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Mobile penetration in Kenya's telecom market will grow by 95 percent over the next five years, a market growth that will reflect intense competition among network operators and lead to a rapid uptake of mobile data services, according to a new report from Pyramid Research.
"Kenya shows impressive growth rates with significant opportunity," notes Dearbhla McHenry, analyst at Pyramid Research and author of the report. "By the end of 2008, Kenya had more than 15.0 million mobile subscribers, with a mobile penetration rate of 39 percent. The subscriber base is expected to rise to 29.28 million, or 66.7 percent penetration, by year-end 2013."
Increased competition is helping to fuel demand for mobile services in Kenya, McHenry says. "Until 2008, the Kenyan mobile market was a duopoly consisting of Safaricom and Zain. That has now changed with the entry of two new players - Econet and Orange. Since their entry, there has been a fierce price war with operators slashing tariffs and introducing new air time promotions, making their services more affordable for the wider population."
Total revenue of Kenya's telecom market is forecast to grow by 42 percent from $1.39 billion in 2008 to $1.98 billion by 2013, with 78 percent of the total revenue to be generated by the mobile sector. "Mobile data will be the telecom sector's fastest-growing revenue stream, increasing in revenue from $62 million in 2008 to $224 million in 2013, partly due to the launch of 3G services but also to the explosive growth of low-tech, low-margin mobile data services, particularly mobile money transfers," says McHenry.
Source: Cellular News.