Telkom Kenya has raised the competitive stakes in the home Internet market with a new service that allows access through existing landlines, saving users substantial in installation costs.

Because it is offered on fixed lines rather than on the wireless technology of its competitors, subscribers to Nyumbani Internet, as the Telkom service is dubbed, will be spared the costs of modems which range between Sh2,999 to Sh4,999.

Most of Internet service providers (ISPs) are scrambling for a share of the home Internet market, a significant shift from the yesteryears when corporate customers were all the rave.

Other than allowing their subscribers to use the existing landline infrastructure for both voice and data, the service also provides a ready solution to the high costs associated with last mile connectivity, that is, the problem of how to connect ISPs' telecommunication infrastructure grid to home users.

A dearth of last mile connectivity solutions is being blamed for the slow uptake of the home Internet services.

High speed internet access stands at 15 and 5 per cent in corporate and residential areas respectively.

However household penetration of high internet access using fixed lines is below 0.5 per cent with an overall landline penetration of 1 per cent.

As such, if Telkom Kenya is to have a significant impact on the home Internet market with this new service, it connect more people to its landline services.

To this end, the company on Tuesday launched a drive to increase the uptake and usage of the firm's landline service by introducing new features that will enable customers to use their existing handsets for both voice and data services.

The Telkom Fixed Bundle will be the first plug and play fixed line Internet solution in the country with its ability to split the single connection for both data and voice by simply connecting the cable to a computer.

This new service will enable small business owners who run home-based operations to use the Internet for extended periods without having to worry about running out of money.

While making the announcement, Telkom Kenya chief executive, Mickael Ghossein, said that this was the first time that the landline phones in the country would serve a dual purpose.

Affordable price

"All that the prepaid phone owner will need to do is buy a Telkom Fixed Line Bundle at sh2,000 and use the handset to both browse the Internet and make phone calls," said Mr Ghossein.

He noted that Telkom Fixed remains a core part of Telkom's convergence strategy to deepen penetration of residential areas, home offices and small and medium businesses across the country.

"We have established that fixed line services are still relevant here because they offer an affordable, high quality voice and data service delivery option and are often used to compliment and strengthen optical fibre cable and wireless telecommunications services," said Mr Ghossein.

The Telkom Fixed Bundle priced at a most attractive and affordable cost of Sh2,000 which translates to Sh1 per minute, will enable customers make calls and browse the net from the comfort of their homes.

Call charges from a Telkom Fixed line to another Telkom Fixed line or to and Orange Fixed Plus line will be charged at Sh1 only, whilst calls to Orange Mobile will be charged at a special rate of sh3 per minute.

Across network charges will be at a flat rate of Sh14 (per second billing), with international calls charges, currently the most cost effective in the market remaining the same.