Safaricom makes data play with 4G-ready TV decoders

Safaricom launched its Internet-enabled TV decoders Friday aiming at the home market with a view to boost revenue generated from data.

The launch came a day after the integrated services firm announced record-setting profits that were driven by strong growth in non-voice services.

Dubbed ‘The Big Box’, the 4G-enabled device incorporates data and Pay TV services, with features such as over 30 free-to-air channels, TV recording capability, and USB and SD media playback for pictures, music and videos.

The box will also receive channels from Bamba TV and other free-to-air competitor set top boxes.

Subscribers can purchase the decoder through two payment plans. The first option, with free-to-air channels, involves a six-month instalment plan, with an initial Sh4,999 followed by Sh999 as monthly installments.

The second option requires a one-off payment of Sh9,999 providing access to free-to-air channels as well 6GB Internet bundles every month for six months.

Both packages offer free YouTube streaming for the first three months.

“Our vision is to enable a differentiated broadband Internet solution that will enable our subscribers to watch new and exciting content from anywhere in the world,” said CEO Safaricom Bob Collymore.

In future, the provider is looking to venture into pay TV, providing for more international channels and video on demand services. At the moment, they are segmenting the market to map out their consumers.

Mr Collymore said that out of the 3.2 million households that have access to digital television, an estimated 2.4 million are not using any of the set top boxes in the market.

“We (Safaricom) have applied to the Communication Authority for a broadcasting license that will enable us to provide more products and services for our customers in the segment,” he said.

Currently, only Wananchi group’s Zuku that offers voice, Internet and broadcast as a package.

The decoder comes on the back of Safaricom’s growing 4G network, which is available in Nairobi and Mombasa. The 3G network is extensive and subscribers to the decoder will also leverage on it.

The decoder has an in built SIM card whose number will be used to buy bundles.

Through a monthly data bundle option, subscribers can purchase up to 50GB bundles for Sh4,000. The lowest cost for monthly bundles is Sh999 for 6GB.

Speaking at the launch of the decoder, Safaricom’s general manager for consumer business Sylvia Mulinge said that the idea behind the decoders was to give their customers a more enhanced experience through a smart TV.

Safaricom recently announced a Sh31.9 billion after tax profit-year ended March 2015 with mobile data revenue increased by 59 per cent to Sh14.82 billion compared to Sh9.31 billion for the same period 2014.