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QUARTERLY SECTOR STATISTICS REPORT

FIRST QUARTER OF THE FINANCIAL YEAR 2013/14 (JUL-SEPT 2013)

Direct any queries to this report to: Director/Competition, Tariffs and Market Analysis Tel:+254-703 042000 Email: info@cck.go.ke Website: www.cck.go.ke

Disclaimer: Although every effort has been made to ensure accuracy of the data contained in this report, the Commission is not liable for inaccuracies in any of the information contained in this report, which is based on compliance returns from the contingent upon the operators/service providers’ compliance returns.

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TABLE OF CONTENTS List of Abbreviations ...................................................................................................................... 5 I. 1 THE QUARTER IN SUMMARY .......................................................................................... 6 CELLULAR MOBILE SERVICES....................................................................................... 8 1.1 1.2 1.3 1.4 1.4.1 1.4.2 1.4.3 1.4.4 1.4.5 1.5 2 2.1 2.2 3 3.1 3.2 3.3 3.4 4 6 7 Subscriptions ............................................................................................................. 8 Mobile Money Transfer Service ............................................................................ 11 Mobile Number Portability .................................................................................... 11 Mobile Traffic and Usage Pattern ......................................................................... 11 Voice Traffic ............................................................................................................ 11 Voice Traffic by Operator ...................................................................................... 13 Minutes of Use ......................................................................................................... 14 Roaming Traffic ...................................................................................................... 16 International Mobile Traffic .................................................................................. 17 Mobile Revenue and Investments .......................................................................... 18 Subscriptions ........................................................................................................... 18 Fixed Network Traffic ............................................................................................ 19 Internet/Data Service .............................................................................................. 21 Broadband Service .................................................................................................. 23 International Bandwidth ........................................................................................ 24 Revenue and Investment in the Data/Internet Market ....................................... 25

FIXED TELEPHONE SERVICE ....................................................................................... 18

DATA AND INTERNET SERVICE ................................................................................... 21

ELECTRONIC TRANSACTIONS ...................................................................................... 26 BROADCASTING ............................................................................................................... 26 POSTAL AND COURIER SERVICE ................................................................................. 27 7.1 7.2 7.3 Postal and Courier Traffic ..................................................................................... 27 Number of Postal Outlets ....................................................................................... 28 Postal and Courier Revenue and Investment ....................................................... 28

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CONCLUSION..................................................................................................................... 28

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.... 19 Fixed Network International Voice Traffic ............................................................................................................. 16 Roaming Traffic ................................................................................ 11 Number of In-ports .......................... 23 Other Fixed/Wireless Internet Subscriptions by Operator ......... 19 Local Fixed Network Traffic in Minutes .................................................. 8 Mobile subscription per operators ........................................................... 28 3 .............................................................................................................................List of Tables Table 1: Table 2: Table 3: Table 4: Table 5: Table 6: Table 7: Table 8: Table 9: Table 10: Table 11: Table 12: Table 13: Table 14: Table 15: Table 16: Table 17: Table 18: Table 19: Table 20: Table 21: Table 22: Table 23: Table 24: Table 25: Table 26: Mobile Subscriptions ..................................... 27 Postal and Courier Traffic ................................................................. 26 Average Broadcast Audience .. 27 Number of Postal Outlets . 12 Voice Traffic by Operator ............................ 17 Mobile Revenue and Investment (KES) ....................................... 17 International Mobile Traffic (Minutes) .................................. 28 Postal and Courier Revenue and Investments ........................................................................................................................................................................ 23 International Internet Available Bandwidth (Mbps) ........................................................................................... 20 Internet Subscriptions and Internet Users ...................................................................................... 15 Multimedia Messaging Service ........................................................ 25 Number of Domain Names........................................................... 14 Short Messaging Service per Operator ........................ 9 Mobile Money Transfer..................................... 25 Data/Internet Revenue and Investment ..................................... 18 Fixed Network Subscriptions ................................................................... 21 Mobile Data/Internet Subscriptions by Operator ..................................................................................................................................................................... 24 International Internet Connectivity Bandwidth (Mbps) .......................................................................................................... 26 Percentage Program Content (Both TV and Radio) ....... 11 Local Mobile Voice Traffic in Minutes ...............................

............................................. 15 Estimated Number of Internet Users and Internet Penetration ...................................... 10 Growth in Mobile Voice Traffic in Minutes ............. 10 Percentage Mobile Penetration ..................................................................................................................................... 9 Percentage Market Share Subscription per Operator .......................... 24 4 ............. 22 Broadband Subscriptions ...............................................................List of Figures Figure 1: Figure 2: Figure 3: Figure 4: Figure 5: Figure 6: Figure 7: Net Additions in Mobile Subscriptions ........................................... 13 Minutes of Use per Subscriber per Month ....

List of Abbreviations ICTs EASSy EVDO GSM LION2 Mbps MMS MoU SEACOM SIM SMS TEAMS VSAT FY Information and Communication Technologies Eastern Africa Submarine Cable System Evolution-Data Optimized Global Systems for Mobile Communications Lower Indian Ocean Network Megabits per second Multimedia Service Minutes of Use Sea Sub-Marine Communications Limited Subscriber Identification Module Short Messaging Service The East African Marine System Very Small Aperture Terminal Financial Year 5 .

The number of agents on the other hand grew by 3. Local mobile traffic increased to 7.3 per cent during the previous quarter. The information provided in this quarterly report is subject to alteration in case of any revisions or updates from the service providers.3 million up from 30.5 per cent to stand at 5.264 during the previous 6 . THE QUARTER IN SUMMARY The ICT Sector Quarterly Statistics Report for the first quarter of the Financial Year 2013/14 (Q1 FY 2013/14) provides an overview of the performance and development trends in the ICT sector using data analysis of indicators from the following service categories:  Mobile telephony  Fixed Telephony  Internet/Data  Postal and Courier  Content  Electronic Transactions and. Fixed terrestrial lines however showed positive growth after recording 58. Each subscriber sent an average of 54 SMS per month. Mobile penetration however declined by 0. representing a 3. This increase could be attributed to special offers and promotions by the operators during the quarter.8 million subscribers representing 98.1 per cent growth.1 billion minutes posted during the previous quarter. Pre-paid subscriptions continued to dominate mobile telephony with the quarter in review recording 30.6 minutes d up from 78. The number of SMS grew by 19.4 minutes recorded during the previous quarter.5 per cent to post 455.4 billion minutes up from 7.1 per cent to 25.5 per cent to reach 31. the average Minutes of Use per month rose to 79.5 per cent of the total subscriptions. the number of subscriptions rose marginally by 1.469 recorded during the previous period.2 billion up from 4.  Broadcasting In mobile telephony.4 percentage points to 76.466 posted during the previous quarter. During the same period.9 per cent from 77.750 up from 88.PRELIMINARY NOTES   This report is based on data provided by service providers.1 million up from 24.749 lines from 58. representing a 4.3 per cent decline. 148 subscriptions registered in the previous quarter. During the quarter under review. Post-paid subscriptions on the other hand grew by 5.7 per cent to reach 91. The fixed line market continued to record a downward trend to post 209. I.5 million registered during the previous quarter. the number of subscriptions grew by 2.983 compared to 432.3 billion recorded during the previous quarter.339 lines down from 216.8 million subscriptions recorded during the previous period. Mobile money transfer service continued to record growth due to its popularity and convenience in usage.

