Equity Bank chief executive James Mwangi. Illustration/Joseph Barasa
By Mugambi Mutegi
In Summary
- The lender plans to migrate 12 of its financial services products to the virtual network besides offering standard telecoms services such as voice, text and data.
Two months ago, Equity Bank,
alongside two other firms, were awarded the Mobile Virtual Network
Operator (MVNO) licences, opening for them a special entry window into
the world of mobile telecommunications that is to date dominated by four
players.
Equity, which is Kenya’s largest bank by customer
base, has in recent weeks been preparing for the July launch of the
service. The lender plans to migrate 12 of its financial services
products to the virtual network besides offering standard telecoms
services such as voice, text and data.
The entry of new players into the highly
competitive telecoms market has caused excitement among consumers,
especially the promise of lower prices.
The Business Daily’s Mugambi Mutegi talked with Equity’s chief executive James Mwangi on the finer details of what consumers should expect.
Here are excerpts of the interview.
Here are excerpts of the interview.
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Your partnership with Airtel Kenya means
you are basically going to use someone else’s infrastructure to deliver
your product. How much are you paying for that and how long will the
deal last?
The contract with Airtel is open-ended and we have not paid them any money so far.
Once we go live, we will be paying them a variable
cost depending on use of the network. The ratios are yet to be agreed. I
can say that ours will be like paying for electricity after use.
But remember that we are not coming on board
Airtel’s network empty-handed but will be adding millions of Equity
customers to the unexploited network, giving them a chance to increase
their customer base and make more money.
If a time comes when we will have exhausted Airtel’s 60 per cent unused capacity, we will think about investing in extra towers.
For consumers, cost is a significant
factor in deciding whether to pick up a product or not. You have
mentioned that customers will be charged a graduated fee to send money
up to a maximum of Sh4,999. Above that, a standard charge of Sh25 will
apply. Could you please elaborate on withdrawal fees?
For amounts up to Sh4,999, the charge is one per
cent of the amount sent. To send Sh5,000 and above, you will be charged
Sh25 regardless of the transaction amount over and above this.
But when it comes to withdrawal, the fee payable will depend on the channel the customer uses.
If they cash the money at an Equity or Airtel
agent, the maximum charge will be Sh25. If they use our ATMs, they will
part with Sh30.
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