In order to grow, Kenyan companies should learn Safaricom’s innovative strategies

In order to grow, Kenyan companies should learn Safaricom’s innovative strategies

By MUSYOKA NGUI

Safaricom logo

After Safaricom announced a 38 per cent jump in its profits which amount to KSh. 32 billion it not only went ahead and rolled out digital television package but also stamped its authority in the telecommunications sector in which it leads.

Safaricom is different from other telcos since it has diversified revenue from the traditional voice calls and messaging tariffs to mobile money transfer popularly known as MPESA and now it has pulled a first by expressing its interest to venture into the digital television communications sector.

Safaricom might be the answer to the acrimonious digital migration that pitted leading broadcasters against the government earlier this year.

The largest mobile phone operator in Kenya is buoyed by high mobile phone penetration in Kenya that will enable it to roll out 3G coverage to 75 per cent of its network by end of 2015 from the current 57 per cent. It seems the future of access to broadcast content is in the hand held devices.

Safaricom is expected to reach estimated 2.4 million households of the 3.2 million that enjoy digital broadcast currently. Customers will enjoy access to free to air TV stations and up to 6 GB monthly data bundles.

Big Box

Additionally, homes with digital broadcasters will enjoy Internet data bundles, Wi-Fi and affordable television content courtesy of Safaricom Big Box, the flagship set-top box.

There have been claims by competitors that Safaricom is monopolizing the telco industry but the fact that it shares infrastructure like base stations, spectrum and MPESA agents with its rivals vindicates Safaricom.

For Safaricom the numbers are looking good g iven about 16 million Kenyans are connected to the internet. For that reason it has pulled several firsts including pioneering both 3G and 4G networks. It is laudable that the firm ploughed back staggering KSh.33 million on infrastructure which includes over 2000 km of high speed fiber network.

Study Safaricom Model

As the most profitable company in the region, Safaricom has succeeded in setting the pace in the corporate world. To earn a reputation of Safaricom’s nature companies must adopt to changes in technology by tapping to the exciting and transformative creativity which entail coming up with competitive brands customers can buy. No amount of blame that competitors level against Safaricom will change anything. The negative energy should be channeled to thinking how they can come up with more innovative brands to challenge Safaricom. At the moment they better study its model of success.