the estimated number of internet users stood at 19.2 million letters down from 2.9 per cent to register 16.0 per cent growth was realised. This slight decline could be attributed to the SIM card registration audit carried out earlier in the year.208 letters sent during the previous quarter.4 million subscriptions posted during the previous quarter.7 million in the Economic Survey 2013.4 million letters received during the previous quarter. 205 posted during the previous quarter. international outgoing traffic increased to 1.397. the number of licensed FM radio stations stood at 103.6 million down from 12. During the quarter under review.quarter.906 down from 1. the population that had access to internet services reached 47.5 million to 40. The decline in internet/data statistics is as a result of the national population figure revision from 39.1 per cent to reach 1. the new subscribers might not necessarily have been internet users or have internet enabled mobile phones.823 subscriptions recorded during the previous quarter. bandwidth utilisation represented 41.6 million estimated during the previous quarter. 7 .1 per cent decline in its subscriptions to stand at 11.398. However.4 per cent during the previous quarter. At the same time. The number of broadband subscriptions decreased marginally by 0. Even though mobile subscriptions increased during the quarter. the number of letters sent locally increased significantly by 26.374 representing a 7.9 per cent growth.850 Mbps recorded during the previous quarter. This decline was mainly driven by decrease in subscriptions for mobile data/internet. In the postal and courier sector.1 per 100 inhabitants down from 49. International incoming letters declined by 5.732 up from 27.590 subscriptions from 158. Conversely.1 million from 922. international Internet bandwidth available in the country decreased to 862. This increase could be attributed to the increased dispatch of success cards as this quarter precedes the month that national exams begin.7 per cent per 100 inhabitants recorded during the previous quarter. However.2 million letters sent during the previous quarter. Correspondingly.1 million down from 19.95 Mbps posted during the previous quarter. compared to the same quarter of the previous year.834Mbps from 862.900Mbps from 356. By the end of the quarter.8 per cent during the period to register 150. Fixed wireless recorded a decline of 4.8 per cent of the total capacity from 41.1 per cent to reach 360.8 million up from 13. 39. the used capacity went up by 1.874.The number of analogue TV stations stood at 14 while 25 channels had already been activated on the digital platform.3 per cent to post 2. Thus. The number of registered domain names rose to 29. The Internet/data market segment registered a 6. terrestrial wireless as well as satellite subscriptions.

4 53. net mobile additions1 increased to a quarterly high of 752.148 Compared to the same period in 2012.301.506 Subscriptions Source: CCK. This growth indicates recovery from the decline experienced earlier in the year following the switch-off of unregistered SIM (Subscriber Identification Module) cards.640 30.5 per cent in the quarter ending September 2013 to reach 31.142 297.9 Prepaid 30.148 30.9 per cent growth.084 in the quarter.5 per cent of the total mobile subscriber base and reached 30. 8 .523 Subscriptions Post-Paid 455. this represented a growth of 53.274 432.782 Quarterly Variation (%) 2.1 per cent and last quarter’s performance by 7. Compared to the same period in the previous year (September 2012).549.8 million subscriptions during the quarter.117. the ratio of post-paid to pre-paid subscriptions stood at 1: 67. Despite the low proportion of post-paid subscriptions.4 percent. the pre-paid plans continued to dominate the market.2 2. This growth in post-paid subscriptions could be attributed to the ultimate flexibility and maximum convenience of uninterrupted service offered under this plan.5 Sep-12 30. The growth of mobile subscriptions is shown in Table 1.845.983 subscriptions up from 432.4 5. 1 Net Mobile additions refer to new subscriptions registered during the period. During the period under review. The quarter-on-quarter growth in total additions is shown in Figure 1. pre-paid service constituted up to 98. Table 1: Mobile Subscriptions Subscription Type Sep-13 Apr-13 30. this represented a 2.3 million.983 Subscriptions Total Mobile 31.432. surpassing last year’s level by 3.135.422 Quarterly Variation (%) 2. their numbers grew by 5. As observed in the previous quarter. During the quarter under review.2 per cent compared to the same period of the previous year.5 2.1 Subscriptions The number of mobile phone subscribers increased by 2.1 CELLULAR MOBILE SERVICES 1.5 per cent from the previous quarter to record 455. Operators’ Returns As indicated in Table 1.

Safaricom Limited.506 Jun-13 20.132. Table 2: Mobile subscription per operators Name of operator Safaricom Limited Airtel Network Kenya Limited Essar Telecom Kenya Limited Telkom Kenya Limited (Orange) Total Sep-13 20. Operators’ Returns Figure 2 illustrates the market shares for each of the operators as measured by subscriptions.1 per cent despite the increase in its subscriptions.6 -7.549.5 Sep-12 19.820. Operators’ Returns. 9 .094.208.6 2.018 2. During the quarter under review.221. Safaricom Limited and Airtel Networks Limited increased their market shares following an increase in their mobile subscriptions.3 per cent of its subscribers from the previous quarter. lost 9.113. Telkom Kenya Limited (Orange) maintained its market share at 7.3 3.719 3.618 5.279 30.5 per cent while the latter recorded a market share of 17.8 28.782 Annual Variation (%) 8.432.323 2.052.3 5.5 per cent while Telkom Kenya (Orange) had 3.1 percentage points to reach 8.301.298 3. Airtel Network Limited had 5.220 2.447 30. Safaricom Limited recorded growth of 3. Airtel Networks Kenya Limited and Telkom Kenya Limited (Orange) continued to demonstrate an upward trend in subscriptions.6 per cent. Essar Telecom’s market shared dropped by 2.Figure 1: Net Additions in Mobile Subscriptions Source: CCK.036 5. As indicated in Table 2. The former maintained the highest market share of 66.547 31.3 per cent growth in subscriptions.209 5.003.3 7.146.9 Source: CCK.6 per cent shares.996 3.6 2. On the contrary.5 -9.504.768.218.8 per cent during the period. Essar Telkom Kenya Limited on the other hand.422 Quarterly Variation (%) 3.

