2012-06-30 03:53:26 - New Fixed Networks research report from Business Monitor International is now available from Fast Market Research

BMI's Q312 update to the Kenya Telecommunications market report incorporates market data from the Communications Commission of Kenya (CCK) relating to the end of December 2011. It also contains analysis of key regulatory and industry developments in the telecoms sector and BMI's five-year growth forecast for the mobile, fixed-line and internet sectors.

After a slow start to 2011 with net additions of just 312,000 (229,000 in Q111 and 83,000 in Q211) in H111, Kenya's mobile market grew strongly in H211 with net additions of 2.801mn (1.214mn in Q311 and 1.587mn in Q411). This resulted in total net additions of 3.113mn subscribers, or growth of 12.5%, to bring the country's total mobile subscriber base to 28.081mn by December 2011. This reflected a

penetration rate of 67.5%, up from 61.6% a year earlier. We expect the market to grow by an average of 7.9% over the next five years to reach 41mn subscribers by 2016, equivalent to penetration rate of 86.2%. Continued competition between the country's four mobile subscriber, leading to affordable tariffs and network expansion, will be the key growth driver of mobile subscriptions during our forecast period.


Full Report Details at
- www.fastmr.com/prod/404252_kenya_telecommunications_report_q3_20 ..


A key risk to our market growth outlook is the likelihood of operators shifting their strategies towards highvalue services for revenue growth as opposed to network expansion to underserved and low-income rural areas. Orange and Airtel joined Safaricom in the 3G market in late 2011 and early 2012 respectively to take advantage of the rising demand for demand services. Given the intense downward pressure on traditional voice tariffs, there is a tendency for operators to seek to offset the shortfall in voice revenue by focusing on the more lucrative mobile data market. This situation could redirect resources for rural roll-out towards the expansion and upgrade of data networks in urban areas to cope with demand. Meanwhile, we revised our 3G growth forecast this quarter to account for the expected uptick in subscriptions following the entry of a third service provider into the market. We now expect the Kenyan market to have 4.961mn 3G subscribers by end of 2012, equivalent to 15.5% of the total mobile subscriber base. By 2016, we expect the proportion of 3G subscribers in relation to the total mobile subscriber base to reach 23.5%.

The decline of Kenya's fixed-line sector accelerated in Q411, with net losses of 67,588 subscribers. This brought total net losses in 2011 to 97,202 subscribers. The downtrend is driven by the PSTN segment, which recorded net losses of 135,773 subscribers in the 12 months to December 2011 to reach 90,814. Although the fixed-wireless segment also reported net losses in Q411, its overall performance in 2011 was more encouraging with total net additions of 38,571mn. The fixed-line sector's weak performance in 2011 led to the downgrade of our fixed-line forecast this quarter. We now forecast fixed-line connections in Kenya to reach 273,000, a penetration rate of 0.6%.

According to the CCK, the number of internet users in Kenya reached 17.4mn by December 2011. The regulator's data also showed a steady growth in mobile data access lines, although it did not reveal the number of 3G-based mobile internet connections. Orange Kenya launched commercial 3G services in August 2011, followed by Airtel in February 2012. We expect this, along with network investment by fixed network broadband service providers, to drive growth in the internet sector during our forecast period. We have therefore, upgraded our broadband forecasts and now expect broadband penetration to reach 1.1% by 2016.

Report Table of Contents:

SWOT Analysis
- Mobile SWOT Analysis
- Wireline SWOT Analysis
- Political
- Economic
- Business Environment
Industry Business Environment Overview
- Industry Business Environment Overview
- Table: Sub-Saharan Africa Risk/Reward Ratings, Q312
- Kenya
Industry Forecast Scenario
- Mobile
- Table: Industry Forecast Scenario - Mobile
- ARPU
- Table: Industry Forecast Scenario - ARPU
- Fixed-Line
- Table: Industry Forecast Scenario - Fixed Line
- Broadband
- Table: Industry Forecast Scenario - Internet
Market Data Analysis
- Mobile
- Table: Subscriber Net Additions, Q410-Q411 ('000)
- Subscriber Mix And ARPU
- Table: Postpaid Vs Prepaid Subscribers, Q410-Q411
- Table: Kenya Mobile Market Overview
- Table: Airtel
- Table: Orange
- Table: Essar Yu
- Table: Safaricom
- Mobile Content
- M-Commerce Tops Operators' Strategy List
- MTN And Vodacom Lead The Way With Mobile Apps
- Mobile Advertising: The Next Big Thing?
- Leveraging Scale For VAS Deployments
- Table: Major Players Leverage Footprint In VAS Deployment
- Country Outlook
- Table: VAS Developments
- Fixed-Line
- Broadband
- Table: Kenya Internet Access Technologies By Subscriptions
- Table: Fixed-Line Developments
Regulatory Development
- Table: Kenya: Regulatory Bodies And Their Responsibilities
- Regulatory Developments
- Industry Developments
Vendor Profile
- Table: ATC Financial Statements (US$mn)
Company Profiles
- Safaricom
- Telkom Kenya
Market Overview
- Mobile
- Table: Regional Mobile Penetration Overview
- Fixed Line
- Table: Regional Fixed-Line Penetration Overview
- Broadband
- Table: Regional Internet Penetration Overview
Demographic Data
- Section 1: Population
- Table: Demographic Indicators, 2005-2030
- Table: Rural/Urban Breakdown, 2005-2030
- Section 2: Education And Healthcare
- Table: Education, 2002-2005
- Table: Vital Statistics, 2005-2030
- Section 3: Labour Market And Spending Power
- Table: Consumer Expenditure, 2000-2012 (US$)

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