KDN dials up rates slash as Internet pricing wars intensify

However, since the arrival of international fibre optic links last month, many operators have back-tracked on earlier claims that they would reduce prices by such a large margin, citing the need to recoup investment before they passed on benefits to consumers.

KDN has activated its link on Seacom, a $650 million privately-funded fibre optic project that promises increased access to communication services for Kenyan companies as well as providing a new gateway for international firms who are keen to tap into the under served African markets.

Seacom launched commercial services last month and follows the landing of TEAMS, a similar initiative that is still undergoing testing.

While other companies such as Safaricom have started to unofficially pass on the enhanced connectivity benefits to their customers, KDN became the first to formally announce it was dropping rates to the levels expected by consumers.

“Video streaming is now much faster and efficient you can actually see a video in real time as opposed to previously waiting for it to buffer for a while before one could view it,” said Bhavesh Mistry, KDN’s chief technical officer.

“Downloading movies and watching live web TV is now much easier and convenient,” said Mr Mistry.

KDN’s move renews the focus on the Internet industry as it makes the landmark move from the limited capacity of satellite connectivity to fibre, which has seen debate centre around pricing.

“Not one shareholder will want to price themselves out of the market. The first to market with competitive prices will gain the most,” said Michael Joseph, Safaricom CEO on Kicatanet, an online discussion group.