Voice calls are on the decline as customers opt for other forms of messaging. Recent trends show that customers are shifting to over the top (ott) mobile applications like Whatsapp and Instagram for communication. The shift calls for businesses to rethink their investment in revenue models as instant messaging apps continue to grow.
A survey by Deloitte shows that voice calls are the least growing form of communication in Kenya. Between 2015 and 2018, voice calls grew by only 10% from 51% to 61%. On the other hand, instant messaging increased from 43% to 74%. Emails so the most significant shift, growing by 29% from 28% to 57%.
On instant messaging apps, Whatsapp remains the most dominant app, with 87% using the platform every day. Facebook follows closely with 69% usage amongst people between 25 and 34 years and 80% for those between 35 and 45.
In general, the survey shows an increase in usage in internet-based platforms. For instance, Voice calls via Internet show 17% growth, whereas video calls jumped from 10% to 37%.
The slow shift in usage trends is already changing how Kenyan Telcos make money. Safaricom’s voice revenue reduced from 47.1% of their total service revenue in 2015 to 36.6% in 2018. On the other hand, mobile data revenue rose from 11.9% to 16.1% of their service revenue for the two years.
The rise of internet-dependent forms of communication means two things for Telcos. One, communication companies with the best network penetration and the fastest internet might will attract more customers. Voice and video calls work best with high internet speeds; therefore, companies should invest heavily in 4G penetration.
Lastly, increased internet usages present a chance for Telcos to either provide or promote content sharing. Either way, more content will attract more users. The increased in users and time spent on internet platforms will later help grow ARPU.
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