9 per cent down from 77.5 million in the last FY2012/13.7 million provided in the economic survey was revised in the new FY 2013/14 from 39.3 per cent recorded during the previous quarter. The quarter-on-quarter growth trend in the mobile penetration is shown in Figure 3.Figure 2: Percentage Market Share Subscription per Operator Source: CCK. Mobile penetration2 for the quarter under review dropped by 0. 10 . Operators’ Returns. Operators’ Returns 2 The population used of 40.4 percentage points to stand at 76. Figure 3: Percentage Mobile Penetration Source: CCK.

This growth was recorded on both mobile to mobile traffic (both on-net and off-net) as well as mobile to fixed network. the number of agents grew by 3.1 Voice Traffic The growth in mobile subscriptions influenced voice traffic during the quarter under review. the Mobile Number Portability (MNP) experienced a decline of 6.318.4. the quarter under review posted a growth of 4. voice traffic demonstrated an upward trend since the same quarter of the previous year to register an increase of 6.462 24.2 per cent to register 363 in-ports down from 387 recorded during the previous quarter. This was represented in a 30.466 agents recorded during the previous quarter. of Agents 91. Operators Returns At the same time.4 billion minutes up from 7. a growth of 68.0 per cent increase when compared to the same quarter of the previous year.2 Sep-12 217 Quarterly Variation (%) 67. the popularity in the use of mobile money transfer service has continued to grow as the number of subscriptions rose by 1. During the period under review.114.404 No.0 68. Similarly. 11 .1 billion minutes during the previous quarter.3 1.7 per cent.750 from 88. However.6 per cent was recorded.1 per cent during the quarter under review to reach 25. When compared to the same quarter of the previous year.8 million posted during the previous quarter. Jun-13 387 Quarterly Variation (%) -6.1.3 per cent when compared to the same quarter of the previous year as illustrated in Table 4. 1.409 Quarterly Variation (%) 30.2 Mobile Money Transfer Service As indicated in Table 3.750 88. Table 3: Mobile Money Transfer Mobile Money Transfer Sep-13 Jun-13 Quarterly Variation (%) 1. Table 4: Number of In-ports Period Sep-13 363 Number of In-ports Source: CCK.3 Mobile Number Portability Mobile Number Portability provides customers with a platform to switch to their preferred network without having to change the SIM card. this performance represented an increase of 67.7 Sep-12 19.840.684 54.1 per cent to reach 7. Operators Returns.6 Subscriptions 25.466 Source: CCK. Unlike the previous quarters which experienced a declining trend.1 3.4 Mobile Traffic and Usage Pattern 1.1 million up from 24.7 per cent to reach 91.

613 14.857 947.508.7 per cent to post 28.426.845.8 The total traffic received on mobile network during the quarter went up by a margin similar to that of outgoing mobile traffic at 4.5 billion minutes.8 per cent the previous quarter. Despite the declining fixed network subscriptions in the country.853. one of the operators offered its subscribers whose monthly usage was below Ksh 200 a 50 per cent bonus on top-up of up to Ksh60 per day.7 Own Network –Own Network Own Network to Other Mobile Networks Mobile Network to Fixed Network Total Traffic Origination (Outgoing) 6. This however represented a decrease of 2.As illustrated in Table 5.960.6 per cent when compared to the same quarter of the previous year. this represented a growth of 0.413 25.394. fixed to mobile network traffic grew significantly by 12.989.047 Own Network Fixed Network to Mobile 28. on-net traffic increased by 3.0 per cent during the quarter.250.665 7.325.825.859.241.468 Network Other Mobile Networks to 1.122.549.857 1. Table 5: Local Mobile Voice Traffic in Minutes Mobile Traffic Sep-13 Quarterly Variation (%) By Traffic originating (outgoing traffic) Jun-13 6. Compared to the same period in the previous year.1 Sep-12 Quarterly Variation (%) 7.834 7.000.069.053.800 14.468 954. Similarly.357 7. The observation in Figure 4 shows that on-net traffic has continued to dominate mobile voice traffic with the quarter under review posting 87.010 3.272.2 per cent of the total traffic. the enticing offers and promotions by the operators during the period may have encouraged mobile users to call more often or make longer calls.421.5 billion minutes which also contributed to the 7.892 3.7 per cent increase when compared to the same quarter of the previous year.272.3 12.931 Network Total Traffic Termination 7.043.915 6.043.508.027 12. Another operator discounted call rates to 12 .282.497 7.478.255.3 17.283 24.282.845.6 6.960. mobile to fixed traffic grew by 17.126.1 per cent to record 7. Operators’ Returns 6.446 (Incoming Traffic) Source: CCK.8 6.879. This growth could be attributed to low on-net calling rates as compared to off-net rates coupled with promotions and special offers targeting on-net activity.322 By Traffic terminating (incoming traffic) Own Network –Own 6.7 0. For instance during the quarter in review.7 4.8 percentage points in on-net voice.450.558 7.039 889. an increase from 6.6 7. Moreover.006.397.812. Low call cost charges and minimal terminating charges on the same network are likely to be the reasons behind high on-net traffic.6 7.1 6.011.2 13.6 per cent to stand at 6.3 million minutes.8 -2.826 7.039 943.184.7 1.305.0 4.

