Technological news by Leo Odera Omolo

EARNINGS in the ICT sector in East Africa will rise from USD 164 million in 2007 to USD 788 million by the year 2014 due to a favorable business environment for internet service provider and growth in broadband connections, according to a projection report by market analyst experts.

According to the form of experts Frost and Sullivan, the region lack of an undersea cable connection has meant that internet services have been prohibitively expensive counting the number of people who could get booked up to the net, since countries have had to rely on expensive counting the number of people who could get booked up to the net, since countries have had to rely on expensive satellite technology for international connectivity.

This trend has had a negative effect on the earnings of players in the sector.

“Currently deployment of undersea cable systems will provide much needed broadband connectivity in the region, positively impacting on the cost of internet services ,”noted a statement from Frost and Sullivan research analyst Letticia Mulenya Nkumbula in recruit briefing statement.

Both Kenyan and Tanzania are going to have a landing point of their own, thus putting the region at an advantage she added.

Together with private sector, the Kenya government is leading the drive to develop the Teams cable network to exist Mombasa and Land in Fujairah.

To suxxx the project, the Kenya government last year paid KSHS.200 million(USD 2.6 million) to an American Company TYCO Ltd for the marine survey and also deposited Kshs 840 million (USD 11million) with manufacturer of the cable and contractor, Aketel – Lunent, a French Firm.

However, the equity participation try the Private sector in the cable project has drawn controversy with critics saying it was transparent, according to an article in the influential region regional weekly the Eastafrican.

But according Frost and Sullivan government support for the ICT sector in the region has seen the pace of liberalization pick up with the attendant enactment of the requisite lregulatoryegulato and market legislation in the East African community’s five member states of Kenya, Uganda,Rwanda and Burundi and Tanzania.

Rwanda has taken the lead in the lead in this aspect with the regional powerhouse, Kenya enacting the Kenya Communication Act,2008,last December.

Elsewhere, the liberalization in the telecoms sector and the introduction of converged licenses in the region have spurred increased Competition among internet service providers (ISPC)

This has caused a reduction in telecom tariffs, resulting in a positive effect on the subscriber’s base, analysts say

As a result, the firm ads, ISPS are not only feeling the competitive pressure from within their operating environment but mobile operators are now pushing their data services deep into the ISP client as well.

This has introduced a new wave of competition in the industry that compels ISPS to redefine their position in the industry if they are to remain competitive.

In the internet market ,mobility and the ability to provide faster data transfer rates are some of the key competitive factors”, Ms Nkumbula said

“Mobile telecom operators are also offering similar value prepositions, which are becoming attractive originally been serviced by ISPS and fixed line providers.”

Analysts say that the level of aggressiveness demonstrated by mobile telecom operators in the data space means that ISPS across east Africa will need to look their traditional internet services to include net solutions and contents in order to expand their markets

Ends

leooderaomolo@yahoo.com

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Date: Fri, 6 Feb 2009 04:08:24 -0800 [02/06/2009 06:08:24 AM CDT]
From: Leo Odera Omolo
Subject: EAST AFRICA’S ICT SECTOR EARNING MAY INCREASE TO HIT 788 MILLION DOLLARS BY THE YEAR 2014