Kenya sees economic growth

Kenya has achieved third quarter economic growth of 6.1%, and analysts are optimistic the country is on course to returning to 7.1% growth that was realised in 2007, before the effects of post-election violence, reports All Africa.com.

Players in the Kenyan ICT sector are bracing for accelerated growth, with predictions that there will be a shift in the price wars in the data market.

"We have spent the last few years laying fibre optic cables and are now faced with saturation in major towns like Nairobi and Mombasa. Companies will be faced with a squeeze to reduce prices further, particularly in the data market," says Geoffrey Shimanyula, vice-president of Spacecom in East Africa.

The number of mobile broadband users in Africa is expected to increase from the present 400 million to 3.5 billion by 2015, states Trading Markets.com.

This is according to Ericsson president and CEO, Hans Vesberg, who says Africa is beginning to see signs of changing operator tariffs and pricing models aligned to consumer needs, especially for mobile broadband services and data usage.

“At least 1.5 million installed GSM radio base stations must be replaced (in Africa) and in addition, we see continued need for services in fields such as consulting, system integration and managed services. We estimate that our addressable market, including joint ventures, is worth $50 billion,” adds Vesberg.

Bharti Airtel has signalled its intention to cut telecoms rates further in Uganda, says The Daily Monitor.

This means the price rivalry witnessed in Uganda's telecommunications sector in the last quarter of 2010 could stretch into 2011.

Bharti Airtel CEO Manoj Kohli says: "We remain committed to offering affordable services, deepening our network coverage to include rural areas.”