By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Newsunplug KenyaNewsunplug KenyaNewsunplug Kenya
  • News
    • Metro
    • Politics
    • Business
  • Entertainment
  • Lifestyle
  • Sports
  • Tech
  • Spotify
Reading: The internet market is about to be disrupted by new players.
Share
Notification Show More
Font ResizerAa
Newsunplug KenyaNewsunplug Kenya
Font ResizerAa
  • News
  • Entertainment
  • Lifestyle
  • Sports
  • Tech
  • Spotify
  • News
    • Metro
    • Politics
    • Business
  • Entertainment
  • Lifestyle
  • Sports
  • Tech
  • Spotify
Have an existing account? Sign In
Follow US
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Newsunplug Kenya > Blog > Business > The internet market is about to be disrupted by new players.
Business

The internet market is about to be disrupted by new players.

Ivy Irungu
Last updated: September 12, 2024 5:51 am
Ivy Irungu 9 months ago
Share
SHARE

Kenya Pipeline Company’s (KPC) new high-capacity fibre link between Mombasa and Nairobi is set to transform the local internet market with its innovative pricing model, pushing major players in the sector to either adapt or withdraw.

This fibre optic cable represents a significant leap forward in Kenya’s digital infrastructure and connectivity ambitions. It aims to deliver high-speed gigabit internet and exceptional reliability to homes, businesses, and community networks, greatly enhancing service quality in Kenya’s two largest cities.

Tier 3 Internet Service Providers (ISPs), such as Syokinet Solutions, will benefit from this development by gaining direct access to bandwidth at lower costs. Geoffrey Shimanyula, the Business Acceleration Specialist at EKEKO EA Ltd, explained that smaller providers will be able to bypass the third-party costs that typically drive up consumer prices.

“In the future, many smaller providers will buy bandwidth from Kenya Pipeline Company’s high-capacity fibre for as little as Sh200 per megabyte. They will repackage it, add a small margin, and offer it to their end-users,” Shimanyula said.

Shimanyula noted that lower-tier ISPs usually purchase bandwidth from Tier 2 or Tier 1 providers due to their limited infrastructure. “Their reliance on higher-tier providers for transit increases their operational costs, which are then passed on to customers,” he said. “These ISPs are crucial for local and remote internet access but often at higher costs compared to Tier 1 and Tier 2 providers.”

READ MORE  After meeting with Ruto, American TV star Steve Harvey will travel to Kenya in September.

At the launch event at KPC’s Nairobi headquarters, Managing Director Joe Sang, who was mistakenly identified as the Kenya Ports Authority (KPA) Managing Director on Monday, assured users of the fibre optic service that they would receive a 99.99% service level agreement.

He described the launch as a significant milestone for KPC, aligning with its long-term business diversification strategy. “Our partnership with Syokinet will enhance connectivity and provide high-speed internet services between Nairobi and Mombasa. This is a major advancement in Kenya’s digital infrastructure and supports the government’s Digital Superhighway agenda, driving the country’s transformation, job creation, and economic growth,” Sang remarked.

He expressed confidence in the security and resilience of the fibre optic cable infrastructure, noting that KPC anticipates further expansion and plans to onboard more local ISPs to enhance connectivity. “Our cables run securely alongside the pipeline right-of-way, providing inherent protection and minimal downtime.

This strategic asset enables us to offer carriers highly reliable and low-latency connectivity, and we expect this new service to generate additional revenue for KPC,” Sang stated. “We are actively engaging with more partners to maximize the utilization of our infrastructure for the benefit of all Kenyans,” he added.

READ MORE  Man Charged With Illegally Obtaining Sh4.9m Credit

Fiona Asonga, CEO of Technology Service Providers of Kenya, highlighted that the introduction of the KPC fibre optic network, combined with the arrival of Elon Musk’s Starlink, offers ISPs more opportunities to reinvent their business models. She noted that the lower rates provided by KPC’s fibre optic infrastructure would enable ISPs to build and lease their own infrastructure, rather than relying on the high rates charged by others.

Syokinet CEO Ian Kasyoki praised KPC for deploying “the most robust, scalable, and reliable fibre optic cable in the region,” emphasizing that the collaboration marks significant progress in expanding access to world-class digital services.

Elon Musk’s satellite internet firm, Starlink, has disrupted the network market with competitive pricing and improved speeds, causing concerns among local players. Safaricom, the country’s leading telco, has lobbied the Communication Authority of Kenya (CA) to restrict foreign satellite internet providers, requesting that they operate in Kenya only through local licensees. However, the public has largely supported market liberalization, with many using social media to criticize Safaricom for opposing competition.

READ MORE  Kenya and Uganda Resolve Stalemate, Permits Oil Shipment via Mombasa Port

You Might Also Like

Kenya backs the UN tourist growth plan.

Workers in the hospitality sector will pay for their practicing licenses under the proposed bill.

StanChart profit rallies to Sh6.9 billion

Female staff at BAT Kenya paid more in most job groups

EABL half-year profit drops to Sh8.7b as Kenyans drink less

Share This Article
Facebook Twitter Email Print
Previous Article Over 100,000 will gain from the new AGRA farming agreement.
Next Article Mombasa Showgrounds are given fresh life by ornamental birds.
about us

We influence 20 million users and is the number one business and technology news network on the planet.

Recent Posts

  • Paris Saint-Germain beats Real Madrid in the race to sign the precious gem!
  • Sakaja defends clampdown on property owners over unpaid land rates
  • Man Utd captain Fernandes rejects Al-Hilal move
  • GG Kariuki’s widow Gladys Wairimu dies at 80
  • Rose Njeri released on Ksh.100,000 bond

Recent Comments

No comments to show.
Newsunplug KenyaNewsunplug Kenya
© Newsunplug Kenya. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?