Dotsavvy’s Youth Entrepreneurs of the year award in the KIM KABA awards was picked up today in the East African Standard. Here is the link to the full story.
Monthly Archive for October, 2008
Here is a great advertising age article I picked up on the future of mobile applications and their significant relevance to the future of marketing and engaging brand experiences. Its amazing how the future is arriving and what the implications of such developments will have for Africa’s digital marketing landscape - especially considering that its the fastest growing mobile market in the world! I dread for the ad agencies, companies and brands that do not take heed! Like William Gibson, the famous author who quoted the term cyberspace said, “the future is already here, its just not very evenly distributed.”
This past Friday the 24th October 2008 at the inaugural Kenya Institute of Management’s (KIM) Kenya Annual Business Awards (KABA) Gala Night, Dotsavvy’s co-founders’ Robert Koech and I jointly won the best youth entrepreneur of the year award. This special category award recognizes young entrepreneurs who have managed to build a successful small and medium sized enterprise (SME) in Kenya. The award also came with a generous cash prize donated by the Chandaria Foundation in Kenya. KABA was set-up by KIM as an initiative to recognize well-run and successful SME’s throughout Kenya.
The KABA award is undoubtedly a key milestone for us since its the most significant recognition to-date that we have ever received for our work at Dotsavvy. This would not have been possible without our fantastic team, our families, clients, strategic partners and other supporters who have been by our side all the way through thick and thin. Thank you all and we will endeavour to reach even higher heights for Dotsavvy in the coming years.
McLaren’s Lewis Hamilton won the China Grand Prix in practically flawless form today taking his wins in the 2008 Formula 1 season to a total of 5. This gives him a total point haulage of 94 compared to Ferrari’s Felipe Massa’s 87, who is still in contention to win the championship after he came in second to Hamilton in China. This is the same gap of 7 points that Lewis had in the 2007 season going into the final race when Ferrari’s Kimi Raikonnen won the Brazilian Grand Prix, and the overall championship. So its somewhat ominous that history is almost exactly repeating itself!
The last race of the 2008 Formula 1 season is set for Sunday the 2nd November at the Brazilian Grand Prix in Sao Paolo. This race will set the stage for the winner of the 2008 championship. It will also be Felipe Massa’s home race and he will no doubt be pushing for a home win with the ever vibrant Brazilian crowd. However, Hamilton needs to only come in 5th on race day to win the championship , even if Felipe Massa wins the race. Such a ragged range of possibilities, its not hard to imagine that both drivers (and their teams) will use every tactic in the book to win the championship with so much at stake. As usual, I’m routing for Hamilton to win so game on with crossed fingers!
This weekend at the Chinese Grand Prix, destiny will possibly serve the penultimate race of the 2008 formula 1 championship. Either McLaren’s Hamilton and Ferrari’s Massa could possibly win the championship depending on how the race pans out. Its been a roller coaster season no doubt! Crashes, dodgy driving, and questionable penalties by race stewards have all made for quite a cocktail. Its been just as exciting as last year’s season when Hamilton practically threw away a guaranteed championship as a rookie.
This year, Massa has demonstrated the speed of a future Formula 1 champion and has made the current champion team mate Kimi Raikonnen look somewhat pedestrian. Such is the game that is Formula 1 – one day here, gone the next, and don’t we love that! We have seen the myriad champions made and the painful losses where we ask ourselves what could have been. I started supporting Lewis Hamilton from the day he first drove in Formula 1 at the season opening Austrailian Grand Prix – and what I drive he gave! Showing us the promise and the possibility. Thereafter, he was almost always on podium in every race throughout the season. This year, once again, Hamilton has not disappoint! He is once again on the cusp of glory and as I write with bated breath, he could actually win this weekend, having already notched the best times in the first two practice sessions. However, at times, I have lost faith and even this past weekend at the Japanese Grand Prix he almost knocked himself out of the race at the start by driving in an uneccesarily rough manner!
At the same time, I have lots of respect for Felipe Massa, who has grown by leaps and bounds this season and by all means is equally deserving of the Formula 1 championship crown – non withstanding the fact I have NEVER supported Ferrari but do also respect them immensely for their super performances. I guess you could say that Ferrari in their own way “own” the heart and soul of Formula 1 as the most archetype racing team – pure pedigree that lives to race, and win.