15 from 1st August 2013. The offnet traffic by Airtel Networks Limited stood at 54. Safaricom Limited recorded the highest voice traffic at 5.3 percentage points from the previous quarter to record 621 million minutes representing a share of 8. Airtel Networks which has continued to record high off-net traffic had 10.3 per cent of its total traffic volume which could be as a result of the new tariff launched during the quarter that allowed subscribers to call across all networks at a flat rate of Ksh. 500 and 1000 bundles. Another service provider offered on-net calls at Ksh 2 for up to 15minutes per day. with on-net traffic. 200.4 percentage points to stand at 79. Figure 4: Growth in Mobile Voice Traffic in Minutes Source: CCK.9 billion minutes. 2. off-net traffic also experienced a marginal growth of 0. a decline of 0. contributing a higher share of the traffic. During the period under review.2 Voice Traffic by Operator As illustrated in Table 6.2 percentage points to the total mobile traffic to stand at 12. gained 0. This was however. Essar Telecom too.4.8 per cent. the four mobile operators increased their voice traffic during the quarter under review which could have been triggered by friendly call plans by the operators following the reduction of call termination rates by CCK from KES 1. which has remained relatively high.44 to KES 1. Operators’ Returns 1.subscribers who had been inactive for a pre-determined period.3 per cent during the quarter.4 per cent thus recording 797 million minutes during the quarter under review.8 percentage points when compared to the same quarter of the previous year.1 per cent from 76. Telkom Kenya Limited 13 . and offered 50 per cent bonus airtime upon purchase of Ksh 100. Similarly.7 per cent shares up from 10. The market shares for Safaricom Limited gained 2.7 per cent shares recorded during the previous quarter.

498.466.476.0 519.886.7 331.538 9.161 5.983 63.252.000.987.668 45.765. 14 .6 minutes from 78.4 385.177 492.232 744.280.565.715 878.892 12. Operators’ Returns 1.510.886.4 per cent shares posted during the previous quarter.682.508 5.1 5.137 8. This was a decline compared to the same period of the previous year which recorded 3.523.033.911.166.7 Airtel Networks Kenya Limited 360.4.5 per cent to 79.439 77.863 144.903 31.010 76.370 413.970 1.4 46.342 1.070.2 5.491 316.9 56.652 79.502 281.600.092.067.694.383.548.320.110.987 142.069.181.817.967.172 797.943.917.150 8.023 152.6 Telkom Kenya Limited (Orange) 78.263.5 Essar Telecom Kenya Limited 468.1 Market Share (%) Source: CCK.219 1.5 percentage points to record 142 million minutes representing 1. Table 6: Voice Traffic by Operator Period Name of Operator/Indicator On-net Sep-13 Total Market Share (%) On-net Jun-13 Off-net Total Market Share (%) On-net Sep-12 Off-net Total Off-net Safaricom Limited 5.971 437.138 298.4 minutes recorded during the previous period.950.274 572.(Orange) gained 0.796 5.551 102.934 80.9 per cent shares up from 1.8 per cent growth.3 Minutes of Use As illustrated in Figure 5 the monthly minutes of use for each subscriber (MoU) increased by 1.997.143.275 155.521.3 427.690.664.127 621.830.187.132.602 10.374.143 10.2 674.

6 4.223 22.536.641 3.6 7.4 per cent shares posting 14.158 0.600.103.524 179.3 4.155 29.931.666 10.491.634.370.095.237 84.838 59.585.173 18. the market shares for all the operators did not experience significant change during the quarter as indicated in Table 7.4 Essar Telecom Kenya Limited 6.573.609 75.929.378 0. Table 7: Short Messaging Service per Operator Period Name of Operator/Ind icator On-net Sep-13 Off-net Total Market Share (%) On-net Off-net Total Market Share (%) Safaricom Limited 4.924.873.803 146. Airtel Networks recorded 3.3 billion posted in the previous quarter largely as a result of friendly SMS plans which allowed mobile users to enjoy unlimited text messaging at a discounted rate.873.749.695 14.472 0.110.4 million SMS representing a market share of 0.035 175.167 June-13 15 . Notably.Figure 5: Minutes of Use per Subscriber per Month Source: CCK.829.341 95.6 per cent during the quarter.299.6 Telkom Kenya Limited (Orange) 5.857.859 3.707 67.114.121.104 4.6 shares.194.840.053.643 5.8 million SMS during the quarter while Essar Telecom Limited had 29.772 95.5 per cent to register 5.340.7 Airtel Networks Kenya Limited 107.815 Total SMS 4. Operators’ Returns During the quarter under review.5 86.753.2 billion from 4.7 billion representing a market share of 95.853.411.146.398.510.941. a huge shift was observed in the mobile messaging market The volume of SMS increased by 19.5 per cent to reach 4. Telkom Kenya (Orange) registered 0.152 175.249.5 per cent shares to post 175.570.769.294 21.180. Safaricom Limited maintained the lead in the SMS market share with its number of SMS increasing by 19.634.700.780 4.163 4.7 million SMS during the quarter.4 4.361 0.178 28.985 13.

995.528.680 0.8 9.9 per cent as shown in Table 8.3 5. During the period under review.02 Annual Variation (%) -13. the volume of roaming-out3 voice traffic increased by 11. Table 8: Multimedia Messaging Service MMS Traffic Sep-13 Jun-13 MMS MMS per Subscriber per Month 2.086.374.03 Quarterly Variation (%) -11.On-net Off-net Sep-12 Total 800.578 1.6 906.0 per cent to reach 11. However. The number of roaming-in SMS declined by 10.248. there was a variation of 4.216.000 160.077. Multimedia Messaging Service (MMS) has maintained low uptake among users of mobile services.308 71.9 million minutes. In addition.746. whose billing system is predicated on the number of kilobytes sent hence making it more costly may have contributed to the low uptake of the service.3 (%) Source: CCK.4 per cent during the period to post 9.105.100. 3 4 Roaming out is traffic originated and terminated by subscribers of national networks as users of foreign networks abroad.9 per cent.841.952.3 million which represents an increase of 29.329.022 179.738 14.0 Source: CCK. In the quarter under review.721 12. there were 2. the relatively higher cost for MMS.0 million minutes down from 10.4.738 70. Operators’ Returns.554.198.gWhatsapp).013 90.551 1. Moreover.3 0.573 Market Share 80.244 3.9 -33.4 million minutes.3 Sep-12 2. each subscriber sent less than 1 multimedia message during the quarter which could be as a result of competition from other similar services such as over-the-top (OTT) messaging applications (e.2 per cent to reach 11.875.656.02 2. Similarly.593.989 . Operators’ Returns.4%. 1.4 Roaming Traffic Roaming traffic has remained relatively low over the period. The growth in roaming traffic is shown in Table 9.5 million messages recorded in the previous quarter representing a decline of 11. roaming SMS remained low compared to voice traffic with roaming-out SMS recording 10.1 million minutes recorded during the previous quarter.2 35. Roaming in is traffic originated and terminated by foreign subscribers as users of local networks 16 .705 872.255 25.2 million messages down from 2.975 0.638 0. Compared to the same period of the previous year.857 17. the volume of Roaming-in4 voice traffic grew by 22.403.

