Safaricom Launches HSDPA Service in Kenya

Kenya's largest mobile operator, Safaricom has launched a HSDPA upgrade on its network in the coastal city of Mombassa - offering speeds up to 72.Mbps. The company said that it has invested Sh1.8 billion (US$27.5 million) on the network upgrade.

Safaricom Chief Executive Officer, Mr Michael Joseph said "The 3G technology will enable us offer our subscribers within the current coverage area, a wider range of more advanced data and voice services while achieving greater network capacity through improved spectral efficiency,"

The company is targeting landline customers for their internet connection with an aggressive pricing tariff which starts as low as Sh1,999 (US$30.55) per month and runs up to Sh10,000 (US$152.80) per month.

The Kenyan government recently sold a large stake in the company in East Africa's largest ever floatation. However, since the shares started trading on the Kenyan stock exchange, concerns about retail investors taking out bank loans to pay for their shares has lead to spates of panic selling. The shares sunk to a new low of Sh4.95 earlier this week although they later recovered. The shares were sold to Kenyan investors for Sh5 each (Sh5.5 for overseas investors).

Safaricom now comprises some forty percent of the volume of the Nairobi Stock Exchange after the 10 million shares sold by the government.

The Kenyan government now owns 35% of Safaricom, 25% has been floated on the stock exchange and 40% will be held by Vodafone Kenya Ltd - which in turn is 87.5% owned by Vodafone Group and 12.5% owned by the mystery company, Mobitelea.

Posted to the site on 15th August 2008