Corporate News
Firm targets SMEs with cheaper Internet service
Marine divers fit the fibre optic cable in Mombasa. Majority of the Internet providers are yet to reduce charges for consumers long after the arrival of the high speed Internet link. Photo/LABAN WALLOGA
Posted Tuesday, February 9 2010 at 00:00
Internet users are set to experience high speed connections at lower prices following Kenya Data Network’s (KDN) launch of a service, which is eight times cheaper compared to what other providers offer.
The move comes barely a week after Information Permanent Secretary, Dr Bitange Ndemo, said the government was investigating whether internet providers were colluding to keep prices high despite being connected to the undersea optical fibre cables which were supposed to make the service affordable to end users.
Internet services providers have only increased their bandwidth capacities to their clients but are still charging the exorbitantly.
Last Friday, KDN unveiled a high speed Internet product dubbed Butterfly Optic Xpress (Box) targeting small and medium enterprises which it says are still underserved due to high prices, a step experts say may herald a new dawn which will see end users experiencing high speed internet at lower prices and also push the competition to the next level.
In the deal, KDN is offering an internet bandwidth capacity of 256 kilobytes per second for Sh999 and five megabytes per second for Sh7,999 One megabyte will cost Sh3,999 per month.
AccessKenya, which currently controls more than 42 per cent of corporate Internet customers, charges Sh8,500 for one megabyte per month and Sh4,000 for a 64/128 megabytes per month.
Wananchi Online through Zuku charges Sh1,499 for a 256 Kbps, Sh2, 999 for a 512 Kbps and Sh4,999 for a 1 Megabyte per second per month.
Mr Kai Wulff, the chief executive officer of KDN, says SMEs consider the cost and quality of the of services as key when selecting a broadband solution.
“The only way to pay for fibre is not by putting high prices but targeting a mass market” said Mr Wulff.
“SMEs will now be able to save on their communication costs and still maintain high standards by the use of integrated communication such as VoIP, email and data storage capacity to increase their business reach and grow their market share.”
Other than high speed internet capacity, the clients will be guaranteed connectivity with refunds on downtime.
KDN, does not charge installation or equipment fee.
However there is a catch, as one has to pay a refundable deposit of Sh15,000.
The fee is refundable after two years upon request but is forfeited to the company if one chooses to cancel the contract before the two-year period elapses.
RSS