Mobile operator, Orange Kenya is seeking additional funding to allow it to boost its data and cloud computing services.
With competition in the voice sector keeping call prices low, the company wants to take advantage of Kenya's expanded bandwidth to increase its presence in the data sector - forecast to be the country's next boom industry - in a move that could foreshadow similar moves by other companies in the near future.
The company hopes to obtain extra funding by the middle of next year. Though CEO Mickael Ghossein did not specify the exact figure the company was seeking, he did say Orange Kenya's 2012 budget would include $40 million for investment, the same amount as this year, but half that of 2010 and 2009.
To secure additional funds, Orange will first request support from its majority owner, France Telecom, and the Kenyan government, but Ghossein confirmed that the company would also approach local and international markets and financial institutions, including the International Monetary Fund.
Orange has been forced to expand its data and computing services as a result of fierce competition in the voice sector that has driven prices down. The company is set to review its calling rates in the next few weeks, with Ghossein confirming that while subscriptions have been rising, revenue has remained flat.
In seeking additional revenues, the company is focusing on data services and cloud computing, which experts claim are areas of real opportunity for Kenyan businesses. “The next big wave is cloud,” said Eric Mujera, business development manager of Sevenseas Technologies Group. “You will see a lot of things happening in the cloud.”
Andrew Waititu, SAP East Africa GM, agrees: “In the next five years, 80% of all solutions will be available in the cloud.”
The move is part of a drive across Kenya's mobile phone companies to penetrate the Internet market. Just last month, Orange unveiled the Flybox, enabling customers to set up WiFi connections within their homes and offices, while yuMobile has introduced a Gmail SMS service.
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