Safaricom faces costs uphill in 5G network rollout

Leading telecoms operator Safaricom is expected to face costs constraints as it commences the commercial rollout of the advanced 5G network in the country.

The operator unveiled its 5G network to customers on Thursday after piloting the high speed internet services from March last year.

The launch nevertheless revealed the high cost accompanying the next generation internet connectivity even as it expect 5G device costs to come down over the medium term.

Customers seeking to connect their homes to the 5G network will for instance be required to obtain a 5G router at Ksh.25,000 in addition to a Ksh.5000 set up cost.

This before purchasing data bundles whose cost ranges from Ksh.3,499 for a 10MBPs package and Ksh.14,999 for a 100MBPs connection.

The operator nevertheless says it will leverage financing solutions to allow customers to own the key 5G devices including 5G enabled smartphones.

“The adoption of 5G smartphones remains low largely due to the high cost of devices. We will continue to work with our partners who supply devices and leverage our pay as you go device financing solutions like Lipa Mdogo to make devices available,” Safaricom Plc CEO Peter Ndegwa said.

Owners of 5G enabled smartphones will meanwhile wait until December to receive bundles tailor-made for the new network.

Currently, only one out of every three Kenyans own a 4G device pointing to the low ownership of devices with access to high speed internet.

Safaricom has nevertheless achieved traction in on boarding 5G devices to its network with 200,000 5G devices connected to its network at present.

The 5G network offers customers high speed connectivity to the internet with low latency and is set to complement Safaricom’s high speed fibre network.

“This move speaks to our strategic intent of being a digital lifestyle enabler and our commitment to always deliver the most advanced technologies to our customers,” added Mr. Ndegwa.

Safaricom currently has 35 5G sites serving the Counties of Nairobi. Kisumu. Kakamega, Kisii and Mombasa.

The operator plans to reach 200 5G sites by March 2023. At this point the operator envisions to have connections in at least 10,000 homes and businesses.

According to Safaricom Fixed Data Lead Franklin Ocharo, 5G will allow the operator to deliver high speed internet connections to areas unserved by its current fibre network which has presently passed 400,000 homes with over 200,000 homes connected to the network.

“From the pilot, we have learned of the need for 5G to power businesses and homes. There are places that require fibre like speeds but we have no coverage in such places. This is the potential we see,” he said.

The 5G network averages internet speeds of between 250 and 350MBPs compared to 4G’s average of 30 to 50 MBPs.