Airtel in a move for fresh price against rival Safaricom

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Airtel stages a new price war against its rivals as it set to boost its market share locally.

According to data from the regulatory, Airtel share stood at 29.2 percent in three months to the end of 2019 compared to Safaricom’s 67.1 percent.

In a briefing on Wednesday, Airtel Africa said it succumb to its rival pricing practices that have pushed it to charge lower prices on both data and voice.

“In Kenya, where we are a small player, our prices will continue to be a lot more aggressive than those of the leader, and we will try to keep that difference going forward,” said Raghunath Mandava, Airtel managing director on Wednesday.

“The wider the market share gap like is the case in Kenya, the wider the pricing gap with the leader. Once the share gap reduces, then we will begin to see the pricing move closer,” he added.

Airtel offers the daily Sh10 for 100 minutes for airtel to airtel line and Sh2 a minute to make calls to other networks.

Safaricom, on the other side, charges between Sh3.86 and Sh4.30 a minute for the on-peak calls and Sh2 a minute between 10 pm and 6 am for off-peak calls.

Apart from the war on data and voice, the mobile money market is still a challenge to Airtel. Safaricom has been seen to dominate by the use of its M-Pesa, which has a market share of 98.8 percent.

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Anthony Kiratu is the Founder of Finsolutions. He is a financial analyst with over 5 years experience in research, investment advisory, valuation and financial modelling. Anthony is a member of the Institute of Certified Investment and Financial Analysts and Institute of Certified Public Accountants of Kenya. He is passionate about development of African Capital Markets through training of investors and dissemination of information for sound financial and investment decision making process. He is also a part-time lecturer in the Certified Investment and Financial Analyst course in the subjects of International Finance, Portfolio Management, Equity Investment Analysis, and Fixed Income Securities. Email: anthony@finsolutions.co.ke Contact: +254 780216631

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