Essar Communications’ Kenya subsidiary said in a press release on Tuesday that it plans to expand its share of revenue from data in the country. As the fourth largest mobile phone operator in Kenya, analysts have already begun forecasting a decline in mobile Internet services across the country.
“I do think there is some room to expand and get a grip on the market, but with prices expected to go down drastically, it will be difficult for Essar to really take advantage,” said Nairobi-based consultant John Miller.
“Profits will grow as more people enter the market, but they will be offset by lower costs,” Miller added.
The company said they are expecting 12 percent overall growth in sales within the next two years. Currently they are at 8 percent, country manager Atul Chaturvedi said in an email interview with Bloomberg news agency.
”Data pricing is likely to reduce, and this in turn will see an increase in penetration and usage,” a company statement read on Tuesday.
Essar said that “the majority of our subscribers browse from their handsets and this number has been steadily increasing on a monthly basis. We are also seeing more and more people joining the network.”
By Staff
