Mobile network operators set for stiff competition
Finserve chairman John Waweru (left) and Equity Bank CEO James Mwangi (right) during a hearing on September 5, 2014 where Safaricom and Equity Bank appeared before a Parliamentary committee over the licensing of mobile virtual network operators (MVNO). PHOTO | DIANA NGILA |
What you need to know:
- Equity’s is not a pure telco play, but Safaricom is working hard to slow down the inevitable having tasted the impact on the bottom line that financial services can bring.
It is always fun to sit and watch industries morph as technology becomes cheaper or regulation changes.
The latest dance to pique my interest has been that of mobile juggernaut Safaricom and Equity bank.
Regulatory changes have not been kind to Safaricom in many respects.
Its first line competition has been busy pushing for the opening up of Safaricom’s agency network, which pundits have often cited as the firm’s biggest strength.
Now new players by way of recently licensed mobile virtual network operators (MVNO) are angling for a piece of the current telecoms pie.
Equity Bank, through the Equitel brand, seems to be the only one with a solid strategy right of the starting blocks, trying to control as many factors of production as possible.
