Airtel Kenya grew its share of the local voice market to 35.1 percent or 7.8 billion minutes, the highest in at least three and a half years, cutting that of Safaricom to a new low in the same period amid an intense battle between the two telcos.
The latest industry data shows Airtel’s share in the three months to September grew from 32.3 percent or 6.91 billion minutes in the previous quarter (to June), while that of Safaricom dropped to 64 percent or 14.2 billion minutes from 66 percent.
This is the highest share of the voice for Airtel since the 40.3 percent mark it posted in September 2019, while for Safaricom it is the lowest in three years since 62.1 percent posted in June 2020.
“Airtel Networks recorded the highest average on-net minutes whereas Jamii Telecommunications recorded the highest off net minutes. This is attributed to the fair tariffs offered by the two operators,” CA says in the new report.
Airtel’s gain came in a period when it offered the lowest pay-as-you-go tariffs at an average of Sh2.78 and Sh4.50 per minute for on-net and off-calls respectively, according to CA data.
Safaricom offered callers an average of Sh4.87 per minute in calling tariffs while calls on Telkom Kenya were priced at an average of Sh3.54 in the period under review.
Telkom, which has struggled to keep pace with Safaricom and Airtel, saw its market share dip below one percent or 159.18 million minutes in the period from 1.3 percent in the June quarter.
Jamii Telecommunications’ share remained below one percent even as the telco offered callers the cheapest rates for calls across to other networks.
Safaricom and Airtel have over the years been caught up in pricing wars in the battle for the local talk-time market. Airtel has offered callers lower rates in a bid to woo callers and help lift its revenues.
The war for control of the voice market has in the past triggered protests from Airtel that Safaricom’s calling promotions are lower than the actual costs of the service.
The telcos are likely to offer lower rates in general from next year when the new rates for the charges levied by mobile service providers on other telcos for terminating calls on their network take effect in March 2024.
CA cut the charges, commonly referred to as Mobile Termination Rates (MTR) at Sh0.41 from the current Sh0.58 in what is expected to trickle down to customers in the form of lower calling tariffs.
Voice, which was initially the mainstay for telcos, remains important but is no longer seen as a growth driver amid saturation of the market and competition from alternative communication channels.
