Telecoms in East Africa should look to data for mobile growth
Mobile network operators in East Africa should look to data traffic growth and increased data prices as a means of arresting voice revenue decline in one of the fastest growing mobile market in sub Saharan Africa. Over the last few months, a couple of operators have been sending pricing signals to customers to help manage this finite resource. Unlike two years ago, there is a clear movement towards data usage among users in the four member states of East African community namely Kenya, Uganda, Tanzania and Rwanda where customers are using less mobile voice and SMS services. The loss of SMS service business is fatal to mobile operators and is highly attributed to the rise of over the top apps such as WhatsApp and iMessage that have become a hit with mobile subscribers in the region. Such apps have provided rich communications over a data connection, allowing customers to forgo SMS use. Customers have an economic incentive to use over the top apps...