Market share measurement for universal mobile telecommunication system operators in Kenya
Date
2014
Authors
Ominde, Diana Kageha
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
The purpose of this study was determine the market share of key mobile operators of Universal
Mobile Telecommunication Systems. Data was collected on identified factors under the voice
segment by reviewing documents of the CCK quarterly report published by the CCK. This data
was a representation of all the operators present from the year 2009 to 2013. The descriptive
statistic ofthe data was carried out by analysis ofstandard deviations, percentages and means. The
output of this descriptive statistic showed that the factors indeed have impact on the market share.
The data was then fitted in the model and output generated on quarterly basis clearly outlining the
percentage effect ofeach factor on individual's operators' market share.
This thesis assesses the usefulness of the identified factors for UMTS market share measurement.
the inclusive of the factors is defined as a discrete event using logit model. The results obtained
from logit model confirm the ability ofTLMT (especially the Minutes ofUse indicator) to estimate
the current market share per operator and to anticipate change in one quarter ahead. Results from
the out-of-sample GDP growth value are ambiguous. Nevertheless the Call Termination Rates
significantly improved original measure based on a model with standard macroeconomic variables
and therefore we conclude in favour of its measurement power.
The key findings of this study outline the rate at which the market is dynamic using logit model.
This model incorporates all factors in the dynamic market and analyzes their effect on the UMTS
operators. The result shows the dynamism which is consistent with logit model. Effective factors
in this market share dynamism are: Number of subscription, Minutes of Use, Total Local Mobile
Traffic, Call Termination Rate and GDP. The result also shows that the logistic model has a better
explanatory and predictable power.
Therefore, implication of this research is that the quarterly report produced by CCK with regards
to the market share controlled by each operator can be revised and factors mentioned in this study
can as well be considered during the percentage estimations. The conclusion is, for effective policy
making and fair competition amongst the operators in this market, the regulatory board can
consider the call termination charges across the networks within the market as a factor influencing
and affecting the operators' market share.
Description
Submitted in partial fulfillment of the requirements for the Degree of Master of Commerce
Keywords
Mobile telecommunication, Market share, Competition, Business, Universal Mobile Telecommunication System Operators, Kenya