Safaricom

Infobox_Company
company_name = Safaricom
company_
company_type = Public. Owned by Vodafone & Telkom Kenya
foundation = 1997
location = flagicon|KEN Nairobi, Kenya
key_people = Michael Joseph, CEO.
products = G.S.M.-related products
homepage = [http://www.safaricom.co.ke/ www.safaricom.co.ke]
industry = Telecommunications
num_employees = 1000+
revenue = £349 million (2007)
operating_income= £131 million (2007)
net_income = £88 million (2007)

Safaricom, Ltd is a leading mobile network operator in Kenya. It was formed in 1997 as a fully owned subsidiary of Telkom Kenya. In May 2000, Vodafone group Plc of the United Kingdom, the world's largest telecommunication company, acquired a 40% stake and management responsibility for the company. Telkom Kenya as a result owns a 60% stake in the company. As of May 17, 2006, Mr Michael Joseph is the CEO. Recent reports appearing in the cross section of the press indicate that Vodafone Plc of UK only owns 35% and the remaining 5% is owned by a little known company, Mobitelea Ventures Limited. The reports have caused a stir which led to the summoning of its CEO Michael Joseph to appear before the PIC "Public Investment Committee", during which he denied knowing who the other shareholder is. It is widely believed that the former regime arm twisted Vodafone to shed off the 5% as a kickback to high ranking officials in the regime. Safaricom's initial public offering of stock, on the Nairobi Stock Exchange, closed in mid April 2008.

Safaricom employs over 1500 people mainly stationed in Nairobi and other big cities like Mombasa, Kisumu, Nakuru and Eldoret in which it manages retail outlets. Currently, it has nationwide dealerships to ensure customers across the country have access to its products and services.

As of October 2007, Safaricom boasts a subscriber base of approximately 8 million, most of whom are in the major cities - Nairobi, Mombasa, Kisumu and Nakuru.

Its headquarters is located in Safaricom House, Waiyaki Way in Westlands, Nairobi. It has other offices in the city center in I&M building, Kenyatta Avenue ,on Kimathi Street and at Shankardass House - next to Kenya Cinema Moi Avenue.

Its main rival is Zain Kenya.

Safaricom has charitable functions where it helps the less fortunate in the society mostly through the Safaricom Foundation.

Flashback service

As a result of the limited income of most of Safaricom's customers, network congestion emerges from a practice called 'flashing'. Flashing is the practice of calling another mobile user, but disconnecting before the connected call is answered. It provides a method for mobile users to alert someone that they wish to be called, but either can't, or won't, pay for the call. The method is cost-free for the users; but costly in network bandwidth.

That is why Safaricom sometime ago introduced a flashback service that gave every subscriber 5 free SMS messages with a single pre-defined message stating "Please call me. Thank you". Although the messages can be annoying when sent just for fun they are very useful when one is in trouble and has no airtime. It also gives parents more of a reason to get mobile phone for their children without the real need for getting them airtime.Unfortanately, at this time, the flashbacks can only be sent to Safaricom subscribers due to some feuds with Zain, Safaricom's main competitor.

Electronic cash service

Safaricom has developed and launched nationwide an mobile banking service called M-PESA, that allows Kenyans to transfer money via SMS. [http://news.bbc.co.uk/1/hi/technology/6241603.stm
http://www.safaricom.co.ke/m-pesa/
http://www.economist.com/printedition/displayStory.cfm?story_id=9414419] The service does not require users to have bank accounts, an important aspect in a country like Kenya, where many people do not have bank accounts. With M-PESA, the user can buy digital funds at any M-PESA agent and send that electric cash to any other mobile phone user in Kenya, who can then redeem it for conventional cash at any agent. This system is remotely comparable to hawala banking or services like Western Union. An M-PESA enabled mobile phone can also function as an electronic wallet and can hold up to 50,000 Kenyan shilling. [ [http://www.safaricom.co.ke/m-pesa/default2.asp?active_page_id=810 Safaricom m-pesa - FAQs ] ] Safaricom stakeholder Vodafone, which partnered in the development of M-PESA, has announced that it intends to roll out M-PESA internationally as well.

Other services

Safaricom together with many other companies have come up with different services for use by the public ranging from weather updates to market prices and even entertainment updates.

ee also

Mobitelea Ventures Limited

Notes and references

External links

*http://www.safaricom.co.ke
*http://www.safaricomfoundation.org
*http://www.energyfields.org/science/becker.html