Safaricom’s Dilemma with Andrea Bohnstedt & Nyagaka Ongeri

AppDate Yourself

I have in the past one year written 3 articles (Article 1, Article 2 & Article 3) arguing why Mobile Operators should have entered the App space a long time ago. This is essentially because Kenya has proved itself to be uniquely innovative in developing mobile applications/solutions that actually work and generate revenue.

So when Zain lowered its call rates to all Kenyan networks it opened the pandora box placing mobile applications and data at the center of competition in the Kenyan Mobile Space.

Join Andrea Bohnstedt and Nyagaka Ongeri in this very insightful dicussion about Mobile Application, Data and Revenue Generation.

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I would only add that individuals and companies need to find a way to mesh Mobile Service (like SMS) and Web Applications to allow Content Creation that would ultimately create advertising space on the Kenyan Internet.

That is what we at Whive.com have done.

Have a look at our live applications which all are all partly SMS Based.

Consensus has been that Safaricom has largely behaved like a big bully “stealing” ideas from Kenyan developers or behaving in a manner that is detrimental to the Kenyan Mobile ecosystem.

Whether the above claim is true or false momentum is clearly on Zain’s  side with almost everyones attention including Developers shifting towards  it.

It may be true that middle aged voice consumers may have in the past been the main revenue source but the shift towards data consumption by Kenya’s youth with drive profits in the future.

The Mobile Operator which convinces us to share revenue by giving them our Mobile Apps and sharing advertising revenues will win the war.

This is a HUGE opportunity for everyone especially if we let market forces run their own course…

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Electronic Money Wars: Zain vs Safaricom

Safaricom CEO Michael Joseph

Safaricom CEO Michael Joseph

Zain has recently launched international transfers (Zap Money) similar to western union that allows individuals to sent money from international accounts to local mobile phones in Kenya. Though this technology is a prospective game changer for e-commerce in East Africa, it remains to be seen whether mobile phone users will be ready to switch to Zap from the more popular MPESA.

However this is also bad news for money exchange websites such as mamamikes which been for years been acting as intermediaries for Zain/Celtel airtime as they are like to loss significant amounts to the ZAP service.

However local ecommerce sites such as BabaWatoto should be able to leverage their epayments using this system and increase the number of exports.

Safaricom which succesfully introduced Mobile money in Africa will have to step up their game and allow access to the API for development of similar intermediary tools or alternatively start the international money transfer service.

By restricting access of their API to public developers they blocked young and geeky Kenyan programmers from rolling out a myriad of applications that can increase competition and therefore create more jobs and a new mobile economy.

This policy may in the end make the difference in the competitive war between Zap and Safaricom.

Let the games begin…

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