Rwanda and East Africa in general, are experiencing a surge in international broadband connectivity and inland networks. These projects, according to commentators, are expected to act as a vector for innovation, stimulating both innovative products and business models, thus helping to overcome traditional infrastructural constraints and reduce business costs.
Rwanda and East Africa in general, are experiencing a surge in international broadband connectivity and inland networks. These projects, according to commentators, are expected to act as a vector for innovation, stimulating both innovative products and business models, thus helping to overcome traditional infrastructural constraints and reduce business costs.
Some Internet Service Providers (ISPs) in Rwanda and East Africa in general, have signed deals with undersea fibre-optic cable operator SEACOM where the former have purchased international broadband capacity from the latter.
In Rwanda, Altech Stream Rwanda, Rwandatel and New Artel Rwanda have signed deals with SEACOM.
Rwandatel acquired 155 Mbps with options to upgrade overtime, while New Artel Rwanda will tap 620 Mbps for social and commercial use, as Altech Stream Rwanda has started accessing international broadband from the SEACOM.
New entrant TIGO also said on Thursday in its first press briefing ahead of the official launch of its operations in Rwanda that the company is negotiating for connectivity to SEACOM high speed broadband cable.
Rwanda is also connecting via other bandwidth fibre optic cable systems like The East African Marine System (TEAMS) and the Eastern Africa Submarine Cable System (EASSY) in addition to the national backbone.
With these connections, expectations are really high that as the country shifts from expensive satellite systems to carry voice and data services, prices of international bandwidth will drop $2,700 to $50 for each Mbps every month.
This means that Internet user prices should also start to decline as ISPs wholesalers pass on price cuts to the final consumers. It should also bring about exponential uptake in ICT and innovation in Rwanda.
But in reality, these deals have not yet translated into actual benefits in terms of price cuts to the final internet consumer.
On the basis of broadband Internet service tariffs, fixed line usage Internet tariffs by MTN were Rwf190,000 throughout 2008 and the trend is expected to remain constant this year, according to Rwanda Utilities Regulatory Agency (RURA). Rwandatel has also maintained its fixed line usage Internet tariffs at Rwf200,000.
On the basis of mobile Internet tariffs, Rwandatel maintained its mobile Internet tariffs at Rwf35, 000 per month while MTN recently switched to a pay go standard, abandoning the fixed monthly charge of Rwf20, 000, a platform most users find more expensive.
It is also believed that with the SEACOM deal, it is said that Rwandatel has managed to cut its broadband costs from $2,000 for every Mbps taped on the satellite to $200 from the fibre-optic cables.
Well, one can argue that we should not expect an immediate impact in terms of user prices, but at least there should be an instant change in terms of reliability and speed.
Therefore, there is need for the regulator to ensure that a drop in broadband costs is passed on to the final consumer.
And if users are to benefit from being connected to the world by low cost solutions, RURA has to ensure operators deliver seamless, accessible and affordable services.