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Wananchi Telecom, Safaricom battle for broadband market dominance

Kenya , 03 Jul 2019

Wananchi Telecom, Safaricom battle for broadband market dominance

According to the latest quarterly report by Kenya's Communications Authority (CA), Safaricom has gained market share in the fixed broadband segment, while market leader Wananchi Telecom has lost.

The Q1 report (January to March 2019) revealed that Safaricom secured over 16,000 connections to stand at 126,792 subscriptions. This represents 31.5% market share compared to 29% in the previous quarter.

Wananchi Telecom, owners of Zuku Internet, gained marginally. It has 143,000 subscriptions up from 141,000 in the previous quarter. Its market share dropped from 38% to 35.8%.

Safaricom has aggressively invested in its fibre network in most major towns.

According to its full financial report ending March 2019, Safaricom is said to have connected 300,000 homes and two thousand buildings with fibre.

"Fixed data now contributes 3.4% to total service revenue and grew at 22.7% year-on-year in the period," the company said.

Zuku initiated its plan to expand to other markets such as Nakuru, late last year. Other towns in the company's radar include Thika, Naivasha, Eldoret and Kisumu.

According to the CA's quarterly report, Safaricom still takes the mobile data market at 65.3%, followed by Airtel Networks Limited and Telkom Kenya Limited at 26.9% and 7.2% respectively.

Airtel Kenya continued to grow its market share and posted a 15% rise in mobile subscriptions.

In the previous quarter, the telco had 11.5 million subscriptions compared to the current quarter with 13.3 million subscriptions.

The CA attributed the rise in mobile subscription to users having multiple SIM cards in order to take advantage of various offers available.

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