Alphabet GOOGL is making efforts to connect the rural areas in Kenya through Internet with the aid of the Project Loon.
Notably, Alphabet’s Loon is utilizing Internet beaming balloons to provide high-speed Internet to the people residing in the rural areas of the country.
Reportedly, the project plans to use a fleet of 35 or more balloons to provide 4G LTE service. Initially, the internet service will cover 50,000 square kilometers in the western and central parts of Kenya.
The latest move is in sync with the company’s strategy of increasing presence in the Internet services market. The move will also help Google in strengthening footprint in Kenya, which bodes well for global expansion. Also, the deal highlights the reliability of Loon balloons and its underlined technology.
In addition, this will help the Kenyan government in addressing the needs of its rural population.
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Alphabet’s Continuous Connectivity Efforts
Google remains focused on providing high-speed Internet services globally. The company’s latest move augurs well for the expansion of the connectivity business.
With the Project Loon, the company aims to connect the world with Internet by providing high-speed Wi-Fi access to remote areas of the planet.
In addition to the recent move, Google signed a deal with Vodacom, an Africa-based mobile network operator, in May. Per the deal, Loon’s Internet beaming balloons will be leveraged by Vodacom to offer mobile network access to un-served and under-served parts of Mozambique — Cabo Delgado and Niassa provinces.
In addition, Alphabet signed a deal to use high-altitude balloons to connect the rural communities in Peru to the Internet.
All these endeavors will continue to aid the company in increasing penetration in these developing countries.
The company is moving full steam ahead with the objective of improving Internet connectivity across the world. It strives to address the challenges of poor connectivity prevailing in these countries with its growing presence.
The selection of Project Loon by Kenya is a positive. Per a 2019 report by the Alliance for Affordable Internet, only 28% of Africa's 1.3 billion people have access to the Internet.
Google is well poised to reap benefits from Africa, which still remains untapped.
Zacks Rank & Stocks to Consider
Currently, Alphabet has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Wayfair Inc. W, eBay EBAY and Amazon AMZN. While Wayfair and eBay sport a Zacks Rank #1 (Strong Buy), Amazon carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Wayfair, eBay, and Amazon is currently projected at 23%, 12.4% and 24.5%, respectively.
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