ISP industry in Kenya.
1. Brief History
The Internet first became available in Kenya to a small group of technical enthusiasts in 1993. The only means of accessing the Internet then was through a service known as Gopher which offered access to text based information. The acess then was through either international leased lines or through X.25 connection to ITUs TIES.
The African Regional Centre for Computing (ARCC), an NGO based in Nairobi, Kenya, became the first provider of web-based Internet service. This they did by providing their subscribers with the first-ever web browser software-Mosaic. The connection to the global Internet backbone was via an analogue leased line.
The first commercial ISP, Formnet began operating in 1995. Soon competition increased with the entry of three other ISPs. All the ISPs would lease analogue or digital data lines from Kenya to the US to access the Internet backbone.
2. Internet Access Backbone
As the number of ISPs grew so did the pressure for bandwidth. At this point the Kenya Posts & Telecommunications Corporation (KPTC) realized that there was a need for an Internet access backbone in the country. This would also bring down the cost of access to the Internet for ISPs, since the backbone would be accessed locally. The backbone, EAFIX, was launched in December 1998, and together with it Jambonet, an access service for ISPs.
2.1 Jambonet
The cost of Jambonet was about one quarter of the cost of leasing an international digital data line. The result was the entry of more ISPs in the market, which led to even more competition for customers.
2.2 Bandwidth
The international bandwidth available at EAFIX comprises of 3 routes as follows:
- Teleglobe 2M bi-directional
- BT 512K bi-directional
- USEI 2M upstream and 8M downstream
3. Liberalisation
In July 1999 the government officially liberalized the telecommunications market in Kenya. The Communication Commission of Kenya (CCK) was formed to regulate the sector. The ISPs which had never been officially acknowledged, were now authorized to operate after obtaining a licence from CCK. However, Telkom Kenya, formed from the telecommunications arm of the former KPTC, was allowed a monopoly to operate an Internet backbone for five years. With the liberalization, the number of ISPs has grown to 31 with 20 more awaiting licensing.
Telkom Kenya has applied to become an ISP to the consternation of ISPs who have protested to CCK, demanding also to be allowed to operate an Internet backbone if Telkoms ISP is licensed.
4. Subscriber Profile
There are currently between 30,000 and 50,000 Internet users in Kenya, with an estimated monthly growth of 300 each month.
4.1 Dial-up and Leased Line Subscribers
The main users of the Internet in Kenya are Multinational corporations, international organizations and NGOs, together making more than 50% of all subscribers. The government and educational institutions make less than 5% of all subscribers, due to the relatively high cost of the service.
4.2 Cyber Cafes
The high cost of computers has deterred many from subscribing directly to the Internet. However, cyber cafes have come to the rescue, providing access to e-mail and the Internet to those who cannot afford phone lines and computers. There are currently more than 100 cyber cafes and the number is growing rapidly each month.
5. Conclusion
The use of internet in Kenya is on the steep rise. Applications such as e-commerce and VPNs are now being used by quite a good number of businesses. The Ministry of Trade and other stakeholders are championing the use of EDI/e-commerce in Kenya.
