Business News

Data rates cut for small businesses

By JEVANS NYABIAGE
Posted  Friday, February 5  2010 at  20:39

Data carrier, Kenya Data Networks has sent the internet market back to the drawing board, with the launch of the cheapest broadband in Kenya.

In a move that could put more pressure on other players, the firm unveiled Butterfly Optic Express, a solution that enables Small and Medium Enterprises and businesses enjoy high capacity and at low-cost to promote their growth.

Although many internet players had suggested last year that many of their clients were more interested with capacity and not cost, KDN says it has found that many businesses shy away because of high prices.

For the new packages, it will cost Sh4,000 per month for 1Mbps for unlimited internet access. The company also waived installation, integration and equipment fees, factors that have been barriers to internet access.

According to Kai Wulff, the firm’s chief executive officer, the solution will enable transfer of large files, the use of voice over internet services and access to web based streaming and downloads of videos on demand.

The solution will also come with a free Izzytalk number (VOIP), free Butterfly email addresses and free email domain hosting.

“It is important for ISPs to use the successful terrestrial fibre infrastructure as a guide for new offerings that will support the rapid growth of the SME and small office and home office markets in the country and regionally,” Mr Kai said.

Those who opt for 256 Kbps will pay Sh1,000 per month while 512 Kbps (Sh2,000), 2Mbps (6,000) and 5Mbps will cost Sh8,000.

An SME that uses 1MB per month will now be able to download 324,000Mbps in one month. This is equivalent to 324 gigabytes of data in a month, for which SMEs and SoHos will be paying only $1 cent per MB. The upshot is that consumers will now pay only about $100 for 5MB as opposed to $6,000 for 1MB a few months back.