Laptop project to increase demand for data

By Macharia Kamau

The Government’s plan to issue primary school children with laptops will be a big game changer for the local ICT industry in coming years.

The one-laptop-per-child project is expected to push up demand for data services as well as other ICT services and products.

 The project is expected to cost Sh24 billion and offer 1.2 million Standard One pupils laptops beginning next school term.

Analysts from advisory service firm Deloitte say the project will increase mass usage of data, benefiting telecoms and companies offering data services. 

“The Government laptop project will have a ripple effect and create a demand for data usage,” said Nikhil Hira, tax partner, Deloitte East Africa.

Hira spoke yesterday when Deloitte launched Technology, Media and Telecommunications Predictions 2014. Other factors he said would be key in growing demand for data in the country include a rise in consumer incomes and evolving tastes, low price handsets and gradual decline in connectivity prices.

Project execution has been criticised because of Government failure to improve the education infrastructure in the country.

This includes decent facilities in some schools (some do not have classrooms) as well as supporting infrastructure like power and security.

Aligned strategies

Telecoms have already aligned their strategies to reap from the growth in data use and some are already seeing substantial growth in revenues from this stream.

The firm expects the mobile phone to continue gaining prominence in the country, with local companies expected to increasingly link their products to mobile phones, including health, banking and Government services.

Telecommunication firms are also expected to continue investing in infrastructure.

“There is still need to improve infrastructure. We have made progress but there is still some way to go,” said Hira.

BMI Research estimates the Kenyan IT market (software and hardware, PCs and servers) to be worth Sh64.38 billion – having grown from Sh52.722 billion at the end of 2012.

The  forecast estimates that it will exceed a billion dollar valuation in the next two years. Globally, Deloitte expects wearable technology gadgets to gain momentum.

Products like smart eyewear, fitness bands and watches are expected to gain currency in the market.