Mobile phone use in Kenya may be set to rise, with the entry of low-cost “Mi” handsets from China.
The handsets from Hong Kong company Mi-Fone will retail for the equivalent of US$25 to $60, a move expected to be popular with low-income earners. The handsets will be available in shops next month and are expected to compete with brands such as Motorola, Samsung and Nokia.
The growing GSM (Global System for Mobile Communications) market and the need for more affordable phones were the inspirations behind opening of the Nairobi regional office, said Alpesh Patel, Mi-Fone’s global sales director.
To complement the cheap handsets, the Ministry of Information and Communication has proposals to the Treasury seeking to trim the current 26 percent airtime tax to 10 percent in the 2008-2009 budget, said Permanent Secretary Bitange Ndemo. Ndemo spoke during the Mi-Fone launch.
The 26 percent tax on airtime has made mobile phone calls more expensive in Kenya compared to other countries such as Uganda. If the proposal is approved, the cost of calls may fall to two shillings, which will make it more affordable, Ndemo said.
The Communications Commission of Kenya (CCK) is working toward lowering interconnectivity charges, which coupled with reduced airtime costs will stimulate communication and generate more revenue for the government, Ndemo added.
With Telkom Kenya and Econet Wireless expected to roll out GSM services by the end of the year, Ndemo said he hopes that increased competition will lower the cost of calls. The Kenyan mobile market currently has two major telecommunications operators: Safaricom and Celtel.
The Mi100 handset has a black and white screen, the Mi 200 handset has a color screen and a radio. The Mi 220 has radio and camera features.
The company is targeting young consumers who are aware of the benefits of the phones but lack a lot of money to spend.
Mi-Fone will be consolidating its presence in Africa with the office in Nairobi boosting regional sales in Eastern Africa. Mi-Fone has regional offices in Dubai, with distribution points in Dubai, Mauritius and Johannesburg.
