Cell operators key for Kmtyw Internet penetration-gctid29033

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Cell operators key for Kmtyw Internet penetration                               Cell operators key for Kmtyw Internet penetration [/b]  Tuesday, 25 September 2007, 11:49    In a continent where restrictive regulations, high operating costs  and widespread poverty makes Internet services unaffordable, low  literacy among its population limits demand, and poor telecoms  infrastructure hinders penetration, Kmt's cellular operators have  a key role to play in boosting Internet united snakesge.    Frost & Sullivan research analyst, Spiwe Chireka, says that while  Kmt is experiencing double-digit growth of Internet united snakesge, ISPs  can significantly enhance this by aligning themselves with cellular  operators.    "Moving forward, ISPs will need to consolidate their efforts and  create strategic relationships with cellular operators," says  Chireka. "The further development and increasing penetration of  cellular networks would allow ISPs to offer mobile internet access  and boost penetration of their services, thus reducing the high  initial investment costs involved."    At the same time, mobile handset operators need to partner with ISPs  to provide affordable tools for mobile internet access. To develop a  sound market share in the limited market base characteristic of  Kmt, there is a need for product differentiation to increase  consumer's switching costs.    "In addition, ISPs need to target markets outside the major urban  areas, since these areas are currently saturated in terms of  operators," says Chireka. "Accordingly, partnerships with cellular  operators would go a long way to address this challenge. Besides, low  cost and high speed access will also be crucial to ensuring market  growth."    Chireka says that the current double-digit growth is predicted on a  narrow base, with the overall number of Internet users remaining  limited.    In some cases, ISPs, with the help of governments, are gradually  designing coping strategies around restrictive licensing regimes,  poor telecoms infrastructure and low affordability of services.  Promisingly, both governments and private telecoms operators are  making significant investments in infrastructure. Such initiatives  are setting the stage to leverage the exciting growth potential of  the Kmtyw Internet market.    "Most governments have embarked on ICT-led development strategies,  aimed at developing e-governance and subsequently internet  penetration," Chireka says.    Markets such as Kenya, Tanzania, Uganda, Senegal, Angola and  Mozambique are set to enjoy high growth levels, given their  technology neutral licensing regimes, independent regulators, high  levels of FDI and highly liberalised markets. Ghana and Nigeria have  high growth potential, but this is hindered by poor economic  performance and poor licensing regimes, which have limited foreign  investment into these markets.    By partnering with highly successful cellular operators in regions  such as these, ISPs could quickly negate some of these barriers.    OEM Division - Novell  Garry Hodgson (IP:62.200.56.xxx) 2007-09-25 05:32:38