Internet body disputes price announcements

INTERNET

|
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

MORE INTERNET NEWS

Fibre optic: Congo-Brazzaville releases evaluation report

The Republic of Congo has released an evaluation report on its fibre optic networks, showing that the country has already completed 53 of the 66 projects to be implemented as part of the country's Central African Backbone. Read More

Agents jostle to join Glo Xchange

The number of mobile money agents around the country has continued to swell as the Glo Xchange train moved to in Imo, Benue, Niger, Plateau and Kogi over the weekend. Read More

Samsung Electronics sets 5G speed record

Samsung has announced that it has achieved an industry best 7.5Gbps speed record and the first-ever, uninterrupted 1.2 Gbps 5G connection while travelling 100km/h. Read More

Malawi’s online job search engine acquires SSL Certificate

Malawi’s first ever online job search engine, has joined the elite in the business by acquiring an Extended Validated SSL Certificate. Read More

New life in Gabon as country hits broadband highway

The Central African nation of Gabon is about to start speeding into the highway of broadband in a bid to deliver its people from slow, expensive and inconsistent internet. Read More

Alcatel-Lucent, MTN Nigeria to deploy ultra-broadband 100G fibre-optic data network

Alcatel-Lucent is opening up Africa’s most populous nation to the benefits of ultra-broadband connectivity by launching a superfast, 100 gigabit-per-second fibre-optic network with MTN Nigeria.  Read More

MainOne partners with Lagos Garage

MainOne has signed a deal with Lagos Garage, ensuring that the 440.ng startups will have all the high-speed internet they need to build and ship their products.  Read More

Accenture, Alcatel-Lucent collaborate on ultra-broadband opportunities

Accenture and Alcatel-Lucent have formed a strategic alliance to help communications service providers and large enterprises implement integrated ultra-broadband solutions to address the challenges of rising costs and increased data consumption. Read More

Togo province’s website exposes hidden side to tourists

A new website showcasing Togo’s Kara region is being credited with an influx of tourists and travellers. Read More

Africa Holding Internet moving Cameroon’s internet

With three million followers online and five specialised joint ventures, Africa Internet Holding, a member of Africa Internet Group (AIG), is fast becoming Cameroon’s most talked about online enterprise, only 10 months since its creation. Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionSage HR AfricaMTN BusinessSchneider ElectricMultichoice

FEATURED STORY

Growing African focus on data securityGrowing African focus on data security

Beachhead Solutions’ new SA and Mauritius country manager explains the challenges and solutions around securing customer data and compliance with new personal information legislation.

IN DEPTH

Africa lags on digital migration Africa lags on digital migration

Only three African countries have so far completed the digital migration process, and serious issues are hampering the migration in other nations.  

COMPANY NEWS

VMware reports third quarter 2014 results

VMware, the global leader in virtualization and cloud infrastructure, today announced Year-over-Year Revenue Growth of 18% to $1.52 Billion in its financial results for the third quarter ...