Telkom Kenya Wants to Drive Data Consumption

Telkom Kenya

Did you know Telkom Kenya (FKA Orange Kenya) has been trying to reinvent itself since it was taken over by Helios? and (like everyone else) wants to appeal to a younger, more tech savvy demographic. Apparently. It has started marketing its data products aggressively, offering 1GB per day for free to 4G subscribers and zero rating WhatsApp.
The issue is that 4G coverage is limited in Kenya and the growth spurt (200,000 new subscribers within two months of the rebrand) will soon tap out. It has a choice to make: grow the pie, or play a zero sum game by stealing subscribers from its competitors.
Going by this Techweez report, it is leaning towards the former. A big part of its growth strategy is to seed the market with underpriced 4G-enabled phones in the hope that their adoption will i) become a point of differentiation for the Telkom brand, and ii) justify investment in 4G infrastructure. At first glance, the strategy makes sense, but there is the big green and red elephant sucking out a lot of the oxygen in the room. Safaricom’s last financial report showed they gained 3 million new subscribers, and became more profitable amid a 3.7% drop in SMS revenue – which suggests that at least some Kenyans are willing to buy a new SIM or switch carriers for M-Pesa. Telkom Kenya has promised a mobile money service, but…🤷🏾

The sweet irony that Safaricom was technically once a Telkom Kenya subsidiary.

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