Kenya’s demographics and large population make it a highly attractive market for new and existing ICT players. Innovation will be critical to drive further service diversification as players look to expand their offerings through strategic partnerships and acquisitions.
The country’s information and communication technologies (ICT) market is rapidly evolving. Affordable internet prices, supplemented by significant smartphone adoption, have changed the way ICT providers do business.
“Along with innovation, service diversification, network sharing, strategic partnerships, business realignment and acquisitions will also play a key role in defining the market leader in the next five years,” says Deepti Dhinakaran, digital transformation research analyst at Frost & Sullivan. “Providers should seek to gain a first-mover advantage by adapting to market needs and emerging disruptive technologies in an intensely competitive market.”
As discussed in Kenya ICT Outlook 2017, new analysis from Frost & Sullivan’s Communication Services Growth Partnership Service program, IT service providers will look to take advantage of big data analytics and Internet of Things (IoT),, while telecommunications providers will continue to establish themselves in the broadcasting, cloud and IoT segments in 2017.
Growth of the ICT market in Kenya will be augmented by:
* Falling mobile data prices;
* Availability of cheaper digital terrestrial television (DTT) services;
* Growing demand for platform-as-a-service models;
* Increase in consumption of managed services;
* Big data analytics; and
* IoT services.
Safaricom, Liquid Telecom, Seven Seas Technologies, IBM, Tech Mahindra, and Oracle are examples of innovative companies that have diversified through a series of smart acquisitions and partnerships in order to provide services across multiple ICT sectors.
“Non-voice services, DTT, the demand for network and application services, high-value niche service segments like market research and analytics, and knowledge process outsourcing (KPO) services will indicate upward growth trends in Kenya,” adds Dhinakaran. “Furthermore, vertical-specific IoT solutions will transform agriculture, government, and public sectors.”