Operators’ Returns.585.Table 9: Roaming Traffic Roaming Traffic Roaming Voice Minutes Own Subscribers on Foreign Networks Sep-13 Jun-13 Quarterly Variation (%) 11.302 Network Source: CCK.7 per cent from 124 million minutes recorded during the previous quarter to 121 million minutes posted during the quarter under review.959.6 1.993 155.120 5.264 Mobile SMS Source: CCK.164.745 11.726 Local Network Roaming SMS .4.439 20.049 Mobile SMS International Outgoing 11. In contrast. this represented a growth of 68.012 Annual Variation (%) -22.313 16.Own Subscribers on Foreign 10.338. international outgoing traffic experienced a decline of 2. 17 .4 -22.4 International Incoming 154.858.062 29.2 per cent.470.097.5 International Mobile Traffic The country’s international mobile traffic has been on a declining trend with the quarter under review experiencing a decrease of 2.153. the volume of international incoming SMS increased significantly by 32.946 Quarterly Variation (%) -2.305 19.626 -31.977.642. Compared to the same quarter of the previous year.4 per cent to reach 11 million down from 12 million posted in the previous quarter.2 Sep-12 Annual Variation (%) 4.636 Mobile Minutes International Incoming 27.2 98.0 -2.621 Mobile Voice Minutes International Outgoing 121.661. The quarter recorded 11 million SMS down from 12 million SMS posted during the previous quarter.472.143.838.5 per cent to post 154 million minutes down from 158 million minutes recorded during the previous year.4 Sep-12 199. Operators’ Returns 9. The international mobile voice traffic and SMS are shown in Table 10.303. Similarly.310 Roaming Voice Minutes Foreign Subscribers on 11. During the same period.853 Networks Roaming SMS .404.885.773 -10.6 10.717.943.501 124.418.7 32.5 -2.745.4 11.804 10.073.Foreign Subscribers on Local 9.9 8.2 68.920.268 22. the volume of international outgoing SMS declined by 2.4 13.0 10.0 per cent to reach 27 million SMS from 20 million SMS recorded during the previous quarter.029.964 6.1 7.104 12. Table 10: International Mobile Traffic (Minutes) International Mobile Traffic and SMS Sep-13 Jun-13 158.

Compared to the same quarter of the previous year. This information will be updated once the operators submit their audited financial accounts after the lapse of their respective financial years.6 29.469 in the previous quarter to 209.8 per cent to reach 58.3 per cent.1. 5 The information on mobile revenue and investment will be updated every end of financial year to reflect the current status of the market.260 29.394 72.552* 90.5 Mobile Revenue and Investments Table 11 below shows mobile market revenues and investments as at June 2013.4 per cent decline was recorded. this represents a decrease of 15.0 Revenue (KES Millions) Mobile 33.436 9679 27.625 11346 11.508 116.827 34.8 per cent during the quarter to reach 150. (**) provisional Variation (%) Over 2008 60.264 lines posted during the previous quarter.6 17. Fixed terrestrial lines increased marginally by 0. Operators’ Returns. a 15. a decline of 16. The growth of fixed line is shown in Table 12. representing a decline of 3. Compared to same quarter of the previous year.640 104. the number of fixed wireless subscriptions declined by 4.5 2 FIXED TELEPHONE SERVICE 2.1 Investments (KES Millions) Source: CCK. Compared to the same quarter of the previous year. The decline in fixed line network is a setback in the growth of ICT infrastructure in the country. At the same time.126* 40. This growth was mainly contributed by operators offering the service through alternative technologies such as optic fibre. (*) includes Telkom Fixed Network Revenue and Investment.7 per cent.205 subscriptions recorded during the previous quarter.5 per cent was recorded.1 Subscriptions The number of fixed lines dropped from 216.749 lines up from 58.5 -14.339 in the quarter under review.590 27. 18 . Table 11: Mobile Revenue and Investment (KES) 5 Mobile 2012** 2011 2010 2009 2008 Variation Variation Variation Revenues (%) Over (%) Over (%) Over and 2011 2010 2009 Investments* Mobile 133.590 from 158.

a decline of 8.428. The decrease in fixed network voice traffic is mainly attributed to the declining number of fixed lines in the country thereby limiting accessibility and usage of this service.3% was recorded.405.585 3.0 24.838.9 per cent growth in fixed wireless to fixed wireless traffic was recorded from3.747 1.428.384 3.0 per cent to reach 22.205 Subscriptions Total Main Fixed Line 209.3 - 10.681.590 158.468 30.677 19.5 -15.469 Quarterly Variation (%) 0.350 -7.195.390 177.384 minutes from 3.118 traffic Source: CCK.686.6 million minutes during the quarter under review.940 248. The decrease in local fixed network traffic was mainly contributed by fixed to fixed voice traffic that reduced by 84.4 Fixed Wirelessfixed wireless 4. Compared to the same period of the previous year.6 million minutes. 216.339 Subscriptions Source: CCK.8 -3.3 35.3 per cent in the total number of fixed voice traffic from 30.Table 12: Fixed Network Subscriptions Fixed Network Sep-13 Jun-13 Subscription Fixed Terrestrial 58. Operators’ Returns.207* - Inter-network traffic Fixed to other Networks(Netwo 22.4 19 . Table 13: Local Fixed Network Traffic in Minutes Local Fixed Jul-Sep 13 Apr-Jun-13 Quarterly Network traffic Variation (%) Intra-network traffic Fixed-fixed 597. a reduction of 20.926 minutes posted during the previous period.503 22.3 -20. a 19.7 2.4 per cent during the period to record 597.3 Sep 12 70.9 million minutes during the quarter from 22.2 Fixed Network Traffic The quarter under review witnessed a drop of 7.9 million minutes to 4.976.4 -15.749 58.4 per cent was recorded. Operators Returns.926 -84. Compared to the same period of the previous year.8 -4. *Traffic includes fixed wireless-fixed wireless -8.1 million minutes.300 Quarterly Variation (%) -16.4 million minutes posted in the previous quarter to 28.264 Subscriptions Fixed Wireless 150. During the same quarter.911 rk voice providers) Total Local Fixed network 28.911. The growth in fixed network traffic is as illustrated in Table 13.838. Fixed network to other voice networks increased marginally by 1.9 Jul-Sep 12 Quarterly Variation (%) -94.907.

