Days ago we after Whatsapp was acquired by Facebook, they came out and announced on plans to launch free calls next quarter. Companies in the developing markets have seen significant drop in revenues after emergence of free application to application text and calls services which haven't been particularly dominant.
Safaricom gets its revenues from the two businesses in the following propotions.
Voice Revenue 63.3% of Total Revenues
SMS Revenue 9.6% of Total Revenues
If Safaricom does not strategize enough to take advantage of the data provision market plus diversifying into other services, this might see them suffer significant drop in revenues especially as banks make public of their intentions to aggressively compete in the mobile banking market. Possibly a repeat of the Telkom business.
Safaricom gets its revenues from the two businesses in the following propotions.
Voice Revenue 63.3% of Total Revenues
SMS Revenue 9.6% of Total Revenues
If Safaricom does not strategize enough to take advantage of the data provision market plus diversifying into other services, this might see them suffer significant drop in revenues especially as banks make public of their intentions to aggressively compete in the mobile banking market. Possibly a repeat of the Telkom business.
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