Safaricon, Airtel and Poratbility.

The new changes on portability are set to be officially effective on April 1. A user will now be able to change the mobile service provider without having to change their mobile phone number. It will initially cost kshs.200 to change from one service provider to another. Previously, users had to maintain several SIM cards out of fear of losing their contacts with friends, families and business associates. Telecom and business analysts have been at it, predicting who will be the winners and losers in the new arrangement. The recent price wars have seen significant drops in call and SMS charges. As a result, the revenue from voice operations; which has been the main cash cow for the mobile operators, is expected to drop significantly.

Safaricom may be the hardest hit, as it relied on the voice operations to generate a huge chunk of its revenues. In the previous financial year, the company realized over ten billion shilling profit, making it the most profitable company in East and central Africa. However, that profit margin will likely not be achieved in this financial year, as the voice revenues begin to drop significantly. Already, the number of daily calls has dropped from an average of 800,000 per day to about 365,000. Airtel, Orange, and Yu have also eaten into its market share although it still remains the dominant player in the market.

Perhaps out of a realization that the company might be entering into a new phase of maturity and limited growth, the company recently introduced sweeping changes to its senior management level. The number of senior management positions were reduced by at least three. The CEO, Bob Collymore, announced that the changes will impact all the staff. However, the company has moved to reassure its staff that there would be no job losses as a result of the changes. The move has also been seen as indicator of Mr.Collymore flexing his muscles, since he inherited the entire management team from his predecessor, Mr. Michael Joseph. Mr. Collymore has indicated that the company will concentrate on increasing the growth in data business, another potentially lucrative sector that has barely been scratched. It also has the revolutionary MPESA to keep the subscribers loyal.