Massa has shown a maturity on the track this season and barring several incidents where he was let down by his team, especially the pit stop incidents involving the Ferrari “traffic light” system. In principal, Massa could even have wrapped up the championship by now. For sure, whatever the outcome of this season, Ferrari will need to spend sometime on the drawing board to figure out what mistakes they made and how they can improve on them next year, as well as subsequent seasons. This will be especially important since it could already have cost them the 2008 championship even as they consistently had the fastest cars in every race.
In the final analysis, the game is on and destiny awaits both Hamilton and Massa. I’m routing for Hamilton but a part of me will be quietly happy if Massa wins too. Depending on the outcome of this weekend, the championship, which Hamilton leads by 5 points at this juncture, could either be won or it will go to the wire at Interlagos in Brazil. Either way, I am riveted and enjoying this Formula 1 season at the edge of my seat!
Tsk Tsk. It had to happen. It was only a matter of time. The empire had to strike back! Safaricom, Kenya’s largest mobile network has just launched an offer that rewards its customers with incrementally lower calling and sms rates for larger airtime top-ups. This is an obvious counter-move to Orange Kenya and Zain Kenya who recently announced highly competitive tariffs and offers to win more subscribers for their mobile networks. The latest Safaricom offer has already earned a nickname – “Rudi”, which means “return” in kiswahili. The nickname is interesting in that it is the opposite of Zain Kenya’s “Vuka” tariff which means “to cross” or “move away” in Kiswahili.
I do not have the official word on the new Safaricom offer and it has’nt event come out in the media yet so the authenticity of the following information obtained from a posting on the Skunkworks Kenya mailing list needs to be verified. Whatever the case, once again, its the Kenyan consumer who is winning! Let the tariff wars continue! —
Dear all,
Safaricom is pleased to introduce Jibambie- Choose your Call Rate promotion. The promotion will run for 8 weeks starting from 16th October,2008 to 14th December, 2008. Pre Pay subscribers will therefore enjoy discounted call rates and SMS rates based on the value of their top-up.
Promotion mechanics
To enjoy the promotion and choose the discounted Call Rates of choice, Pre Pay subscribers will receive discounted call rates based on the value of their top-up as per the table below. Special Jibambie Vouchers will be used therefore the old vouchers will not qualify.
| Top up Value (Kshs) | On- net Voice Call Rate (per Second) | On- net SMS |
| Bamba 20 |
Kshs 8 |
Kshs 3.50 |
| Bamba 50 |
Kshs 7 |
Kshs 3.50 |
| Bamba 100 |
Kshs 6 |
Kshs 3 |
| 250 |
Kshs 5 |
Kshs 3 |
| 500 |
Kshs 4 |
Kshs 2 |
| 1000 and above |
Kshs 3 |
Kshs 2 |
Note: Calls to local networks will cost Kshs 15/-, SMS to other local networks will cost Kshs 5/- SMS to international networks will cost Ksh 10/-
Summary of Business Rules
1. The promotion is only available on Pre Pay and excludes the following Pre Pay tariffs – M-PESA Prepaid and Simu Ya Jamii
2. The promotion will give subscribers discounted on-net call rates based on the value of their top-up
3. The participating airtime denominations include Bamba 20,Bamba 50,Bamba 100, 250,500 & 1000 and all Electronic Voucher Distribution (EVD) PIN-based denominations including 20,50,100,250,400,500,800,1000,1200,2500, 5000 & 10,000.
- Standard Chartered Electronic vouchers,i.e. 400,800 & 1200 will enjoy discounted call rates the same as 250,500 & 1000 respectively
- EVD voucher for 2500,5000 & 10,000 will enjoy the same discounted call rates as Ksh 1000/- top-up
4. The discounted call rates will be communicated on the card face and also subscribers will be notified via top-up response messages of the discounted call rate they are enjoying. (Plus Tariff Rate)
5. The discounted call rates will be determined by the last qualifying top-up e.g. if one had topped up with a voucher of 250/- and was calling at 5/- per minute, if they top up again with a Bamba 100 they will no longer be charged 5/- but 6/- for on-net calls.
