Safaricom fixed Internet up, cuts Zuku dominance

A cyber cafe in Nairobi. Safaricom has grown its fixed Internet market. FILE PHOTO | NMG 

By JOHN MUTUA
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Summary

• Safaricom has grown its fixed Internet market by 11.5 percentage points from 21.2 percent; while Wananchi Group increased by 4.4 percentage points to 34.8 percent.
• In the 12 months to June, Safaricom gained an additional 59,720 fixed Internet connections while Wananchi Group had 34,194 new connections in the period under review.
• The sharp rise in fixed Internet connections on Safaricom comes as the telco increased its fibre network roll-out across the country by 34 percent over the past year.

Safaricom increased its share of the fixed Internet market to 32.7 percent in 12 months to June -- its highest in two years‑ edging closer to the dominant Wananchi Group that owns Zuku.

The latest industry data by Communications Authority of Kenya (CA) covering up to June shows that Safaricom has grown its fixed Internet market by 11.5 percentage points from 21.2 percent; while Wananchi Group increased by 4.4 percentage points to 34.8 percent.

In the 12 months to June, Safaricom gained an additional 59,720 fixed Internet connections while Wananchi Group had 34,194 new connections in the period under review.

The sharp rise in fixed Internet connections on Safaricom comes as the telco increased its fibre network roll-out across the country by 34 percent over the past year.

“Though a relatively new line of business, fixed data is now contributing 3.4 percent of service revenue. Our fibre roll out now covers more than 6,700kms opening up opportunities for content, smart home and enterprise propositions….,” Safaricom said in its report for the financial year ended March.

Overall the total number of customers on fixed Internet connections rose by 13 percent to 420, 980 in the period at the back of increased investments by the telcos to link more homes and offices to fibre-Internet.

The data further shows that Jamii Telecom grew its market share by 2.8 percentage points to 14.6 percent in the period under review. Its total number of fixed data connections stood at 61, 508 in the period to June.

The onslaught on Wananchi Group comes amid earlier reports in October 2017 by Bloomberg that the firm was looking to exit the Kenyan market and had contracted US consultant Lizard Limited to work on the modalities of a potential sale plan.

Safaricom has been increasing its fibre to the Home (FTTH) and fibre to the business (FTTB) connection.