Subscribe / Unsubscribe Enewsletters | Login | Register

Pencil Banner

Africa heats up as Web services battleground as Baidu faces off against Google

Michael Malakata | Jan. 28, 2013
Vendors grab for a slice of the growing mobile telecom market in the region.

In the latest example of how Africa is becoming an important battleground for Western and Asian tech competitors, Web services giant Baidu will face off against Google following the Chinese company's move last week to bring its mobile browser to the continent in a deal with France Telecom's Orange unit.

Baidu joins other Chinese companies including telecom equipment vendors Huawei Technologies and ZTE in seeing Africa as a promising market.

Baidu's announcement with Orange follows Google's move last year to enter a deal with South Africa's giant telecom operator Telkom's cellphone network unit 8ta, to offer free Internet access to mobile phone subscribers who cannot afford typical data-usage costs.

In Baidu's case, the deal with Orange is its largest international expansion to date. The deal covers 20 countries in the region, where Orange has more than 80 million subscribers. Orange will pre-install Baidu's mobile browser for users of Android-based mobile phones in Africa and the Middle East.

Orange plans to ship the first smartphones preloaded with the browser later this year. The main benefits for users will be the browser's enhanced data compression capabilities and one-click access to Web-based apps and services.

Meanwhile Google is powering the Free Zone service, which gives people access to mobile Gmail, Google+ and Web search with zero data charges. However, when a user clicks on a link or attachment within an email, they are directed to a page where they can purchase a data package. Additionally, users can search the Internet and access the first page of websites from the search results for free; however, if they click further into a website, they again are directed to a page offering data packages that require payment.

Google also rolled out a new service in Ghana, Nigeria and Kenya last year that lets Gmail users send and receive emails using the built-in SMS features on their mobile phones for free. Google's free email service is also active in Zambia through the operator Zambia Telecommunication Company (Zamtel), a government-owned telecom company.

The companies want to consolidate their positions by offering free service, to pave the way for a growing number of users paying for services, according to Amos Kalunga, a telecom analyst at Computer Society of Zambia.

"Or it may be that the companies want to control the browser first on smartphones and then later control the search," Kalunga said.

Africa's appetite for mobile Internet services has been growing steadily over the past few years, mainly as a result of the flattening growth curve in voice communications in the region's more mature markets, forcing operators to cut prices and compete more aggressively on the provision of data services.


1  2  Next Page 

Sign up for CIO Asia eNewsletters.