Google’s Internet Company CSquared to be headquartered in Nairobi
Google has injected billions of shillings in CSquared, its Nairobi-based broadband infrastructure.
he project aims to lower broadband costs for both carriers and customers.
For this project, the giant search engine has signed an agreement with Mitsui & CO. ltd., Convergence Partners, and International Finance Corporation (IFC) to invest in CSquared.
These companies have signed an agreement to invest in CSquared.
The broadband infrastructure company is currently focused on building wholesale metro fiber optic networks to expand access in the Sub-Saharan Africa region.
Kenya is not the only area of operation since the company has operational networks in Uganda and Ghana.
Plans are also underway to extend its services to other African countries.
CSquared is set to operate as an independent company with cumulative capital commitments of $100 million.
What do the partners bring to the table?
The strategic partnership will benefit from Google’s extensive knowledge and experience in deploying and carrying out metro infrastructure operations through Project Link in Ghana and Uganda.
Google’s business model depends on internet access to reach more customers and this partnership will help the giant search firm to continue offering users and companies a rich online experience and help them optimize their internet consumption.
Convergence Partners has been investing in the ICT sector in Africa; hence, it brings value adding experiences.
IFC brags rich 40-year experience in support and development of the telecommunications sector in Africa.
Mitsui’s strategic investment in the ICT sector, global presence in the business world and cross-industry capabilities will also strengthen CSquared in its quest to increase access to the internet across Africa.
Marian Croak of Google said that the partners hope to launch a high speed yet affordable infrastructure to increase internet access across Africa.
He quoted Project Link as an example of an initiative that has proved that the impact of shared wholesale infrastructure.
This can only mean that CSquared will bring more infrastructure to more service providers and their customers.
Project Link initiative was rolled out in 2012 to provide affordable and reliable broadband in Africa’s metropolises.
It was in 2013 that Google incorporated Project Link in CSquared with the aim of increasing internet access and lowering costs.
CSquared proceeded to build over 800KM of fiber in Uganda and over 840 in Ghana.
Is the investment in CSquared promising?
Yes, it is.
There is an opportunity in Africa since statistics show that only 6% of Africans have access to broadband internet.
This has, in turn, made it difficult for the region to achieve desirable human and economic potential.
Also, fiber is becoming gradually important for users to access the internet especially large businesses, SMEs, educational institutions, research firms, and areas of residence.
But we may have a problem:
Fiber optic does not come cheap.
The installation and consumers costs are usually high; hence, mass subscriptions can only be evidenced if the prices are fairer than those of other fiber companies.
CSquared does, however, offer superior quality, wholesale services to licensed operators.