A deal has been signed to embed WhatsApp in new Nokia models. AFP
By MARK OKUTTAH
In Summary
- The free apps provided by third parties such as Whatsapp is denying telcos an opportunity to make money from multimedia SMS that attract higher charges if sent through the normal networks.
- Statistics from the CCK show that multimedia messages (MMS) dropped to 2.2 million in the three months to September compared to 2.5 million in the previous quarter.
- WhatsApp is the most successful of the apps allowing users to send MMS without paying the relatively higher fees charged by mobile operators.
Local mobile subscribers are increasingly
turning to free applications to send pictures and short videos in what
has seen a drop in multimedia SMS services.
The free apps provided by third parties such as
Whatsapp is denying telcos an opportunity to make money from multimedia
SMS that attract higher charges if sent through the normal networks.
Safaricom,
Airtel Kenya, Essar Kenya, and Telkom Kenya have expanded the capacity
of their networks to handle the multimedia messages but subscribers are
sending less of the heavy messages.
Statistics from the Communications Commission of
Kenya (CCK) show that multimedia messages (MMS) dropped to 2.2 million
in the three months to September compared to 2.5 million in the previous
quarter.
“(The drop) could be as a result of competition
from other similar services such as over-the-top messaging
applications,” CCK said in the report.
“Moreover, the fact that MMS billing system
depends on the number of kilobytes sent hence making it more costly may
be contributing to the low uptake of the service.”
WhatsApp is the most successful of the apps
allowing users to send MMS without paying the relatively higher fees
charged by mobile operators.
Such apps are gaining popularity because while
many telcos charge for individual texts, the app-based messages are sent
via telcos’ generous or unlimited data plans.
This has limited the growth of MMS over the normal
networks that are largely used for sending plain text-based messages
that are charged at Sh1 each or less if bundles are offered.
Kenya’s largest telco Safaricom earned Sh6.4
billion from its SMS service in the half year ended September, a revenue
segment that grew the fastest at 49 per cent.
The bulk of these messages are of the plain text
variety, with telcos worldwide accusing the free apps of hurting their
business model.
Telcos globally are losing over $10 billion in SMS
revenue annually due to the emergence of the Internet-enabled apps,
according to various ICT research firms.
Whatsapp, which has millions of users worldwide,
has expanded its reach covering a wide variety of handsets from
smartphones to feature handsets.
The firm last year signed a deal with Nokia to embed Whatsapp in new models of the Finnish phone manufacturer.
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