Safaricom has conceded its market share is likely to start declining due to the intensifying competition. Tougher competition in the mobile phone industry could chop the company’s market share to between 60 and 65 per cent from 80 in the next three to four years. Despite the expected decline in market share, the firm promises to ensure that it keeps profits rising. Safaricom, the region’s most profitable mobile phone company, would fight to keep its top-paying corporate customers by offering a range of services, including newly-launched third generation technology. Safaricom will still be increasing pre-tax profits for the foreseeable future because it already has cost controls in place as assured by its management. Since Vodafone took control of 40 per cent of the company in 2000, it has had a blistering run of success, securing more than 10 million subscribers and a market share of more than 80 per cent. However the firm is entering a tougher phase in its operations as two new competitors, in addition to the renamed Celtel now Zain, engage in cutthroat competition for existing and new markets. Safaricom’s after tax profit for the financial year ending March 31, 2008 was an impressive Sh13.9 billion. | 