In a bid to capture the regional data market, South Africa-based mobile telecom operator Vodacom has launched the Linkbook, a low-cost laptop designed to provide users with simple and affordable Internet access.The Linkbook runs on Ubuntu Linux and offers Open Office, embedded SIM (subscriber identity modular) cards as well as two USB ports, according to company officials. The laptops will be offered on a 24-month contract at a subscription price of US$26.50 per month.Vodacom, with operations in the Democratic Republic of Congo (DRC), Mozambique, Lesotho and Tanzania, is the first mobile service provider in Africa to launch computers for Internet access to its subscribers.

The launch highlights stiff competition in Africa's broadband market, with service providers now competing to capture the lucrative data market.

Even though South Africa is the largest economy in Africa and the continent's second-largest telecom market, the country has a low penetration of computers, due to the high cost of technology and Internet services.

"Computer penetration in Africa has been less impressive compared to mobile phones because of the high computer costs. If Vodacom rolls out their new computers in the region, penetration will go up within just a short period of time," said Edith Mwale, telecom analyst from Center for ICT Development.

Mwale said the launch of the low-cost computers by Vodacom will likely force other mobile service providers including MTN and Zain to make and launch their own versions of low-cost computers for data and Internet services, or they will lose the data market.

Vodacom has already invested more than $230 million in the establishment of Vodacom Business to provide converged services to corporate and other data services. The company has been focusing on expanding its data services in order to take on MTN across Africa.

In February this year, Vodacom dropped its rate for broadband connectivity in a bid to capture more subscribers in the data market.

Competition in the data market has especially been heightened by the arrival of undersea cables including Seacom and Teams cables. MTN has also recently reduced the cost of broadband services in order to increase data traffic.