African ISP Cajutel to Use Blockchain to Increase Internet Access
High speed Internet provider, Cajutel, is using blockchain technology as a tool to raise capital for the development of internet services in Guinea Bissau and Guinea. By providing this, the company hopes to improve the economic and living standards of the area.
The CEO of Cajutel, Andreas Fink, explains that the company had embraced the blockchain and ICO methodology of raising capital, in other to open up opportunities for investment to many more people, rather than limiting it to the traditional wealthy investors. This was deemed necessary due to the existing difficulty in getting huge investors and venture capitalists to embrace the project using existing processes.
According to Fink, the company’s ICO is different from most other token sales because in Cajutel’s case, company shares are exchanged for cryptocurrencies. Unlike other ICOs where tokens bought by investors exist afterwards as independent entities in the cryptocurrencies marketplace, Cajutel’s tokens are tied directly to the project as shares. This implies that investors are offered the opportunity for long term investment benefits, as purchasing such shares automatically qualifies an investor as a shareholder of the company.
Fink explained: “In our case, we are using the ICO in a more traditional way, which means that we are raising funds against the shares of the company, because at the end of the day you will have investors who put money down and expecting a return, they want to participate in your revenue which you are giving up.”
As a tool for national development, Cajutel is looking for an investment of $30 million to cover Guinea-Bissau and Guinea, or a minimum of $12 million for a slower building plan to only cover Guinea-Bissau. Cajutel’s aims to build the most cost effective broadband access network, and to provide state of the art communications for its customers –creating a boost to the education and economy. The company also plans on delivering affordable, reliable internet communication to the local market.
Fink added: “Catujel will be the fastest Internet provider in the area for the public, outperforming existing operators offering by a factor of 10x to 100x with an at least 30 percent cheaper price. This enables Internet technologies not currently present in West Africa simply due to lack of bandwidth and too high prices. It makes it affordable for the general public to get access to the Internet. That is why only less than 2 percent have access today. So there’s 98 percent available to be grabbed by us.”