Internet body disputes price announcements
INTERNET| Aug. 18, 2012, 3:32 p.m.
By John Churu, Gaborone, Botswana
The Botswana internet Services Provider’s Association (BISPA) which is the only industry body in the country that looks after the collective interests of the internet community, has rejected the recent pronouncement by the government that there has been a price benefit to Internet Service Providers.
“We feel, however, compelled to respond to recent press announcements that there has been a price benefit to ISPs of 59% as a result of WACS capacity. We find these statements are factually incorrect and unfortunate in the way they created false expectations in the market,” said a BISPA statement.
According to the BISPA: “BTC announced a reduction in the wholesale price of bandwidth by up to 59%. Unfortunately none of the announced products has been reduced in price by this much. The majority ISPs who will be purchasing on a 3 year basis will, at best, make a saving of 30-46%.”
It added: “As BTC is aware, the wholesale price of is only one component of the cost of providing internet services, they should therefore have been sensitive to this fact and clearly identified that the percentage quoted do not translate into percentage discount on the retail prices.”
The organisation said a good example of a cost calculation must be factored in is the continued devaluation of the Botswana Pula. Since BTC passes the foreign exchange losses to ISPS every quarter, and since consumers do not expect to pay higher prices to absorb theses costs, price reductions such as these help in buffering this cost. “Therefore, understanding the above explanation, BISPA anticipates that the actual retail price reduction will be the 10% to 15% range.”
BISPA added that there has been no announcement of reduction in the wholesale ADSL bandwidth prices from BTC. The wholesale ADSL price is the price that BTC charges to ISPs who resell their ADSL service and therefore one would expect, since BTC’s input costs have been lowered, there should be some percentage discount which they would pass on to ISPs, which would then allow ISPs to reduce the prices on ADSL.
“ADSL subscriber should note, and as an example, on the lowest priced product, that the internet portions or their ISP charges only contributes perhaps 46% of their overall bill. 54% is actually what they pay directly to BTC and again, this price has not been reduced,” complained the local internet body.
Accordingly, the new pricing will only be available to ISPs who sign a new contract with terms that many ISPs find irresponsible to contract under. Even though BTC’s announcement stated that the changes would be effective from 1st of August 2012, their letter made it clear that pricing would not be available until at least several weeks later.
“Further delays in receiving these prices are also anticipated as each ISP and collectively as BISPA we try to negotiate the terms of the contract to be more in line with acceptable practice,” explained BISPA.
MORE INTERNET NEWS
MTN launches a Young Graduate ProgrammeMTN Cameroon, leader of the telecommunications sector in Cameroon has announced the launch of its “MTN Young Graduate Programme’’. Read More
Vodacom trains 25 female secondary school students on IoTsVodacom Business Nigeria has trained twenty-five female students of Clemmy High School, Agodo-Egbe, Lagos, on Internet of Things (IoTs) as part of its support for the Girls in ICT programme. Read More
Africa, preparing to become an Always-On continentThere is significant potential for Africa to capitalise on the move to Always-On, says Veeam Software. Read More
Ericsson and MTN bring LTE experience to GhanaMTN Ghana has selected Ericsson to deploy its new LTE network in the Greater Accra region. Read More
SEACOM gathers momentum in SA business marketPan-African telecoms enabler SEACOM has announced that it has grown its South African base of channel partners servicing the business market to more than 65 companies of all sizes, up from 20 in October last year. Read More
MTN Business encourages transport and logistics industry to realise the impact of M2MIf embraced and implemented properly, M2M has numerous abilities to provide South African fleet managers with useful information regarding fuel usage, routing, and vehicle diagnostics, says MTN Business. Read More
Nigeria satellite resources to boost economic growthThe Management of NigComSat says Nigeria’s satellite resources are primed to help the nation in accelerating robust ICT infrastructure to boost economic development for the country. Read More
Win for Kenyan bloggers as court quashes controversial lawBloggers and social media users in Kenya have with sighed relief with quashing of a contentious section of law that State has been using to prosecute individuals who were mostly perceived to be critics of the establishment. Read More
Africa-1 Consortium signs MOUMTN Group, PCCW Global, Saudi Telecom Company (STC), Telecom Egypt (TE) and Telkom South Africa have signed an agreement on the construction of the new “Africa-1” submarine cable system. Read More
FEATURED STORYGovernment should encourage youths in ICT early
Youths should be given more encouragement to develop their ICT skills, an 11-year-old app developer told Kokumo Goodie.
BEST READ NEWS
IN DEPTHIBM Opens First Cloud Data Centre in South Africa
IBM is opening a new IBM Cloud Data Centre in Johannesburg, South Africa. The new cloud center is the result of a close collaboration with Gijima and Vodacom and is designed to support cloud adoption and customer demand across the continent.
COMPANY NEWSEnhancing your security posture to fight new ransomware threats
Petya ransomware is proving to be one of the top cybersecurity stories of 2016.Arbor stops malware in its tracks
There is always a substantial amount of banking trojan activity taking place, however, recent developments have intensified the threat landscape.