According to latest report by Communications Authority of Kenya (CA the total number of mobile Internet subscriptions hit 21.6 million in twelve months to September up from 14.8 million recorded similar period previous year.
Terrestrial wireless data subscriptions reduced to 13,222 users from 16,999 registered in the same period last year.
Safaricom recorded the largest market share of 64.1 per cent for mobile Internet subscriptions to stand at 13.8 million subscriptions during the period under review. Airtel registered 3.7 million subscriptions and a market share of 17.5 per cent.
Orange recorded 2.8 million subscriptions and acquired a market share of 13.4 per cent, while Finserve Africa Limited recorded 1.0 million subscriptions equivalent of 5.0 percent market shares.
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