6. Any airtime balance at the time of a qualifying top-up will enjoy the discounted call rates e.g. if a subscriber had 50/- remaining in his account and he tops up with 20/- he will have a cumulative balance of 70/- but will enjoy discounted rates of 8/- per on-net call as the 20/- is the valid promotion top up.
7. The discounted call rates will apply throughout the day for the entire duration of the call.
8. Bonga Points accumulation will apply as per existing terms and conditions.
9. PIN-based third party top-ups are included and the discounted call rates will accrue to the MSISDN receiving the top-up and not the one originating.
10. Sambaza, M-PESA,Ongea24/7,PayM8 and other PINless top-ups will NOT qualify for the discounted call rates. E.g. if a customer topped up with a card of 20/- they will make discounted calls at 8/- per minute. Should someone Sambaza 80/- to them,their discounted call rate will not change as they will still make calls at 8/- per minute despite their new balance being 100/-
11. During the balance enquiry via SMS/USSD the information displayed will indicate the Plus Tariff name as follows:
a) Plus 20
b) Plus 50
c) Plus 100
d) Plus 250
e) Plus 500
f) Plus 1000
Those who do not qualify for the Jibambie Promotion due to the method of top up (e.g. Old vouchers or PINless top ups) can continue to enjoy the Good Morning/Evening promotion. However once they top up they will be moved onto the Plus tariffs based on their top up value.
—
Over the last few of years, Kenya’s Internet Service Providers (ISPs) have developed broadband offerings for the home market. This article is a objective comparison of the different offerings in the marketplace, and how they match up. More specifically, this comparison ONLY includes broadband bundles that have a flat rate monthly billing model:
Africa Online Kenya.
This emerging market was first tapped into by Africa Online with their InfiNet product. InfiNet uses a wireless broadband technology that is quite different from WiMAX. InfiNet is comprised of the InfiNet Pro, InfiNet Classic and InfiNet Lite bundles:
InfiNet Pro
—
- Up to 256 Kbps speeds (Max)
- 5 Free mailboxes
- Interactive Anti Spam
- Anti Virus for emails
- 24 hrs help desk service
- Flat rate for unlimited access
- Monthly Charge of Kes. 19,999.00 + 16% VAT
- (Kes. 23,198.85 VAT INCLUSIVE)
InfiNet Classic
—
- Up to 128Kbps speeds (Max)
- 3 Free mailboxes
- Interactive Anti Spam
- Anti Virus for emails
- 24 hrs help desk service
- Flat rate for unlimited access
- Monthly Charge of Kes.. 7,999 + 16% VAT (Kes. 9,278.85 16% VAT Inclusive)
InfiNet Lite
—
- Up to 128 Kbps speeds (Max)
- 2 Free mailboxes
- Interactive Anti Spam
- Anti Virus for emails
- 24 hrs help desk service
- Unlimited email 24/7
- Unlimited Internet Access from 7pm to 7am during weekdays and 24/7 during weekends and gazetted public holidays
- Monthly Charge of Kes. 3,447.00 + 16% VAT (Kes. 3,999 16% VAT INCLUSIVE)
NOTE: All of Africa Online’s bundles have a one time installation charge that includes equipment of Kes. 15,999.00 (inclusive 16% VAT)
AccessKenya has been focussed on the Corporate and SME market segments since inception. Therefore, having done some market research, AccessKenya established that there was a large and underserved market for broadband internet services in Kenya’s homes. Therefore, as a result, AccessKenya launched its wireless home offering, Access@Home. The product is comprised of two bundles, premium and value:
Premium:
—
- All day ( 7 am – 6 pm ) 32 /32 up and downlink
- All night ( 6pm – 7 am ) 64/256 up and downlink
- All weekend ( Saturday 1 pm – Monday 7 am ) 64 /256 up and downlink
- Monthly cost : Kes. 6,000.00 plus 16% VAT
- One off install is Kes. 12,500 plus 16% VAT
Value
—
- All day ( 7 am – 6 pm ) 32 /32 up and downlink
- All night ( 6pm – 7 am ) 64/128 up and downlink
- All weekend ( Saturday 1 pm – Monday 7 am ) 64 /128 up and downlink
- Monthly cost : Kes. 4,000.00 plus 16% VAT
- One off install is Kes. 12,500.00 plus 16% VAT
NOTE: Free service features for both value and premium packages include, 3 free email addresses, round the clock customer support, anti-Virus & anti-Spam (inbound and outbound, equipment includes wireless unit, UPS and external antenna (if required).
