Kenya's mobile providers are moving to strengthen their Internet offerings in response to growing demand for services over the last quarter.

[business daily] Kenya's mobile providers are moving to strengthen their Internet offerings in response to growing demand for services over the last quarter.

Zain Kenya has announced a 25 per cent cost reduction for the unlimited Internet package in a move aimed at growing its market share in the increasingly competitive data business, while its rivals Telkom Kenya and Safaricom announced the launch of online portals geared at driving more subscribers to use data services.

Free USB modemIn a statement, Zain Kenya managing director Rene Meza said the company was now focusing on growing the data business by ensuring widespread access to the internet.

"Reliable and affordable Internet will spur growth in key sectors of the economy and also create new areas of entrepreneurship, similar to those that have been created through the introduction of mobile telephony in Kenya," said Mr Meza.

Following Zain's reduction, customers who sign up for the service will now enjoy unlimited Internet for Sh2,995 per month down from Sh3,999 and will also receive a free USB modem.

In addition, customers who subscribe to the service which is only accessible to post-paid users, will now pay a deposit of Sh5,000 down from Sh10,000, however they will be required to sign up for a minimum of 12 months to enjoy the unlimited Internet access.

On its part, Telkom Kenya became the second mobile operator to launch an online portal after its competitor Safaricom officially launched its version last week.

Telkom's Orange World is an online gateway offering subscribers news, sports, games, listings, travel information and entertainment while on the move, and signals the company's desire to tap into the growing numbers of Kenyan consumers who access the web using their mobiles.

"This will probably even be the next must-have playground accessory. Our service will be affordable and phone handset prices will probably experience a substantial price drop in the next few months," said Jean-Michel Chanut, head of marketing and Strategy at Telkom Kenya.

Last week, Safaricom launched its portal (www.safaricom.com) hoping to provide free content for its over 1.6 million subscribers who access the Internet using their phones.

Telkom Kenya will allow subscribers to its mobile service one month's free access after which it plans to charge for access to news, entertainment and information channels.

Mr Chanut said he believed that sales of WAP-enabled, or Internet-enabled mobile phone handsets would usurp current handsets as must-have gadgets in coming months.

Meanwhile, an unlikely pairing between France Telecom and stationary manufacturer BIC, has resulted in a new mobile phone which marks a shift in consumer trends as developed markets turn from high-end models to cheaper devices.

The Bic mobile phone is a pre- chargeable mobile telephone that is ready-to-use when purchased, with an inserted SIM card and free airtime.

The low-priced mobile focuses on the basic functions for a telephone: sending and receiving calls and SMSs.

The Sh3,500 phone has achieved sales of over 110,000 units since it was first launched in France in August last year and is said to enjoy wide public appeal, not least due to its functional simplicity, but also to its 'no commitment' offer.

France Telecom, who owns a share in Telkom Kenya, said it was planning to roll out the phone to the markets in which it operates.

Kenya: Telecoms Shift Focus to Internet As Demand Grows