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Airtel Kenya launches revamped data bundles at 50% discount to Safaricom

    Tracy Kivunyu
    Tracy Kivunyu

    Equity Research Analyst, Telecoms

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    Tellimer Research
    10 December 2019
    Published byTellimer Research

    Airtel has launched revamped mobile data bundles at a 50% discount to Safaricom's bundles, while also matching Safaricom’s pricing for no expiry bundles that were launched a little over a month ago. This competitive pricing environment could delay mobile data recovery.

    Airtel Kenya yesterday launched data bundles with no expiry, matching Safaricom's move of a month ago. In addition, Airtel revamped its limited mobile data bundles, placing its pricing at a 50% discount to Safaricom's (on which we have a Hold) data bundles in a bid to gain market share.

    Table 1: Comparison of Safaricom and Airtel 30-day expiry mobile data bundles 
    Price point in KESSafaricom data bundleAirtel data bundle
    5002.5GB5GB
    10005GB12GB
    200015GB30GB
    300025GB50GB
    Source: Company filings

     

    Referencing reported statistics from the Communications Authority (CA), Safaricom has lost 10 ppts of mobile data market share over the last two years to March 2019. While there has been notable stability in subscription market share, we remain concerned that Airtel's sustained price wars may delay mobile data recovery.

    Table 2: Market share by subscriptions 
    Subscriber market shareJun-18Sep-18Dec-18Mar-19Jun-19
    Safaricom65%64%63%62%63%
    Airtel21%22%23%26%25%
    Telkom9%9%9%8%8%
    Source: CA statistics
     
    We maintain our forecasts for Safaricom as we monitor the customer reaction to this offer.