FEATURE-Broadband spurs new businesses and ideas in Kenya

Thu Jun 24, 2010 2:30pm GMT

[-] Text [+]

* Faster Internet gives rise to new businesses

* Lack of data protection laws seen curbing growth

* Power outages, political stability seen as challenges

By Duncan Miriri

NAIROBI, June 24 (Reuters) - When Kenyan graduate Roy Wachira, 25, set out to start his first business, he turned to the Internet, whose growth in the east African nation is spawning opportunities unthinkable even a year ago.

Wachira runs a free social photography site that allows users to view special occasions or travel photos online and provides firms such as telecoms operator Safaricom (SCOM.NR: Quote) with a channel to reach their targeted consumers.

The site is one of many innovations in east Africa's biggest economy spurred by faster Internet speeds through three fibre-optic cables which link Kenya with the rest of the world.

Since the arrival of the TEAMS and SEACOM cables last year and a third one called EASSy last March, costs have fallen to as low as $22 per megabyte from $4,000 previously. Usage has jumped to 15 gigabytes from 1.8 gigabytes eight months ago. Continued...

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