Internet body disputes price announcements


Image: By BiztechAfrica
Internet body disputes price announcements

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.    

Share the News

Get Daily Newsletter

comments powered by Disqus


Connectivity critical for Nigeria's ICT sector, says SES chief

Connectivity is vital for any country to fully optimise the huge potential of cyberspace, SES Sales Manager for West Africa Joy Nma Emenike tells Kokumo Goodie. Read More

Eutelsat, Facebook to partner on satellite initiative to get more Africans online

Eutelsat Communications and Facebook have announced a new initiative that will leverage satellite technologies to get more Africans online.  Read More

Alcatel-Lucent to deliver submarine broadband connectivity to oil and gas facilities off Angola

Alcatel-Lucent Submarine Networks, the undersea cables subsidiary of Alcatel-Lucent, has been awarded the development of the Sonangol Offshore Optical Cable (SOOC). Read More

MTN excels in NCA data quality tests

MTN has distinguished itself as the most reliable data service provider in Ghana, according to the results of Quality of Service data monitoring tests released by the National Communications Authority.  Read More

More institutions benefit from Airtel’s free internet connectivity

Airtel connected a further five learning institutions and one Police Station to the internet for free this week, bringing the number of institutions Airtel has connected for free to over 150.  Read More

Empresa Nacional de Telecomunicações Moçambique selects Intelsat to extend broadband services

Empresa Nacional de Telecomunicações de Moçambique has renewed its relationship with Intelsat S.A. for satellite solutions that will help the company deliver broadband connectivity to corporate networks and provide cellular backhaul services to support remote areas of Mozambique. Read More

MTN invests R1.2 billion to fund network upgrades in Kwa-Zulu Natal

MTN South Africa is investing about R1.2 billion to upgrade its network in Kwa-Zulu Natal, which includes the deployment of fibre-to-the-home (FTTH) in the scenic suburb La Lucia. Read More

Teraco interconnects Africa to the world’s financial markets

Teraco has announced a new fibre link that provides capital market participants with the reliable, high-bandwidth and high-speed connectivity required to transport critical financial data. Read More

Facebook’s mobile momentum grows in Africa

Facebook has shared new statistics revealing that 2.2 million Kenyans use Facebook every day and 4.5 million each month, while 7.1 million Nigerians use Facebook daily and 15 million are active every month.  Almost all these people are coming to Facebook on a mobile device. Read More launches free audio conferencing in Nigeria, Kenya and South Africa

The world’s largest free conference calling service is looking to grow its user base in Africa while creating new partnerships with the African carrier community. Read More


Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4Afrika


Connectivity critical for Nigeria's ICT sector, says SES chiefConnectivity critical for Nigeria's ICT sector, says SES chief

Connectivity is vital for any country to fully optimise the huge potential of cyberspace, SES Sales Manager for West Africa Joy Nma Emenike tells Kokumo Goodie.


High tech homes: Just press playHigh tech homes: Just press play

High tech, digital homes where everything is automated and connected aren’t the stuff of science fiction any longer, says BNC Technology.


Luba Freeport streamlines its sea of paper with Sage X3

Luba Freeport has implemented the Finance and Distribution modules of the Sage X3 business management solution to automate its business processes across finance and operations.