| dc.description.abstract | The telecommunications industry in Kenya has in the recent past experienced intense turbulence; Technological advancement and regulatory restructuring have transformed the industry. Markets that were formerly distinct, discrete and vertical have coalesced across their old boundaries with a massive investment of capital much of it originating from private sector participants. The result is new markets, new players, new challenges and critical need for strategies that are effective and efficient. Strategic decisions are about the scope of an organization's activities put in perspective to enable achieve an advantage over the competitors. Strategy can also be seen as the search for a strategic fit with the business environment. This could involve major resource changes and correct positioning in terms of the extent to which products or services meet clearly identified market needs at acceptable prices. Pricing within the -telecommunication industry has been an integral element of competitive strategies among mobile operators and now fiber operators in relation to internet and other data services. The landing of the undersea fiber optic cables in Mombasa in mid 2009 signaled a new pricing regime for internet bandwidth and other data services.
This study aimed at identifying the ,determinants of pricing, strategy among fiber operators in Kenya. A fiber operator is a company which not only carries and delivers data (internet and clear channels) over fiber optic networks, but which has also built and owns Fiber optic cabling infrastructure that it can lease to other Internet Service Providers. The study also sought to identify the strategies that the fiber operators were using to compete as they deliver the new services in Kenya. The study was a descriptive survey where data was collected using a questionnaire with both closed and open ended questions. A total of 20 respondents from the four fiber operators in Kenya were
interviewed and the response rate was 100 percent. Findings of the research indicated that fiber operators considered the following determinants while formulating pricing strategy: cost, value, competition, the consumer and the level of demand. Cost was at the top of the list because the fiber operators had invested a lot in building fiber infrastructure and needed to at least recoup their investments and break even in order to remain competitive and sustainable. The rest of the determinants were important in helping the operators achieve their strategic goals, which included overall growth, increased market share, quality leadership, customer satisfaction and product innovation. The study also found that fiber operators in Kenya were generally using a price .skimming strategy to launch the new mode of delivery of internet in Kenya. This is because majority indicated that they were ideally charging higher prices currently with the aim of reducing them later, that they had infrastructure - costs to recover and that their services were highly differentiated | en_US |
