Orange Kenya unveils 3G network as competition shifts to data

Business

BY JEVANS NYABIAGE

Orange Kenya has launched its third generation (3G) network, a move that will enable it offer faster mobile Internet access.

The firm’s chief executive officer Mickael Ghossein while unveiling the new technology said the operator is now positioned to offer superior mobile Internet services with speeds of up to 21Mbps.

This, Ghossein said will make it possible for mobile and computer-based users to derive maximum data value.  “A new internet era begins today,” he said.

This comes at a time when mobile phone service operators are turning to data as voice thins out.

Local tariffs have halved as players race to grow and defend their market shares, with the price war shaping up as the biggest threat to the industry’s earnings.

Stiff competition in the voice market has led to tariff reduction by more than 50 per cent since last August, eroding profitability.

Ghossein announced the introduction of a range of high definition (HD) voice devices to enable customers to experience high quality voice calls on the Orange network.

The firm also launched a range of high-speed Internet devices and a new data tariff structure that will see customers browse the net for as low as Sh0.40 per megabyte.

Customers will also have the ability to manage and control Internet abuse through the new parental control software that can be downloaded from the Orange portal.

The 21Mbps network service will initially be offered in Nairobi, Mombasa and Kisumu, with plans to open up services in other regions in the coming months.

Ghossein challenged software developers to come up with applications to take advantage of the increased data capacity offered through the new 3G services.

Orange is the second operator to launch 3G in Kenya, after market leader Safaricom. Airtel Kenya is expected to launch the service in the coming weeks.

Market leader, Safaricom has been the only firm providing commercial third generation network services and is trying out a more superior version known as LTE or 4G. This has given the operator a head start over its rivals.

Analysts see data and value added services, such as money transfer, as the next revenue growth for mobile firms.

Industry regulators’ latest statistics indicate that more people can now access the Internet via mobile phones with Safaricom, which offers 3G services, controlling the market.

The firm controls 92 per cent of market share, with 3.7 million subscribers, followed by Airtel with 4.6 per cent amounting to 680,494 subscribers, while Orange has 2.4 per cent share equivalent to 82,697 clients.

In 2009, the Communication Commission of Kenya lowered 3G frequency fees to $10 million, from the previous $25 million that Safaricom paid in 2007 after stiff campaign from Telkom Kenya and Airtel.

Safaricom has insisted that CCK should refund them the difference.

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