South African-based Internet Solutions (IS) has secured a 51% stake in Kenyan Internet service provider (ISP) Interconnect, for an undisclosed amount, as part of a wider African expansion plan.
The company has subsequently been named Internet Solutions Kenya, with IS taking control of its assets and customer base.
It was imperative to partner with a local company that knows the local market and provides skills to support IS infrastructure, says Jacques Rautenbach, GM for Middle East and Africa. This results in an amicable arrangement where IS brings skills, branding and products to the market to assist the partner in gaining market share, he adds.
IS Kenya will soon announce a product aimed at the corporate and the small to medium enterprise (SME) market, based on multi-protocol label switching and Internet services that are available in SA, he says.
A third legal entity, Network Services, has been established within IS Kenya to deal with licensing requirements. "The network entity will provide IS Kenya with access to an international gateway, VSAT, ISP and WiMax licences, allowing the company to provide services intended for the local market."
IS chose to invest in Kenya because of its mature corporate and SME market and the imminent arrival of undersea cable services, Rautenbach explains.
Pan-African ambitions
IS, he adds, is in the midst of an African expansion strategy to position itself as a Pan-African convergence provider.
"The expansion has been driven by the demand for services created by South African companies opening shop north of the borders of SA, and the need for IS to set up a base in key African countries where local markets offer opportunities for investment."
IS has a presence in seven other countries (Namibia, Botswana, Angola, Mauritius, Zimbabwe, Ghana and Nigeria) via partnerships and will look to expand into a further five countries next year. It is also considering equity stakes in key countries such as Angola, he says.
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