Safaricom brushes off threat from new entrants
What you need to know:
- Safaricom’s chief executive says he is "not worried" about mobile virtual network operators even as his firm battles to limit their options on several fronts.
- No plans to reduce M-Pesa tariffs even as new rivals enter the mobile money arena, Mr Collymore says, predicting there will be no price wars even if MVNOs get foothold in company network.
Safaricom’s chief executive says there are no plans to reduce M-Pesa tariffs even as new rivals enter the mobile money arena and gain access to the company’s agent network.
Bob Collymore played down the anticipated impact of three newly licensed mobile virtual network operators, including an Equity Bank subsidiary whose overlay SIM card technology his firm opposes.
“I don't anticipate a mobile money price war,” he told journalists and investors recently in an online chat-room session. “Don't forget that some of our competitors already offer free transactions.”
Mr Collymore added he was not worried about losing customers to the new entrants either.
“Customers have stayed with us because of the total proposition, which includes network size, coverage, speed and reliability,” he said.
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