PCK signs internet deal (28/02/07)

 

The Postal Corporation of Kenya (PCK) yesterday signed a two-year contract, for the provision of Internet services by Safaricom.

 
 

The contract is valued at Sh8.4 million, but payment could, however, vary upward as the billing is based on usage. The official signing comes six months after the Government intervened by appointing Safaricom to provide PCK with Internet connection last September.

This was after Universal Satspace, who had secured a 10-year contract in 2002 to provide PCK with Internet, prematurely switched off the VSAT Internet connection, alleging non-payment fees.

"We needed an alternative from which we could provide services to our consumers and through Safaricom, we have enjoyed good services in our active 110 branches," said postmaster general Fred Odhiambo.

PCK will activate 30 more branches bringing the total to 140 against its 980 branches in the country.

PCK uses the Internet connection to run its new money transfer services - Postapay, and to provide retail surfing services to the public.

Currently, PCK is sending between Sh16 and Sh17 million daily, earning a commission of about Sh1.2 million.

"We will be launching the service (Postapay) to the diaspora - Kenyans living abroad - and we expect the commission to double," adds Mr Odhiambo. In its 2002 contract, PCK was paying more than Sh200 million annually and generating only Sh30 million.

Source: All Africa

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