Fiber Optic Cables: Business Community Prepares for New Business Opportunities

The business community pins hopes of renewed wealth creation possibilities of the new fiber optic cable expected to start in June 2009

The business community has gone flat out to get ready for the new business opportunities expected to be created with the new fiber optic cable. The cable is expected to start functioning in June 2009.

Ghana and India, two countries being mentioned as having benefitted from such connectivity are providing the motivation to the business community. In both countries fiber optic cables are said to have moved the economies into the international circuit with Ghana emerging as a significant source of cheap labor for the US and European markets.

Three cables are planned for Kenya. And the first of them, Seacom is expected to arrive in Nairobi from Mombasa by June, 2009. Once the cable goes live, the business community has been informed, the cost of internet services will go down by more than 90 per cent. This will lead to increased uptake of information technology solutions. The end result will be increased opportunities in business, health and education.

Seacom Cable

The Seacom cable will connect Kenya, Tanzania, Mozambique and other eastern and southern Africa nations with India, Europe and the Middle East.

Other cables are The East African Marine Systems (Teams) project and the east African Submarine Cable System (EASy. Teams is expected to be operation by July, 2009 while easy is expected to start operations in 2010. Experts say the new internet system will bring along the need to adjust the economy to 24/7 working hours which in turn will require social adjustments.

The outsourcing industry is expected to be among those that will greatly benefit. According to experts, in India where the cable has been operational, business process outsources has evolved leading to the dynamic growth of its cities.

“The Indian Government has given incentives to those setting up centers in the rural areas. This has reduced rural-urban migration and helped to distribute wealth equitably in different parts of the country,” says the chairperson of the Kenya Business Process Outsourcing and Contact Centre Society, Gilda Odera, adding that since it has worked well for India, it will also work well for Kenya.

“But for it to work well, good policies need to be developed in the country from the onset. Proper policies will create opportunities around the country and promote development in many parts of the country.” The Kenya BPO Society is an umbrella body whose work is to promote business outsourcing locally and internationally.

INEWS: Liked this story?

• - subscribe to our email subscription
• - subscribe to our twitter updates
• - subscribe to our rss feeds
• - subscribe to our magazine and get more

Related stories...

1. Kenya:High-return Investment Opportunities in the Year 2010
2. Making Thika The Choice For Business
3. Malili E-City: The Metropolis to Pull Kenya into Industrialized Nation Status