AccessKenya, a leading Internet services provider (ISP) in Kenya, has said it will in 2013 inject KSh120 million ($1.17 million) into fiber-optic infrastructure expansion across the country, as it targets more corporate and high-end customers with fixed Internet connections.
AccessKenya’s managing director Kris Senanu said the new investment is primarily driven by demand even as the market becomes more mature in Internet usage and consumption.
The company said the expansion is part of the ISPs diversification strategy aimed at maintenance of its market share after a terrible fourth quarter that saw the company shed gains in its market control.
The new move is also been seen as a final kick by the ISPs to increase their market share and dominance with mobile phone service providers continuing to control the market with mobile data and Internet subscriptions contributing 98.9 percent of the total internet and data subscriptions.
This statistic points to the increased use of smartphones in Africa with mobile phone network providers extending their access to 75 percent of their entire countries. At the same time, more and more companies have rolled out 3G Internet services.
CCK on its part attributes the increased uptake through the mobile phone platform to competitive offers and promotions offered by the telecoms operators.
Fibre-optic has continued to underperform largely due to the slow completion of the last mile connectivity with a mere 46370 subscriptions as per the fourth quarter, and a 26.7 percent growth.
Earlier this year, AccessKenya sank KSh100 million ($1.17 million) into a similar project saying it hoped to deliver better broadband experience to its customers even as it launches more fibre-optic solutions.
In the project launched in January, AccessKenya said it would target over 100 new buildings on top of the 350 connected in Nairobi and Mombasa. It is estimated that Kenya has just over 14 million Internet users while the penetration is up to 35 percent.
In terms of fixed internet provision, AccessKenya is position 3, having lost 0.7 percent market share since march and thus currently controlling just 13.9 percent behind leaders Kenya Data Networks (KDN) who have 28.9 percent and 0.3 percent since the previous quarter.
Wananchi telecom firm remains at position 2 having gained a massive 2.8 percent to stand at 26.7 percent, thanks to its Zuku product that has revolutionised cable TV viewership in Kenya.