Kenya Mobile: Tough Competitive Environment to Push Business Model Innovation

Kenya’s economy has been in sustained growth pattern over the past three year and is set to rebound from the hiccup of post-election violence of early 2008. The mobile market is still in growth phase, with organic subscriber expansion bound to remain solid over the next two years, thanks to the entry of two new players in the market in 2008 - France Telecom and Econet. From an individual operator’s standpoint -and Safaricom aside, this is one of Africa’s toughest mobile markets. Deteriorating marginal revenue, stiff price competition, dominant market leader. On the flip side, the opex environment is one of Africa’s most favorable, making it possible for operators to push the boundaries of the mobile business model.