COUP!! Safaricom Losses Mobicom to Orange

Telkom Kenya has pulled the biggest coup on Safaricom. It has entered into a national partnership with Kenya’s biggest mobile telecommunications dealer, Mobicom Group Ltd . Mobicom ended its contract with Safaricom just few days ago and many of the local media speculated that it was headed to Zain (Bharti Airtel). That was not to be as Orange just released a statement detailing that Mobicom is joining its distributorship.

Mobicom covers 85% of the Kenyan market with 42 outlets spread across the country. The firm was responsible for more than 10% of Safaricom revenue. Safaricom CEO, Michael Joseph has kept mum and has been avoiding the media on this issue which is so unlike him. Safaricom has 500 dealers compared to Zain’s 85 for 10.4 per cent of the voice market, Telkom Kenya’s 56 for 5.6 per cent and Essar’s Yu with 20 for 5.6 per cent

The announcement, which was made in Nairobi, promises to cause major realignments within the telecommunications due to Mobicom Group’s huge customer base that offers Orange the opportunity to grow its market share significantly. Funnily, Mobicom will continue selling Safaricom airtime in their fold until they exhaust the stock. So it will be interesting to see how the firm will manage the changeover.

Telkom Kenya CEO, Mickael Ghossien, who was upbeat on the business prospects said: “This deal promises Orange a quantum leap in terms of growing its market share and distribution network in line with its business strategy. This is a significant stride that is consistent with our brand promise of offering customers convenient access to our services on the back of a Ksh19 billion investment to make the infrastructure best in class.”

Part of the investment has gone into upgrading its fixed line infrastructure, improving its GSM and CDMA coverage, solidifying its supremacy in data services through its investment in both the TEAMs and EaSSY fibre optic cables backed by over 4,000 kms of terrestrial fibre across the country.

Ghossein added that this is line with our customer promise of offering reliability and value for money. ‘’We seek to position Orange as a truly integrated telecommunications  service provider as we plan to rollout more products among them Orange Money and 3G services before the end of 2010.”

The Mobicom Group Chairman, Paul Wanderi Ndungu, said their efficient logistical capacity, a dedicated and skilled workforce of over 400 staff, and a proven and tested distribution network will enhance penetration of the Orange brand in Kenya.

“The partnership with Orange, which is a global telecommunications brand will change the landscape of the telecommunications industry in Kenya forever”, said Ndungu.