Internet niche sees major shifts as telcos take over

In 2008, Safaricom paid Sh185 million to acquire a 51 per cent stake in Wi-Max provider One Communications.

Data from CCK shows a surge in uptake of wireless and mobile as opposed to fixed internet services, an indicator that the mass market is warming up to data services from mobile firms.

Fixed internet subscribers dropped to 8,349 in last year’s quarter compared to 8,434 in a similar period in 2008.

Wireless internet subscribers grew to 8,435 from 6,751 while mobile internet users grew by nearly 400 per cent to stand at 1.9 million.

Analysts say the huge uptake of mobile internet is partly as a result of the dispersion in the home market, a move that has slowed down infrastructure investment.

“Homes are dispersed and ISPs have to identify concentrated zones where uptake can justify the capital investments,” Mr Waweru said.

The entry of mobile firms into the lucrative Internet market comes after they were granted the unified licence last year by CCK.