Internet firm to swap monthly billing with pay-per-use

IT services provider Internet Solutions will launch a new billing system that will only charge consumers for data used. The move is likely to shake up the country’s telecoms market.

The service, currently on a pilot phase, will see consumers pay for Internet bandwidth based on the amount of data they consume in a similar billing format used by electricity and water companies.

“Bandwidth is widely considered a utility like power and water, and users want it where and when they need it,” explained Richard Henchle, the Managing Director for Internet Solutions. “Enterprises are demanding convenience and flexible consumption models that respond to their needs,” he explained.

Mr Henchle said the service would be made available to the company’s corporate customers, giving them a chance to save on idle bandwidth that is normally charged to their bills.

The firm is looking to disrupt the market in a similar fashion that Safaricom's per second billing did to the pricing of voice calls more than 20 years ago.

“Our clients are corporate entities whose levels of bandwidth consumption is often fluctuating with peak demand during the day and low use at night,” he explained. “Billing them on a consumption basis allows them to better utilize their resources and only pay for what they use, translating to more value.”

The unique offer comes at a time when broadband demand for businesses and homes is steadily climbing as more Kenyans move personal and business transactions online.

Currently, Kenyan companies are turning to solutions like video-conferencing, cloud computing and data analytics that require large volumes of bandwidth.

At the same time, demand for broadband among SMEs is witnessing steady growth, as more service providers unveil innovative and flexible data packages.