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DETERMINANTS INFLUENCING GROWTH OF MOBILE TELEPHONY IN KENYA: A CASE OF SAFARICOM LTD


Dr. Karanja Ngugi

Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya

Geoffrey Mutai

Telecommunications Specialist, Kenya


ABSTRACT

Globally the mobile telephony subscription stood at 6.8 billion by the end of 2012 with the Americas, Asia, Europe and Africa having 1.08 billion, 3.5 billion, 790 million and 545 million respectively. Locally, the mobile telephony industry in Kenya has grown rapidly in the past decade from a duopoly in the year 2003 to the current oligopoly with a total of 30.4 million subscribers at the end of first quarter, 2012/2013. The general objective of the study was to investigate the determinants that influence the growth of mobile telephony in Kenya. The study investigated how innovation, franchising, customer loyalty, training development and government policy has contributed to the growth of mobile telephony with a case of Safaricom Ltd. However, this rapid growth is asymmetrical amongst the four cellular operators with Safaricom commanding 63.2% of the total market share. In today’s telecoms environment five factors namely: innovation, customer loyalty, franchising, training development and government policy play crucial roles in order to realise growth. The study adopted a survey research with the target population of 790 respondents. The key findings of the study shall be used to enhance further studies that concern the growth of mobile telephony in Kenya.


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