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Mobile warfare in Kenya

Picture: Kenya mobile operators Mobile warfare in KenyaWhenever a text message pops  in these days, I pray it is not more spam from the operator. Too often, it is.

Safaricom and Zain seem to have gone crazy with their sms advertizing, and there is no way to stop them! I have no idea what Yu and Orange are up to, but I doubt they are any better.

Mobile wars in Kenya have reached feverish temperatures, to the benefit, but also to the nuisance of the users. Sure, I’m thrilled that calling rates are coming down, but do they really have to send me messages about it every day?

Seemingly irresistible offers like “top up now, and get 100% bonus airtime” have been filling up message inboxes across the country for a while now. Of course, these offers are tricks with little real value, as the bonus airtime expires after a few days, and can only be used within the same network, or other limitations making the offer virually useless.  I spent 3,5 years setting up and advertizing such promotions, as VP Sales Africa in Vyke Communications, so I am only too familiar with the real value of such offers!

Customers aren’t stupid, though. Although people at first get impressed by such offers, they quickly see through them. The problem is that once all the providers start doing it, everyone gets caught up in a viscious cycle that it’s hard to break out from. Therefore, I expect the daily sms spam about “fantastic offers” and chances to “win millions” to continue for the foreseeable future.

The good news is that behind the facades of “fabulous” promotions, there is a significant real drop in calling rates as well. Finally, Kenyans are seeing the effects of the increase from 2 to 4 mobile operators! The ongoing teeth-and-claws competition is good news for the users after all, as calling rates have dropped radically. On Zain, intra-network calls are down to KSh 1 (€ 0,01), and KSh 3 (€0,03) to other networks.

What I really love, though, is the crazy drop in international calling rates (of which I am also being reminded almost daily by SMS).  USA, Canada, India and China is down to KSh 3 (€0,03) per minute on Zain, and no international destination costs more than KSh 30 (€0,3).

The other operators are likely to follow suit soon, and most likely rates on international calls will come even further down. In a development that has swept across the African continent, most mobile operators have dropped their charges on international calls down to flat rates of €0,15-€0,2.

During my time as VP Sales Africa in Vyke Communications, it was always a worst-case scenario materializing whenever that development spread to more African countries, as our business was based on providing international calls at lower rates than the mobile operators. Of course, that development was unstoppable across the continent, as liberalization, deregulation and tough competition became the mantras of every African government but a few.

Kenya is finally catching up on this development, and I expect international calls to be between KSh 15 and KSh 20 on all mobile operators within a year.

As the costs of mobile calls are being pushed downwards and margins are dropping, operators are still milking the market on internet connectivity, and that’s where I hope to see the next price war.

My other hope is that Zain and Safaricom will someday soon stop spamming me with text messages about their “amazing” promotions!

M-pesa. Cutting edge technology made in Kenya



Picture: M Pesa logo 300x150 M pesa. Cutting edge technology made in Kenya

M-Pesa - Cutting-edge technology made in Kenya

Until recently, cutting-edge technology was not something most people would associate with Kenya. That is changing.

It’s already been 4 years since Safaricom, the leading mobile operator in Kenya, launched their m-pesa service. The competitors have since followed suit, and today, virtually every Kenyan has a mobile wallet on their phone.

To pay for something is as simple as entering the recipients phone number, or selecting it from your contact list. Receiving money is equally easy.

Thousands of small outlets for m-pesa, as well as Zap and YuCash (similar services from the competitors, Zain and Yu) have sprung up over the past few years, creating a great amount of jobs in the process. These outlets also act as banks for those who don’t have regular bank accounts – that is, the majority of Kenyans.

While most high-end restaurants and supermarkets take cards, mobile payments are now the simplest way  of transfering amounts of up to €350. Any taxi driver, for instance, will gladly accept mobile cash, and happily so, as it reduces the risk of losing a day’s earnings in the event of a mugging.

For the low-income majority, and for micro-businesses, mobile cash truly represents a revolution, as it removes the risks connected with physical cash, and provides a safe and cheap option for making money transfers.

Interestingly, this technology was developed here, in Kenya, and is currently being exported to other African countries. Althoug revolutionary for the “bottom of the pyramid” segment, this technology is extremely useful  across the board, in all income groups.  Will we for the first time in modern times see cutting-edge technology being exported from Africa to the West?

The new Bauck.com

Bauck.com has now been re-born as a WordPress blog!

It all started back in 1998, when my professor Espen Andersen at the Norwegian School of Management encouraged his students to publish their assignements on a web site.

At the time I had a very simple 1-pager at one of those free services. Think it was Xoom or something like that..

Then, once I registered Bauck.com, the site was upgraded to a “sharp-looking” 4-page site, hard coded in Notepad. Since that time it has gone through numerous makeovers, with an increasing amount of content.

While living in Kenya (2002-2005), I got into the habit of uploading pictures from places I travelled, mainly for the sake of letting friends and family back home see what I was up to. When I stumbled across Google Analytics, I suddenly realised that they weren’t the only ones who loved the site. More than 2000 visitors monthly in the peak months, and lots of sites linking to mine!

Pretty encouraged, I started making some more content on a highly irregular basis.

The previous version of the web site was in static HTML code, and updating it was a bit of a hassle. Since I want to post pictures and updates on-the-fly from my India trip, I needed something that was quick to update. WordPress was one of the pre-installed Open Source apps ffrom my hosting provider, so all it took was to find and customise a nice theme, and voilà! Picture: icon wink The new Bauck.com

Most previous pages and pictures have been ported over to the new site, and more updates will (hopefully) come at a more regular basis from now!

Well, what are you waiting for? The site is all yours! Click, read and enjoy! Picture: icon smile The new Bauck.com