252.6 per cent growth.448 3.4 9.919.400.4 million minutes up from 4.1 million minutes up from 1.94 million from 3. The same quarter of the previous year however witnessed a reduction of 12.6 4.147. this was a decline of 7.1 per cent in international VoIP traffic. international outgoing fixed VoIP minutes grew by 9. The growth in international fixed line traffic is shown in Table 14.International incoming voice traffic to fixed network increased by 13. Conversely.389 -7.0 per cent decline when compared to the same period of the previous year.885 Network Voice traffic International Outgoing Fixed 4. the international outgoing fixed network traffic was recorded at 4.9 per cent during the quarter to reach 2.406.5 Jul-Sep 12 Quarterly Variation (%) -5. At the same time.4 per cent when compared to the same quarter of the previous year.1 20 .178 3.159 1.941.109.763 4.472. However.47 million minutes during the previous quarter. In the same way. Quarterly Variation (%) 13. Operators Returns.760.524 Network VoIP traffic Source: CCK. Table 14: Fixed Network International Voice Traffic Fixed Network Jul-Sep 13 Apr-Jun-13 Subscription International Incoming Fixed 3.9 million minutes recorded during the previous quarter.9 2.2 million minutes posted during the previous period representing a 3.173 -12.5 per cent during the quarter under review to record 3.426 Network Voice traffic International Outgoing Fixed 2. this was a 5.0 4.

1 6.519.7 Total Internet Subscriptions Mobile Data/Internet Subscriptions Terrestrial Wireless Data/Internet Subscriptions Satellite Data/Internet Subscriptions Fixed DSL Data/Internet Subscriptions Fixed Fibre Optic Data/Internet Subscriptions Fixed Cable Modem Subscriptions Total Internet Users6 6 11.580.436. the increase in mobile subscriptions during the period indicates that the new subscriptions did not subscribe to mobile data/internet usage or did not have internet enabled devices. this was a 41.1 per cent to reach 61.780 531 10.1 per cent decline to record 11.2 6.537 61.5 Sep-12 Quarterly Variation (%) 37. by 10 terrestrial wireless subscriptions and by 100 fixed DSL.162.3 0.055 12.169 749 11. Compared to the same quarter of the previous year. representing a decline of 41.4 0.340.8 41. The multiplier of 2 for mobile data/Internet users has been adjusted to1 as per the ITU recommendations. Moreover.278 subscriptions recorded during the previous quarter. the decline in data/internet subscriptions was partially as a result of the decline in Mobile data/internet subscriptions that recorded a drop of 6.0 -2.278 11.148 8. fibre optic and satellite subscriptions.065 17.5 million subscriptions down from 12.3 -27.1 per cent growth was recorded.842 47.671.378 Internet users is estimated by multiplying by 1 the number of mobile data/Internet subscriptions. During the quarter under review. the number of fixed fibre subscriptions increased by 30. As shown in Table 15.392 25 14.3 per cent.1 per cent increase. the number of fixed fibre subscriptions grew by 6. The satellite subscriptions have continued to record mixed growth over the period. This decline could have been as a result of the SIM card Registration audit carried out by the Commission that saw rationalisation in mobile/data subscriptions.337 11.197 subscriptions recorded during the previous quarter.282 1.578 23.4 per cent during the quarter.0 31. There is no scientific method of estimating Internet users. the Internet/data market recorded a 6.512 58.1 0.654.925 8.1 -6. a growth of 37. However.6 million subscriptions from 12. Expansion of fibre optic roll out and competition among service providers play a key role in the steady growth in the fixed fibre subscriptions.005 21.2 -19. Compared to the same quarter of the previous quarter.0 37. there were a total of 749 subscriptions down from 1. when compared to the same quarter of the previous year. for the purpose of this report the methodology adopted is borrowed from the Internet Market Study 2006. Similarly.432.197 25 19.3 3.1 DATA AND INTERNET SERVICE Internet/Data Service During the quarter under review. Table 15: Internet Subscriptions and Internet Users Internet/Data Subscriptions Sep-13 Jun-13 Quarterly Variation (%) -6.739 25 19.4 million subscriptions registered in the previous quarter.739 up from 58.3 million subscriptions posted during the previous quarter.308 12. 21 .553.3 -41.4 30.2 per cent to reach 11.

an increase of 31. Compared to the same quarter of the previous year. With regard to market shares as measured by mobile data/internet subscriptions.1 per cent down from 49.4 percentage shares to attain a market share of 14.3 per cent shares during the period. This decline was triggered by the decrease in internet subscription and the consequent reduction in internet usage in the country. representing a decline of 2. the population that had access to internet was recorded as 47.5 per cent. Essar too gained 0. the estimated number of internet users was recorded at 19.3 per cent while Telkom Kenya (Orange) gained 0.2 per cent shares from 5. the revision in the national population statistics in the economic survey to 40. The growth in internet access is illustrated in Figure 6. At the end of the quarter under review. 22 . Operators’ Returns The reduction in the number of data/Internet subscriptions led to a decline in the estimated number of internet users in the country. Safaricom Limited share declined by 2. By the end of the quarter under review. The market shares for mobile data/Internet market by operator are shown in Table 16.6 per cent recorded during the previous period.0 per cent shares recorded during the previous period.Source: CCK. Operators’ Returns.7 per cent was recorded. Moreover.4 per cent to reach 73. Figure 6: Estimated Number of Internet Users and Internet Penetration Source: CCK.6 million.5million in FY2012/13 was also a contributing factor to this decline.2 percentage points to register 5.7 per cent registered during the previous quarter representing a decline of 2.2 per cent from 75. Airtel Networks on the other hand gained 1.1 million up from 19.9 percentage shares to post 7.7million in FY 2013/14 from 39.6 percentage points during the period.

