Amid the increased competition in the local Internet market following entry of new players, analysts see small-scale enterprises emerging as some of the biggest beneficiaries.
The improved efficiency and enhanced customer service as Internet service providers try to outdo each other is poised to usher an era that will redefine operational models and possibly accelerate the take-off of micro-ventures, the observers note.
“In today’s digital age, technology plays a pivotal role in shaping the landscape of small businesses. From streamlining operations to expanding market reach, intensifying technological advancements now coupled with increasingly affordable Internet is set to revolutionise the way small businesses operate and compete in the global marketplace,” remarks Kiambu-based software developer Sammy Gathirwa.
According to social media analyst Bravin Yuri, Internet affordability is relative in that it varies depending on a range of parameters including the user location and the service provider, among other factors.
He notes, for instance, that connectivity for personal use is affordable because providers allow subscribers to customise their packages to the cost that’s most suitable for their needs, a concept he says will be a magic button if extended to business use-cases as new offerings emerge.
“The emerging technologies which include fibre, the fifth-generation (5G) network and satellite connectivities are going to greatly enhance connectivity speeds and reliability, moreso satellite Internet which comes to spur penetration into traditionally underserved areas that are predominantly the rural settings,” observes Mr Yuri.
“The moment these micro-enterprises are able to access Internet in an affordable and reliable manner, they will be better equipped to establish their digital presence in ways they previously couldn’t. They will also be in a position to gain access to more information that will greatly aid their research efforts.”
Digital marketing strategist Nyandia Gachago says niche businesses’ growth is oftentimes stifled by lack of access to affordable connectivity which inhibits quality research as well as meaningful interactions with mentors and peers.
“Affordable Internet will accord small businesses a chance to explore a global reach for those that are trying to innovate and get to customers beyond the local borders. It will also be easier for them to collaborate with other entrepreneurs, especially those in the services sector,” notes Ms Gachago.
“Cheap Internet will also empower small enterprises to reconfigure their models to remote work which will in turn lower their operational costs and eliminate the inhibitive entry barriers,” she adds.
The Kenya Internet market disruption is driven partly by the entry of aggressive commercial satellite internet providers, among them Elon Musk’s Starlink which has turned the heat on traditional providers including leading telcos. The increasing competition has forced the old guards to rethink their data pricing models and service offerings.
Data published last August by British technology research firm Cable indicates that Kenya ranks 125th globally and 20th in sub-Saharan Africa in the cheapest pricing offers for broadband Internet.
According to the report, Kenyans pay a monthly average of $47.73 (Sh6,160 in current conversion rates) for fixed broadband connection which is a marginal drop from the monthly average of $49.13 (Sh6,341) charged last year.
The Kenyan Internet market has remained under the tight grip of Safaricom which enjoys a 37.4 percent market share as per the latest statistics published by the Communications Authority of Kenya (CA).
The giant telco is trailed by Jamii Telecommunications Limited, Wananchi Group-owned Zuku, and Poa Internet Kenya Limited at 22.6 percent, 18.8 percent, and 13 percent share respectively.
During the first three months of this year, total fixed Internet subscriptions grew 4.9 percent to 1.4 million, up from 1.3 million as of December last year, with CA figures indicating that the international Internet bandwidth in the country increased 20 percent to 20,744.34 gigabytes per second (Gbps) during the period is attributed to the upgrade of the capacity during the reference period.
The total utilised undersea bandwidth capacity grew by q.5 percent to 11,155.154 Gbps, out of which 8,201.334 Gbps were used in the country and 2,953.820 Gbps were sold outside the country,” wrote CA in its latest sector statistics report.
