Telcos

Your Calls and Mobile Money Transfers Are Making Telcos Rich

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mobile money swimming rich

Safaricom, Airtel, Telkom and Equitel generated a total of KES 276.6 billion in revenue between April and June this year, an increase of 4.6% compared to the same period last year. The jump in income can be attributed to voice calls and mobile money usage that has put more money in the telcos pockets.

According to the latest stats from The Communications Authority of Kenya (CA), in the period under review, voice services recorded a revenue share of 38.2%, other mobile services which include mobile money and roaming had a share of 32.8%, data contributed 21.9% revenue share and SMS revenue share stood at 7.1%.

Interestingly though, despite the increase in revenue, telcos spent less money in investments in the sector. “During the same period, there was a drop in amount spent in investments by 41.0% to
record 35.6 billion from 60.3 billion Kenya Shillings posted in 2018,” reads the CA report.

The chart below shows the revenue share per service for the whole industry:

[infogram id=”2019-telco-revenue-share-1hnp27wnwdjy4gq” prefix=”4Q4″]

Individual Telcos

When it comes to analyzing individual Telcos, the trend varies from one company to the other. For instance, Safaricom’s biggest earner is the lowest earner for all other telcos.

Safaricom’s largest revenue share came from mobile money and roaming services with the later pulling the heavier weight. The lowest earner for the green-themes telco was data, probably attributed to the telcos more expensive offerings in this segment.

Airtel’s largest earner, on the other hand, was data, followed by voice, SMS and mobile money and roaming dragging behind with a mere 1.4% contribution to the sector. Telkom Kenya had an almost similar trend, with the biggest earner being data, then voice, mobile money and roaming and lastly SMS which contributed zero to the sector. Equitel’s biggest earner was SMS with almost nothing coming from mobile money and roaming.

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