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Kenya’s mobile operators progress with 5G trials

Sydney, June 11, 2020 (GLOBE NEWSWIRE) — Just released, this edition of Paul Budde Communication’s focus report on Kenya outlines the major developments and key aspects in the telecoms markets.
Read the full report: https://www.budde.com.au/Research/Kenya-Telecoms-Mobile-and-Broadband-Statistics-and-Analyses

Kenya’s telecommunications market continues to undergo considerable changes in the wake of increased competition, improved international connectivity, and rapid developments in the mobile market. The landing of four fibre-optic international submarine cables in recent years dramatically reduced the cost of phone calls and internet access, allowing internet services to be affordable to a far greater proportion of the population. In parallel, the sector’s regulator has reduced interconnection tariffs and implemented a range of regulations aimed at developing further competition.

The incumbent fixed-line telco has struggled to make headway in this market, prompting reorganisation in 2018 which included a sale and leaseback arrangement with its mobile tower portfolio. In early 2020 competition authorities approved the acquisition of Telkom Kenya by Airtel Kenya, with the new merged operator able to provide a greater challenge to the market dominance of Safaricom.

Numerous competitors are rolling out national and metropolitan fibre backbone networks and wireless access networks to deliver services to population centres across the country. Several fibre infrastructure sharing agreements have been forged, and as a result the number of fibre broadband connections increased 53% in 2019, year-on-year. Much of the progress in the broadband segment is due to the government’s revised national broadband strategy, which has been updated with goals through to 2030, and which are largely dependent on mobile broadband platforms based on LTE and 5G.

BuddeComm notes that the outbreak of the Coronavirus in 2020 is having a significant impact on production and supply chains globally. During the coming year the telecoms sector to various degrees is likely to experience a downturn in mobile device production, while it may also be difficult for network operators to manage workflows when maintaining and upgrading existing infrastructure. Overall progress towards 5G may be postponed or slowed down in some countries.

On the consumer side, spending on telecoms services and devices is under pressure from the financial effect of large-scale job losses and the consequent restriction on disposable incomes. However, the crucial nature of telecom services, both for general communication as well as a tool for home-working, will offset such pressures. In many markets the net effect should be a steady though reduced increased in subscriber growth.

Although it is challenging to predict […]

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