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

Building an African Dream: The Wyzetalk journey

Enterprise social networking company Wyzetalk examines the challenges and opportunities it encountered as a startup in Africa. Read More

African organisations under pressure to sharpen skills retention and employee engagement

Businesses across major African economies such as Kenya and Nigeria are coming under increasing pressure to align their strategies for retaining talent, compensating employees and engaging with their workforces with good international practices. Read More

The Workplace of the Future

Philip Gregory, Senior Regional Executive: Johnson Controls GWS, Middle East & Africa, talks about the workplace of the future, how it will impact the workforce and how businesses can navigate the tension between employee demands and the needs of the corporation. Read More

New MTN boss Ebenezer Asante starts work at MTN Ridge office

The former Chief Executive Officer for MTN Rwanda Ebenezer Asante has started work on Friday as the new CEO of Ghana’s leading network operator MTN at its plush Ridge Head quarters in Accra. Read More

Tigo Ghana CEO 2nd on Sweden’s list of 75 young and promising women

The CEO of Tigo Ghana limited, Roshi Motman, has been named as the second most young, promising and prominent female executive on Sweden’s tall list of 75 outstanding women.   Read More

Safaricom non-voice revenue, subscriber numbers show strong growth

Safaricom has reported a total revenue increase of 13% to Kshs 163.4bn, with non-voice service revenue increasing by 27% to Kshs 68.8bn.  Read More

She Leads Africa launches 2015 Entrepreneur Showcase

The premier platform for young female entrepreneurs across Africa has launched this year’s competition, with a $15,000 cash prize for the winners. Read More

Africa highlighted as high potential tech market

Africa’s trade potential has come under the spotlight at the 5th annual DHL Global Technology Conference in Dubai. Read More

Liquid Telecom names new Group Managing Executive

Willem Marais has been appointed to the post of Group Managing Executive for Liquid Telecom Group and also joins as the Chief Executive Officer of Liquid Telecom South Africa. Read More

Airtel, Oando seal strategic partnership deal

Airtel will gain a retail presence at Oando stations in line with a new partnership deal signed by the two companies. Read More

PRESS OFFICES

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

FEATURED STORY

The transformative power of affordable smartphones and unlimited data in GhanaThe transformative power of affordable smartphones and unlimited data in Ghana

Smartphones are helping transform their lives of ordinary people in Ghana, Reports Nana Appiah Acquaye.

IN DEPTH

NIMC infrastructure must be managed by credible people: NIMC chiefNIMC infrastructure must be managed by credible people: NIMC chief

NIMC’s chief speaks to Kokumo Goodie about the role of the NIMC and his own legacy.

COMPANY NEWS

Microsoft, IICD launch employability hub in Ghana

Microsoft Ghana, in partnership with the International Institute for Communication and Development, has launched the TizaaWorks online platform, a one-stop online hub for employability and entrepreneurship.