US tech giant Facebook has launched its
low-cost internet service in Kenya, setting the stage for a fight for
bottom of the market consumers with telecom operators Safaricom, Airtel
and Telkom Kenya.
Surf
Kenya, Facebook’s local partner, chief executive Mark Summer said his
company is planning a countrywide rollout of the service in the coming
months in pursuit of the social media giant’s plan to launch affordable
high speed internet to the under-served.
The Facebook product is priced much lower than what is currently available in the market.
The
social media giant is charging rock bottom prices for internet
bandwidth with plans that cost as low as Sh10 and Sh20 for 40 megabytes
(mbs) and 100mbs of data, respectively.
Kenya’s
telecoms giant Safaricom charges Sh50 for 65mbs while Airtel and Orange
offers 50mbs and 400mbs for the same amount respectively.
Weekly
Facebook Wi-Fi package is priced at Sh50 for 300mbs and Sh100 for
500mbs while a monthly plan is priced at Sh200 (1.25 gigabytes (gbs) and
Sh500 for 3gbs. The Facebook product comes with speeds of up to
10Mbps, making it a potentially attractive offer for low-end market
internet users. Facebook has already switched on the service in 10
satellite towns around Nairobi and has announced plans to introduce the
product in Mombasa and Kisumu by end of this week.
“Kenya is Africa’s tech hub and it fits well into
Facebook’s strategy. We are happy to see the commercial roll-out of the
Express Wi-Fi service that offers consumers affordable access and gets
internet to the many people that remain underserved,” Facebook’s
regional head of partnerships for Express Wi-Fi in Africa Uche Ofodile
said.
The service is targeting the millions of Kenyans
who remain without access to the internet as well as a share of the 37.7
million Kenyans with access to the internet, according to the latest
(July-September) statistics from the Communications Authority of Kenya
(CA). Internet penetration in Kenya stands at 85.3 per cent.
Facebook’s
Express Wi-Fi is currently accessible in Nairobi’s satellite towns of
Ongata Rongai, Limuru, Kiserian, Kitengela, Kiambu, Mlolongo, Ngong,
Ruaka, Thika and Wangige where the firm has switched on more than 100
hotspots.
To access the internet, one needs to activate
the wi-fi and select Express Wi-Fi by Facebook hotspot, where the
prompt re-directs the user to the operator’s web address for a one-off
registration.
Users are required to buy data bundles from the recruited agents also listed on the Surf Express Wi-Fi website.
The
Express Wi-Fi has a 10-day offer where users access 100MBs daily
package for free after which they are required to top up through
recharge agents recruited in areas where it is available. A consumer
needs to be within a range of about 250 metres to access the internet,
which comes with speeds of up to 10 mbps.
Facebook
said plans are under way to expand the reach per hotspot. The service is
currently concentrated in public places such as shopping centres,
office blocks and bus terminus. The tech giant is rolling out the
service in partnership with Internet Solution and Surf Kenya, which
rides on the former’s infrastructure.
The firm said it
was open to working with other players in the market. “Kenyan consumers
need to get high speed internet at a low-cost and Surf is driving this
agenda using Express Wifi by Facebook. The internet is available in
places where people spend most of their time as it remains core to us to
get the affordable service to the people,” said Mr. Summer.
Express
Wifi service is unlike Free Basics, which gives people unpaid access to
information on useful services like health, news, jobs and local
government information among others.
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