Safaricom banks on new spectrum to deepen its 4G services

Safaricom CEO Bob Collymore.

Leading network operator, Safaricom, has stated it will extend its 4G network countrywide once its application for a new frequency is granted by the Government.

This comes amid opposition from its competitor, Airtel Kenya, which has questioned the basis upon which the Communications Authority (CA) was using to allocate the 4G broadband spectrum to Safaricom.

“We launched a 4G network in December last year that will enable our customers to experience super-fast broadband and mobile data offerings and we aim to have 80 per cent coverage for 3G nationwide even as we continue to roll out 4G network beyond Nairobi and Mombasa,” explained Safaricom boss Bob Collymore.

The CA two weeks ago invited members of the public and interested parties through a gazette notice to give their views before it officially grants Safaricom 800HZ frequency. The operators had submitted application to operate on the frequency.

“The authority wishes to notify the general public that any person, natural or legal, desirous of making any representation on or objection to the grant of such license mentioned above must do so by a letter addressed to the CA director general with a copy of the same to the applicant within 30 days of this notice,” read the notice signed by CA’s Director General Francis Wangusi.

Speaking on the sidelines of the company’s annual general meeting Thursday, Collymore said the company had not received any formal complaints from any quarters on its application despite reports in sections of the press about Airtel’s objection to the company getting additional spectrum.

With falling earnings from voice, mobile service providers in the country have been forced to increase their service offerings for data and money transfer, a segment that has emerged as the new battleground to grow their profit margins.

Data from Safaricom’s recent financial results indicates the company’s revenue from voice grew by six per cent, up from the Sh41 billion recorded in 2014 to Sh43.7 billion recorded in 2015.

Revenue from non-voice services, which comprise M-Pesa, mobile data, fixed services and SMS on the other hand grew by 21 per cent during the same period.

Safaricom has further splashed Sh12.37 billion on its network and capital infrastructure in the first half of 2015, reflecting an 18 per cent jump over a similar period in 2014.

If Safaricom’s application for the frequency is granted, it will be able to offer a better package to its consumers, including high-speed Internet that would allow live streaming of audio and visual content through broadband-based TV channels.