Bharti Kenya adds 2 mn users after price cuts

Bharti Airtel's Kenyan unit has added 2 mn users to its network since slashing tariffs in August last year, doubling its active customer base to 4 mn, its managing director said on Thursday.

The firm sparked a price war in the sector when it reduced calling rates by more than half to 3.00 shillings per minute across all networks, in a bid to lure users from market leader Safaricom.

Bharti, which began as Kencell, is ranked second in the east African nation by users after it was hobbled by a focus on the top end of the market, locking out the majority of Kenyans who are on low incomes.

"With the drop in tariffs, we have seen an increase in volumes, both in users and in minutes," Rene Meza told a news conference.

He said the average number of minutes customers spent on the phone had tripled since August, without saying how many minutes consumers spent talking on their mobile phones daily.

Bharti is investing 25 bn shillings (USD 309.2 mn) in its network, mainly in data capabilities such as third generation (3G) services where it lags. It plans to launch a 3G service at the end of this quarter.

"The beginning of our data journey will start towards the end of this quarter," Meza said, adding the company will also double its 2G sites around the country.