- Equity Group’s financial technology subsidiary has upgraded to a high-speed internet network in the battle for a larger share of the burgeoning mobile data business.
- Finserve Ltd, which offers mobile telephony and internet banking on the Equitel platform, has rolled out broadband over the 4G network.
Equity Group’s #ticker:EQTY financial technology subsidiary has upgraded to a high-speed internet connectivity network in the battle for a larger share of the burgeoning mobile data business dominated by Safaricom #ticker#SCOM.
Finserve Ltd, which offers mobile telephony and internet banking on the Equitel platform, has rolled out 4G network broadband in a Covid economy that has fueled demand for faster internet connectivity to enable remote working and learning.
Mobile data has become a major revenue driver in the telecom sector.
Finserve says Equitel’s shift to a 4G high-speed broadband network will provide its more than 1.5 million subscribers with faster speeds to browse, stream, download and upload videos, as well as files at a time when workplaces are rapidly transitioning to a hybrid work model.
“The new Equitel 4G SIM card will address the issues of slow internet connection and limited data coverage,” Finserve Africa director Lanre Bamisebi said in a statement yesterday.
“We expect this to significantly accelerate our revenue growth and grow our active customer base.”
Equitel had a meager 0.4 percent share [172,118 subscribers] of the mobile data market whose subscriptions reached 43,029,579 customers in March 2021, the latest statistics from the Communications Authority of Kenya show.
Safaricom controlled 68.2 percent of mobile data, followed by Airtel at 25.9 percent, Telkom 5.1 percent, while Jamii Telcoms had the same share as Equitel at 0.4 percent.
Finserve has supported the rollout of a 4G network to eat up the market share of rivals (Safaricom and Airtel) that have been running on the high-speed spectrum for years, and the industry leader is now starting to upgrade its site to a 5G network.
The company says that the 4G network-enabled SIM cards are already on sale and that it is doubling the data bundles purchased by customers.
Equitel charges Sh999 for a monthly data bundle of 2,048 MB, which is slightly more expensive than its main rivals.
While Equity’s telco platform struggled to increase its market share for browsing, calling and texting, its mobile banking offering has seen significant growth, with transaction value for the year ending December 2020 growing 50 percent year-on-year. rose to Sh934.2 billion.
Equity said Sh421.8 billion was traded on Equitel in the first quarter of the year, up 163 percent from Sh160.5 billion a year earlier.