Nairobi April 25 2006…  In another first for this market, Africa Online today launched a new high technology mobile high speed Internet service. At the same time, the company announced that the launch was in line with its strategy to be an integrated communications solutions provider.
The new service known as infiNet Broadband is an affordable mobile high speed Internet service that is up to 20 times the speed of access via a regular telephone connection.

Africa Online recently signed a Memorandum of Understanding with Kyocera of Japan to deploy iBurst technology in its broadband infrastructure in Kenya.
Speaking during the launch in Nairobi, Africa Online Ltd Managing Director Frederick Murunga explained that the company was investing over Kshs 300 million in Phase One of its infrastructure plan to roll out broadband access in the country.

“I see our role at Africa Online as listening to our customers and responding by delivering innovative communications solutions to benefit not just our customers, but the country as a whole. This is what we have done with infiNet Broadband.” He said. Murunga noted that while broadband expansion in the developed economies has been based on wired infrastructure, Africa's broadband future lay with the emerging wireless technologies such as iBurst, a novel Japanese technology that drives Africa Online’s infiNet broadband.

Fixed line penetration for Kenya as is for most of Africa is below 1%. Said Murunga, “Wireless broadband can be deployed to compensate for the appallingly low fixed line penetration by leapfrogging the traditional wired-line infrastructure, which is far more costly.”

“The new service is simple to set up and shall ensure that our customers are connected in the shortest time possible. Furthermore the user equipment is affordable, even for the small and medium sized businesses that were hitherto locked out by prohibitive enterprise connectivity rates”, he pointed out.
The advent of mobile broadband wireless access, said Murunga, would provide freedom and convenience to how people send and receive information. “We've gone from having this boundary between work when you are at your desk or at your desktop at home to now where wherever you are, whether you're taking a portable computer or other hand held device you can get the information that you care about,” he said.

He pointed out that the number of Internet users in Kenya has increased from 500,000 a year ago to 1.5 million today. “This makes Kenya one of the fastest growing markets in Internet penetration in Africa. For example Tanzania with a larger population has just over 330, 000 users compared to Kenya’s one and a half million,” said Murunga.

He attributed the high growth rate to a more enabling regulatory environment and the increased collaboration between government and the private sector.
Murunga called on the Kenya government to provide incentives to investors in high technology such as broadband as this could positively impact on the country’s economic growth. “Investing in broadband has many multiplier effects as it opens doors to a knowledge-based economy which shall in turn stimulate the country’s economic development,” he said.

He added that as a country Kenya needed to deliberately invest in broadband technologies today or face the danger of missing out on the opportunity to participate and benefit from the information economy of the 21st Century. He cited tele-medicine, distant learning and security as some of the areas that could benefit from broadband connectivity.

Noting that investing in ICT has unique risks because of the high degree of obsolescence Murunga said; “The government should consider more bold tax incentives for the private sector such as granting at least a three-year tax holiday for investments in broadband infrastructure.”