Zuku is the the latest entrant into the home broadband market. Zuku, a product of Wananchi Online, offers bundles for the home, SOHO and SME markets. Zuku uses WIMAX wireless technology. For purposes of comparison, I only reviewed their ProSurf and SuperSurf bundles as below:
ProSurf
—
- 256Kbps unlimited connection
- 5 Free Mailboxes
- Kes. 2,999.00 per month
- Installation at Kes. 5,800.00
- Free WiMax Equipment
SuperSurf
—
- 512Kbps unlimited connection
- 10 Free Mailboxes
- Kes. 5,999.00 per month
- Installation at Kes. 5,800.00
- Free WiMax Equipment
Orange Kenya has also launched prepaid and postpaid home broadband bundles. For purposes of comparison, I chose their entry-level Broadband Plus and mid-range Broadband Turbo bundles as below:
Broadband Plus
—
- unlimited connectivity
- up to 256kpbs downloads and 128kpbs uploads per month
- 60 web SMS included per month on Telkom network
- five mailboxes with 500MB each
- virus and spam filters
- message alerts
- parental control
- one dynamic IP address
- hour customer service
- Kes. 5,990.00 per month + livebox for Kes. 10,990.00, set up is free
Broadband Turbo
—
- unlimited internet connectivity
- up to 512kpbs downloads and 128kpbs uploads per months
- 120 web SMS included per month on Telkom network
- 10 mailboxes with 500MB each
- message alerts
- one static IP address
- 24 hour customer service
- domain hosting
- Kes. 10,990.00 per month + livebox for Kes. 10,990.00, set-up is free.
Conclusion
From all of the above, where price and value is concerned, it would appear that Zuku has the best broadband bundles all in all. However, Africa Online and Access Kenya have been renown over the years for giving guaranteed bandwidth and high quality services. Clearly, Africa Online is the most expensive comparatively. Orange Kenya seems to have a fairly competitive offering and is probably closest to Zuku. The only way to reach a truly conclusive comparison would be to test all of the above services concurrently to establish the best one(s) in terms of price, speed, customer service and value-added services.
In an earlier post, I talked about the coming telecoms storm in Kenya. As I write this email, the first signs of an all out mobile network tariff war is underway.
To start with, Safaricom launched its Ongea tariff with a flat rate of Kes. 10.00 per minute for Safaricom to Safaricom calls, all day and night as well as SMS rates of Kes. 3.50 within their network.
Shortly thereafter, Zain Kenya launched its Vuka tariff with a rate of Kes. 8.00 for Zain to Zain calls as well as ALL networks in Kenya. Furthermore, SMS rates within the Zain network and ALL networks in Kenya is Kes. 3.00.
Now, just before the weekend, Orange Kenya launched a tariff of only Kes. 1.00 per minute for Orange to Orange calls (for atleast the next two months), as well as SMS rates of Kes. 1.00 within their network. Orange Kenya also offers its subscribers a rate of only Kes. 7.00 per minute for Telkom Kenya fixed calls.
All of these very low tariffs are coming out even before Econet Kenya has launched their network, which is expected to happen in the next month or so. In a nutshell, at the end of the day, the Kenyan consumer is winning as the mobile networks fight to win marketshare and customer lock-in. My only concern is that consumers now have to consider the very real prospect of having multiple handsets and sim cards for each network! At the end of the day, however this pans out, I am sure everyone is going to LOVE talking and texting on their mobile phones in Kenya for really affordable rates!
According to a report by Leo Cendrowicz on THR.com, online advertising is expected to grow by 23% this year to $43.3 billion. This is in direct contradiction to the slowing glocal economy as a result of the current financial crisis in the US, Europe and parts of Asia. Ultimately, this forecast is a good omen since companies are taking a long hard look at all their costs and finding, once again, that the best bang for marketing buck is the Internet. On the other hand, it’s expected that spending on traditional marketing channels such as television, radio and print is expected to drop significantly. Although Kenya and other emerging markets are only starting to take advantage of online advertising, these trends clearly indicate where the future lies – I am waiting with bated breath for the phone lines to start ringing, and the emails to start pouring in!
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