1 per cent.6 per cent posted during the previous quarter. Operators’ Returns Jun-13 9.016 Market Share (%) 75.481 795.1 Mobile Telephony Networks Limited 1. Table 17: Other Fixed/Wireless Internet Subscriptions by Operator Name of Operator Sep-13 Market Share (%) Wananchi Telecom Limited 39.2 Source: CCK.0 Jamii Telecommunication Limited 1.8 Iway Africa 2.6 7.7 Safaricom Limited 7.4 5. 23 .433 14. The growth in broadband subscriptions is shown in Figure 7.207 43. Jun-13 36. Wananchi Telecom maintained the lead with 43.3 Other fixed/Terrestrial wireless 714 0. Operators’ Returns.900 2.659.8 per cent from 21.8 3.513 614. a growth of 39. Notably.072 19.628 7.524 5.205 1.502 12.1 per cent shares recorded during the previous quarter.6 12.398.100 2.4 11. the first five operators account for over 90 per cent of the market share.2 Broadband Service The total number of broadband7 subscriptions dropped from 1.823 registered during the previous quarter to 1.718 11.3 Call Key Networks Limited 590 0. Liquid Telecom market share declined by 4.7 3.8 Access Kenya Limited 11.6 Telkom Kenya Limited 10.397.6 0.0 per cent shares from 39.155 7.0 per cent was recorded. registering a decline of 0.8 operators Source: CCK.597. gaining 3.480 73.731 1.1 1.995 1.8 per cent to reach 16.Table 16: Mobile Data/Internet Subscriptions by Operator Name of Operator Sep-13 Market Share (%) Safaricom Limited 8.2 Airtel Networks Kenya Limited 1.332.144 587 703 Market Share (%) 39.6 Tangerine Limited 260 0.0 2.411 10. Compared to the same quarter of the previous year.906.476.0 Liquid Telecom Limited 15.6 12.3 Telkom Kenya Limited (Orange) 844. The market shares for the first 10 operators are shown in Table 17.3 Essar Telecom Kenya Limited 599.900 1.718 7.9 percentage shares during the period.731 3.1 21.937 11.0 The level of market shares for other fixed/terrestrial wireless data/Internet subscriptions experienced marginal change for each of the first ten operators during the quarter in review.290 16.9 6.2 0. Broadband is defined as speeds greater than or equal to 256Kbps in one or both directions. 7 In this report.

834 862.5Mbps from 639.0 576.0 75.52 -2. 3.5 per cent in VSAT capacity to reach 623.880 0. * Revised Seacom Capacity from Jan-Mar and Apr-Jun 24 .52Mbps posted during the previous quarter.0 101. Compared to the same quarter of the previous year.960 40. the total bandwidth increased to 862.0 0.990 (Mbps)* Telkom Kenya Limited (EASSY) 122.7 SEACOM-International Internet 578.960 VSAT 623.970 119. During the quarter under review.5 355.880 122.850Mbps posted during the previous period. Compared to the same quarter of the previous year. the quarter in review recorded marginal drop of 2.960 0.6 0.880 Lion 2 40.400 578.0 0. Table 18: International Internet Available Bandwidth (Mbps) International Connectivity Bandwidth Sep-13 Jun-13 Quarterly Variation (%) Sep-12 Quarterly Variation (%) 86.0 122.52 639.Figure 7: Broadband Subscriptions Source: CCK. Operators’ Returns. Similarly.International Internet Capacity 119.186 Bandwidth (Mbps) Source: CCK.834Mbps from 862. a growth of 49.0 40.3 International Bandwidth The period under review witnessed insignificant change in the total amount of bandwidth available in the country.80 Total International Internet 862.850 0.400 0.2 per cent was recorded.970 0.000 Capacity (Mbps)* TEAMS .0 310.7 per cent was recorded. a noteworthy growth of 75.2 49. The growth of international Internet available bandwidth is shown in Table 18. Operators’ Returns.

8 per cent from Ksh5.95 219.680.1 Connectivity Bandwidth (Mbps) Source: CCK.900.0 59.8 billion recorded in 2011 to Ksh 7.870 1.329 3.898 3.1 356.914 3.8 62. Table 20: Data/Internet Revenue and Investment Data/Interne 2012 2011 2010 2009 2008 t Revenue and Investments * Data/Internet 7.9 billion in 2012 from Ksh 3.171 157.900Mbps representing a 41.595 Revenue (KES Millions) Data/Internet 3. Table 20 shows data on revenue and investments from data/Internet operators for the last five years.4 per cent of the total capacity recorded during the previous quarter.3 24.1 -94.4 billion recorded in 2011. Operators’ Returns.9 -70. Sep-12 Annual Variation (%) 29.1 356.277 7.The amount of used bandwidth increased by 1.8 per cent of the total capacity during the quarter compared to 41. Table 19: International Internet Connectivity Bandwidth (Mbps) International Leased Bandwidth Sep-13 Jun-13 Quarterly Variation (%) International Undersea Internet 360.3 per cent to reach Ksh 3.7 278.874.95 0.420 5.0 Connectivity Bandwidth Total International Internet 360.88 4500.0 14.7 39.4 billion posted in 2012.760 53.78 278. Investments increased by 14.171 Investments (KES Millions) Variation (%) Over 2011 Variation (%) Over 2010 Variation (%) Over 2009 Variation (%) Over 2008 25. 25 .1 per cent from the previous quarter to reach 360.4 29. * Note that revenue in data market is not inclusive of data revenues from mobile sector. Operators’ Returns.4 Revenue and Investment in the Data/Internet Market Data/Internet revenues grew by 25.34 Source: CCK.1 Connectivity Bandwidth (Mbps) International Satellite Internet 219.95 1.655 1. The growth in international connectivity bandwidth is shown in Table 19.424 2.640 2.

