Mobile threatens Tanzania’s internet cafes

BUSINESS

-
Image: By BiztechAfrica
Mobile threatens Tanzania’s internet cafes

By Hudson Kazonta, Dar es Salaam, Tanzania

Owners of internet cafes in Tanzania say they are facing a growing number of technology challenges which may force them to change their billing methods or look to other lines of business.

Among the challenges facing them, they say, is the high data prices they are being charged by internet service providers, the availability of mobile phones which can access internet and the growing availability of modems provided by telecommunications companies.

One such internet café owner is Polyasi Dickson, the owner of the Bright Internet Cafe in Singida Town. He says while the costs of staying in business are increasing, he can not afford to increase his fees. The availability of mobile internet services is a threat to his business, he says.

Dickson says previously, his internet café charged users Tsh. 1500 per hour which is equivalent with 1 USD. “But now it is not easy to get customers, since people changed and started using modems,” he says.

“For example, for Tsh 2000 a Vodacom customer can buy 50MB of data and he or she can use for one month before it expires. In my internet café, Tsh2000 will last for one and half hours only.”

Because of the cost savings, many customers are now changing to modems. Internet cafes are starting to lose customers and seeing a loss every month of its operation.

Dickson says: “The price which is charged by the service provider is still the same while the number of customers using internet cafes is decreasing daily.”

He says when using TTCL broadband services, for downlink speed of 1 Megabyte per second (Mbs), which is unlimited download, the price per month is Tsh. 100,000 which is approximation of 67 USD, but at the end of the day he collects Tsh 90,000/-

“This makes the business too hard to continue with since it doesn’t produce any profits. You still have to pay for house rent, pay for cafe attendants and other charges like electricity bills,” Dickson says.

While he feels the growing availability of smarter mobile phones and modems to access internet is good for development as a whole, this progress is negatively impacting him and others like him.

Internet café owners are being forced to look for other jobs or businesses, since cafés are not producing the profits they did in years past, he says.

Around five million Tanzanians now have access to the internet, and this number is growing rapidly.



Share the News

Get Daily Newsletter

comments powered by Disqus

MORE BUSINESS NEWS

Further African expansion for Phoenix

Phoenix Distribution, a leading broad-based distributor on the African continent, has expanded its office in Nairobi, Kenya, in a move to better serve its partners in East Africa.  Read More

Garmin seeks business partners in West Africa

Garmin is hosting a trade delegation in Accra, Ghana from the 12th to 16th May 2014. Read More

Orange Telkom not closing Kenya business: Ghossein

Speculation that Orange Telkom Kenya would be closing its Kenyan operations has been put to rest. Read More

Dimension Data enters Ghana’s IT market

Dimension Data, a South Africa-based ICT solutions and services provider, has announced its entry into the Ghanaian ICT market. Read More

Glo rewards business partners

Globacom has showered 53 high-end vehicles and other prizes on its trade partners responsible for distributing Globacom’s products and services across Nigeria. Read More

Worldwide PC shipments decline

Worldwide PC shipments totalled 76.6 million units in the first quarter of 2014, a 1.7 per cent decline from the first quarter of 2013, according to preliminary results by Gartner Read More

Axis Solutions becomes first VMware Premier Partner in the WECA Region

Axis Solutions, a Pan-African ICT solutions provider headquartered in Harare Zimbabwe, is the first VMware partner to become a Premier Partner within the WECA region.   Read More

Nigeria to spur Oracle's African drive

Oracle Corporation has assured that Nigeria will be the centerpiece of its developmental drive in Africa. Read More

Pivot East nurtures promising startups

Pivot East, an innovative mobile web competition geared towards nurturing the growing ICT talent in East Africa, is providing an ideal platform to grow mobile web startups. Read More

Phoenix Distribution unveils new, interactive website

Phoenix Distribution, currently the leading value added software and CES distributor across the African continent, has redesigned its website, making it easier to use for clients and partners alike. Read More

PRESS OFFICES

Sage ERP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionSage HR AfricaMTN Business

FEATURED STORY

Kenyan bloggers get their act togetherKenyan bloggers get their act together

Bloggers seem to be gaining a formidable position in Kenya’s online media fraternity, reports Semaj Itosno.

IN DEPTH

E-waste threatens Ghana’s beachesE-waste threatens Ghana’s beaches

Many beaches in Ghana, already stressed by pollution and poor maintenance, are now facing a new threat: e-waste.

COMPANY NEWS

Further African expansion for Phoenix

Phoenix Distribution, a leading broad-based distributor on the African continent, has expanded its office in Nairobi, Kenya, in a move to better serve its partners in East ...