Telecommunication service provider Safaricom is the big fish in the Kenyan telecommunication industry and it will continue to dominate the industry for a very long time. Recently, it partnered with its main rival Airtel to launch cross-network mobile money transfer. This is seen as a step to end its dominance in the industry but it will be a hard feat. The following are some of the reasons why Safaricom will continue to get the lion’s share in the telecom industry.
Wide gap
In terms of subscribers, Safaricom has got the largest number in Kenya. As at January 2017, Safaricom had recorded a whopping 25.94 Million subscribers according to a report published in the Daily nation of January 20th 2017. Airtel had a total of 6.76 Million subscribers, Telkom subscribers had dropped to 2.9 Million up from 5.2 Million and lastly Equity bank owned Equitel came forth at 2.28 Million subscribers. If you scrutinize these numbers well, you will realize that the gap created between Safaricom and other telecom service providers is too big to be filled in a few years. It will take many years for others to catch up with Safaricom and if they do not up their game, then the gap, like that between the rich and the poor, may continue to widen.
M-Pesa
M-pesa is the best thing that happened to Safaricom. The convenience it has brought to Millions of Kenyans cannot be wished away. Even though other mobile money transfer services are available, many still prefer to use M-pesa. The cross-network mobile money transfer may also work against or for Safaricom. In a bid to retain its customers, Safaricom scrapped charges for sending and withdrawing Kshs 100 and below. It may look insignificant but it is a big deal to low-income earners. This was a very clever trick to retain and attract more poor people to use Safaricom.
PayPal-M-pesa deal
For a long time, many Kenyans who work for international organizations and/or online firms have relied on PayPal payment system. They receive their money through their PayPal accounts and withdraw from Equity bank. The recent development that allows PayPal users to access their money through M-pesa is a game changer. Many youths are turning to online writing jobs as the only way to make ends meet. Most of them who have PayPal accounts will find it easy to use Safaricom’s M-pesa.
Numerous partnerships
There is no other telecommunication service provider in Kenya which has partnered with numerous banks as Safaricom. Nowadays, almost every bank and Sacco Kenya has a till reserved for M-pesa. Kenyans can also transfer money from the bank to their M-pesa accounts and vice versa. This will go a long way in ensuring that Safaricom remains the giant in the industry.
Lipa Na M-pesa
Lipa Na M-pesa services are widely spread in the Country. Whether you are buying goods from a supermarket or whether you are purchasing drinks in a bar, there is always that option of paying using M-pesa. Whether you are buying milk from your local tuck shop or re-fuelling at a petrol station, there is always the convenient option of paying using M-pesa.
There are other factors such as wide network coverage and high internet speeds which puts Safaricom at the top of the industry but I will not go into details. The fact remains that Safaricom will continue to dominate Kenya’s telecom industry for a long time.