Zain fighting for market share

26 Sep 2008

Zain Kenya (known as Celtel Kenya until 1 August) has introduced a flat cross-network tariff ‘Vuka’ of KES8 (USD0.11) — a 50% reduction from the KES16 the firm has been charging for cross-network calls, as it focuses on subscriber retention and acquisition. Safaricom charges KES10 for on-net and KES25 for off-net calls, while Orange launched services last week with a tariff of KES7 for on-net calls and KES14 for off-net calls. In the first half of 2008, Zain lost around 20% of its subscriber base but Rene Meza, managing director of Zain Kenya says the company is now claiming 50% of all new mobile phone subscribers. ‘We are gaining 500,000 customers a month,’ he said.

Over the last two years cross-network call charges in Kenya have been slashed from over KES50 as Zain fought for a bigger market share from rival Safaricom. Meza said most recent steep reduction in cross-network tariff had been made possible by Zain’s movement to the KES4.42 standard interconnection charge set by sector regulator the Communications Commission of Kenya (CCK) for January next year.

Kenya, Airtel Kenya