The battle for the Kenyan telephony, television and data markets has been raised a notch higher with the launch of a service that will combine all three.
Under the Wananchi Group’s new offering, Zuku, Kenyans will now be able to enjoy the three services by paying a single fee to gain internet, telephony and television content from a single provider.
This will be a shift from what is currently on offer for the home market, especially in the area of broadcasting, where Wananchi’s new product will introduce over 90 new channels to the television rosta.
“Zuku is the epitomises convergence, it will bring together multi-channel television, broadband internet, and, in a few months, voice services. All these will be delivered through one ‘pipe’ into the home,” said Wananchi CEO Euan Fannell.
The convergence of the broadcasting, internet and telephony industries will allow consumers to enjoy more streamlined offerings from firms.
Last year, mobile telephony provider Safaricom partnered with DSTV to launch a television service on its network available through a specialized mobile handset, perhaps the market’s first example of the convergence of the telephony and television markets.
Wananchi, which is engaged in internet service provision business, has diversified its offering to include the broadcast and telephony industries, all of which it hopes to deliver to home users through a mix of cable and wireless technology.
The group is capitalizing on its recent acquisition of Mitsuminet, a cable television provider who used to offer a limited number of mostly Indian pay TV channels to clients in select areas of the city.
Zuku will see the company’s television division expand to include the whole of the Nairobi area, and will introduce more than 90 mainstream channels at prices ranging from Sh900 to Sh3,000.
Consumers will access the services through a cable connection to the home, or in areas where there is no cable connectivity, a wireless link similar to that used by mobile telephony providers.
The new offering will also allow home users to enjoy high speed internet and telephony services as well as introducing a wider range of television channels.
Wananchi is targeting 300,000 customers by the end of next year. The move marks the start of a radical shift in the way telecommunications firms do business.
The industry-wide change was precipitated by the introduction of unified licences by the industry regulator earlier this year, in recognition of the changing business.
The launch of the Zuku brand represents the first time internet, television and telephony products have been bundled into a single package, and the launch is the first of many that will see the convergence of technologies.
With the launch of Zuku, Wananchi is set to challenge the current market leader of pay TV broadcast solutions, DSTV.
The company has entered into a partnership with DSTV’s closest rival in this market, GTV, which will see GTV’s channels combined with those on offer on the Zuku brand.
Synergy
Mr Fannel said Wananchi would benefit from GTV’s offerings, including access to the English Premier League, while GTV would gain access to additional markets, through a new delivery method using cable.
GTV says it has amassed 50,000 customers across Africa compared to DSTV’s two million.
Industry estimates place the number of Kenyan DSTV subscribers at around 40,000 users. “We operate on a satellite platform, and for me, the frontier for competition in this market is content.
Customers choose providers through the content they offer,” said Stephen Isaboke, General Manager, DSTV Kenya
Mr Fannel said his company hoped to capitalize on the increased spending power of consumers by offering a diversity for a wider set of audiences.
To gain access to the service, consumers in most parts of Nairobi will be required to link their homes to Wananchi’s existing cable network.
At that point, the cable will be split into three, with one terminating at in the decoder for television services. The other two ends will terminate at the computer modem and the telephone; for internet and telephone services.
Business Daily Africa
