Telco in deal with property owners to link fibre

Safaricom is moving to strengthen its broadband offering in a move set to stoke competition in the fixed Internet market.

This follows a partnership between the service provider and real estate property developers to provide Internet-ready premisses for businesses.

Dubbed Jiji Smart, the new service will see Safaricom provide broadband infrastructure like fibre connectivity to buildings while under construction to ensure premises are internet-ready.

“Jiji Smart is a proposition informed by the fact that the internet has revolutionised how we communicate, both in business and in social circles,” said Safaricom Business General Manager, Ms Rita Okuthe.

“We are leveraging on our capabilities in fibre and 4G to offer high speed Internet for those living in specific addresses.”

The new partnership is a bold step by Safaricom to command a larger share of the country’s growing broadband market where companies like Jamii Telecom, Wananchi Group and Access Kenya command a strong presence.

Early this year, Access Kenya revealed that it will be laying more than half a billion shillings worth of fibre as part of regional expansion strategy to grow its broadband business into the East African region.

The money will be used in laying 300 kilometres of fibre and wiring between 150-200 buildings across the country’s towns and cities.

Mauritius-based internet service provider Liquid Telecom says that it has since laid 4,200 kilometres of fibre optic network across the country, connecting 39 out of the 47 counties, at a cost of $200 million (Sh20 billion).

Data from the Communications Authority of Kenya (CA) indicates that the while internet connectivity in the country continues to rise, there still remains a lot of opportunity in the provision of fixed broadband services.

Mobile broadband subscriptions recorded a significant growth of 37.9 per cent to stand at 4.07 million in the second quarter of 2014 up from 2.95 million subscriptions reported in a similar period in 2013. Fixed/wireless broadband subscriptions on the other hand have remained stagnant at 90,000 subscribers over the last two years.

Universal Service Fund

The Government has also weighed in on the matter stating that property developers should be compelled, either through legislation or incentives, to make provisions for broadband connectivity when putting up commercial and residential structures.

“We want governors to compel people putting up houses in their counties to put in provisions for critical infrastructure when putting in new buildings,” said Information and Communication Cabinet Secretary Fred Matiang’i at the connected East Africa summit in April this year.

Matiang’i further said the government is planning to execute a pilot project in informal settlements of Mukuru kwa Njenga and Kibera using proceeds from the Universal Service Fund where residents will be provided with free Wi-Fi connectivity.