9 million while TV recorded 2.589 12.732 from 27. representing a 24 per cent growth. Compared to the same quarter of the previous year. Table 22: Average Broadcast Audience Television Average Monthly Number of Audience Per Broadcast Station Source: CCK. Table 21shows the number of registered domain names over the past one year. The National ICT survey carried out by the Commission together with the National Bureau of Statistics in 2010 revealed that there were 78.9 per cent.1% of urban population that own radio sets compared to 29.9 27.691 2.732 7. an increase of 7.3 million viewers during the quarter.2 25.1% in urban areas that own Television sets. On the contrary. Table 21: Period Number of Domain Names Sep 13 Jun-13 Mar-13 Dec12 Sep 12 Jun 12 Number of Domain Names registered Variation (%) 29. 25 TV channels had already been activated on the digital platform. the content for drama/plays.2% in rural Kenya and 66.764 3. In addition.085 17. respectively. During the quarter under review.374 registered in the previous quarter.1 24.143 domain names was recorded.500 In reference to Table 23. news.374 6.5 20.1% of rural and 83. registered domain names increased to 29. representing a growth of 7. Operators’ Returns Radio 16. radio broadcast posted the greatest number of average monthly audience which was at 16. This could be attributed to ease of access to radio owing to the increased number of radio channels especially vernacular. documentaries and discussions was mainly internally produced. a larger percentage of TV and Radio program content is internally (locally) produced.970. As shown in Table 22. the number of licensed radio stations and analogue television stations were 103 and 14. This has resulted in the wider listenership of radio as opposed to TV.983 9.6 22.0 Source: Kenya Network Information Centre (KeNIC) 5 BROADCASTING During the quarter under review.322. 26 . a great percentage of music and movies aired was foreign although a remarkable percentage of it was third party produced.4 ELECTRONIC TRANSACTIONS By the end of the quarter under review.

4 million letters registered during the previous quarter.678.Table 23: Percentage Program Content (Both TV and Radio) Programme Content Internally (Local) Third Party Produced Produced (%) (%) Music 12.7 -5.287. the total number of letters sent locally increased by 26. On the other hand.7 per cent from 529.9 6 6.3 per cent was recorded.790 404. Compared with the same quarter of the previous year.1 Movies 14.901 17.8 Source: CCK. Table 24: Postal and Courier Traffic Post and Courier Traffic Jul-Sep 13 Apr-Jun 13 Quarterly Variation (%) 26.9 8.420.2 59. Compared to the same quarter of the previous year. Compared to the same quarter of the previous year.8 9.8 per cent when compared to the same quarter of the previous year The postal and courier traffic is shown in Table 24.9 5.0 26.7 9.912 2.770 13.2 News 84. international outgoing letters increased by 30.327 items recorded during the previous quarter to 404.1 million letters up from 922. This growth could have resulted from dispatch of success cards during the national exams in primary and secondary schools.3 per cent during the quarter to 2.5 Number of Letters Posted Locally Total Courier Items Sent Locally International Incoming Letters* 16.783. The number of courier items sent decreased by 23.090 2. an increase of 5.2 per cent decline was recorded.9 Drama/Plays 72. a decrease of 5.3 per cent increase was recorded.090 items during the quarter under review.964 529.3 3.886 27 .9 per cent to reach 16.6 0.5 27.7 19.2 million letters down from 2. international incoming letters dropped by 5. a 5. 208 letters sent during the previous quarter. On the other hand. This represented a reduction of 28.5 Discussions 95.894 383.2 million recorded during the previous period.5 8.9 -23.3 Jul-Sep 12 Quarterly Variation (%) -5.8 million letters up from 13.859.6 Documentaries 81. Operators’ Returns Foreign (%) 59.3 -14.327 2.1 per cent to reach 1.291.1 POSTAL AND COURIER SERVICE Postal and Courier Traffic During the quarter under review.2 5.

the number of postal outlets has remained unchanged at 622.3 Postal and Courier Revenue and Investment As Table 26 indicates.199.2 Variation (%) Over 2008 -56.2 -33.8 Variation (%) Over 2009 43. The increase in subscriptions and subsequent increase in mobile voice traffic was mainly driven by the operators’ need to continue growing market shares thereby formulating products geared towards luring and retaining subscribers to their networks. Operators’ Returns.2 -72.1 1. Operators’ Returns.685.6 per cent in the number of courier outlets was registered. * Corrected data for Postal Corporation of Kenya -28.0 Mar-13 622 -1.815 4. Operators’ Returns.982 922.0 billion posted in 2011.0 per cent in 2012 to reach Ksh 51 million down from Ksh 222 million in 2011.8 Revenue 7 (KES Millions) 51 222 335 558 798 -77. The fixed network on the other hand has been on a downward trend as a result of declining fixed 28 .950 6.8 6.2 Number of Postal Outlets As observed over the last three quarters. This trend is likely to continue in the coming periods as operators seek to leverage on emerging areas such as e-Commerce which will undoubtedly raise growth prospects in the sector.670 Letters Source: CCK.0 Source: CCK.0 Investments (KES Millions) Source: CCK.90 -18.094 5. * Incomplete data from the operators Variation (%) Over 2010 4.208 30. Compared with the same quarter of the previous year.0 Jun-13 622 0.9 Dec12 634 -4.9billion up from Ksh 6. Table 26: Postal and Courier Revenue and Investments Post/Courier 2011 2010 2009 2008 Variation 2012* Revenue and (%) Over Investment 2011 4.9 Sep 12 667 0. investments fell by 77. 6. At the same time. the revenues for the postal and courier sector dropped by 18.7 -60.International Outgoing 1.255 13. Table 25: Number of Postal Outlets Period Sep-13 Postal Outlets Variation (%) 622 0. a drop of 6.2 7 CONCLUSION The quarter experienced mixed growth with increased mobile subscriptions but reduced data/internet market subscriptions. The number of postal outlets over the period is shown in Table 25.8 per centin 2012 to stand at Ksh4.

there was recorded decrease in subscriptions mainly attributed to a decline in mobile data/internet as well as satellite subscriptions. the prospect of this sector are likely to be raised in the near future owing to increased internet subscriptions and subsequent increase in capacity utilisation. bandwidth capacity decreased marginally to stand at 862.834 Mbps.900 Mbps. the utilised bandwidth capacity stood at 360. It is expected that emergence of new industries such as e-commerce will present a prime opportunity for the sector to make a turnaround and begin to record positive growth as it starts providing last mile delivery on online transactions. The postal and courier sector continued to decline.8 per cent of the total capacity. Published: September. At the same time. representing 41. However. The dwindling fixed network infrastructure in the country as well as the stiff competition from the mobile operators has pushed this service to the edge of the market particularly among households. In the data/Internet market.network subscriptions in the country. the steady growth in fibre subscriptions over the period may be the trigger for a positive growth in the coming period for this sector as operators continue to extend infrastructure. With increased infrastructure roll-out coupled with operators keenness to raise their market shares through formulation of products and services geared towards enticing subscribers. During the quarter. 2013 Author: CCK 29 .