Kenya - Broadband Market - Insights and Statistics
Kenya's broadband market has been transformed in recent years as the result of the landing of four fibre-optic international submarine cables coupled with increased investments in network upgrades among the key providers. The international cable connectivity ended the country's dependence on limited and expensive satellite services, and with increased bandwidth wholesale prices for broadband have fallen by more than 90%. This has helped make broadband services affordable for the mass market.
Companies that started out as ISPs such as AccessKenya, Kenya Data Networks and Wananchi have transformed themselves into second-tier telcos by rolling out national and metropolitan fibre backbones and wireless broadband access networks. These players offer converged voice, data and video/entertainment services. However, the infrastructure investments have been costly and the market has become more competitive, which has led to takeovers in the sector.
At least six major WiMAX deployments and a number of Fibre-to-the-Premises (FttP) rollouts have pushed fast broadband connectivity to a greater number of subscribers. Most broadband connections are made via third generation (3G) mobile networks, while the number of connections using Long-term Evolution (LTE) technology has grown rapidly since 2014. A range of services including video streaming, e-commerce, e-learning and e-government are evolving rapidly on the back of this improved infrastructure.
AccessKenya completes metropolitan fibre network rollout in Nairobi and Nakuru; rural internet access rollout begins using TV white space spectrum; ASO achieved in late March 2015; Liquid Telecom expands its FttP infrastructure, provides free WiFi service to select cities; Akamai Technologies contracted to supply cloud services for the KIXP; Internet.org launches in Kenya providing limited free internet access; further takeovers in the second-tier telco sector; international internet bandwidth continues to increase; government progresses with national broadband strategy; report update includes regulator s market data to December 2014, operator data to Q4 2014, recent market developments.
Companies mentioned in this report:
Telkom Kenya (Orange, France Telecom); Kenya Data Networks (KDN); Jamii Telecom; SimbaNet; Africa Online (Telkom SA); Access Kenya (Dimension Data); Wananchi Online; MTN Business Kenya (UUNet); Swift Global; Internet Solutions Kenya (InterConnect); Safaricom (IGO Wireless, OneCom); Gilat Satellite Networks; Afsat Communications; Inmarsat; Indigo Telecom (Thuraya); Nation TV (NTV); KenTV; Liquid Telecom.