Electricity is expensive - iWay CEO

Fibre-optic cable company workers get ready to work. Fibre services are among the preferred mode of Internet connectivity.

What you need to know:

Internet service provider iWayAfrica inked a deal with Abu-Dhabi based satellite broadband provider, Yahsat, to provide locals with access to satellite broadband connectivity countrywide. Prosper magazine’s Jonathan Adengo spoke to iWAY CEO Godfrey Sserwamukoko on how Ugandans can benefit from this Internet service.

You recently signed a partnership with Yahsat for ground satellite broadband support services, what is special about this partnership?
The Yahsat Partnership adds onto the already big satellite footprint owned and offered by iWayAfrica, a blend of Ka-Band services off the latest high throughput satellite technologies. This will enhance iWayAfrica’s pioneer status in extending low cost broadband services to the corporate sector countrywide. We have been offering Internet and other data communication services countrywide since 1994.

4G LTE speeds are a unique selling proposition for some mobile telecom companies. What is the distinct advantage and difference in satellite (VSAT) versus mobile internet and fiber optic?
These services are complementary other than competitive or substitutes. The 4G LTE is optimised for the individual consumer market with variable service offerings on Shared Bandwidth especially on the finite access path.
Fibre services are the most viable and most preferred mode of connectivity for the mostly metropolitan high capacity corporate customers in excess of 5Mbps.

Satellite technologies have evolved to offer cheap broad band width from as low as $50 (about Shs168,750) for 2.5Mbps to $800 (Shs2.7 million) for 8Mbps of broadband Internet capacity. The service offer here is available countrywide in any spot and carries with it the benefits and attributes of using satellite services.
The wide reach, reliability and quick deployment of Satellite internet is a good solution for bank ATM networks, Point of Sales Terminal Networks, Wide Area Networks, deployments for oil drilling, tourism, hospitality networks, disaster recovery support efforts, rapid response deployments, satellite news gathering for journalists in hard to reach areas and oil drilling rigs.

Google recently launched free Wi-Fi hot spots in Kampala. How will this help increase on the internet uptake?
Mobile Internet access enabling basic communication especially for social media and basic browsing will change the lives of our people.
Offering such services with Google brings Uganda in line with developed cities worldwide in embracing and shrinking the digital divide hence accelerating our own development.

How will you solve the problem of slow internet speeds?
The several broadband internet service products on offer at iWayAfrica provide differentiated services designed to address the challenges for varied customer needs.
Correct assessment of customer needs will match a client’s needs to the correct service requirement.

How do you compete with mobile telecom companies?
Telling the best offer is quite difficult at face value and can only be made basing on which provider offers more for free.

What are the challenges of this sector?
Downward pressure on prices in a market with 36 public Internet service providers not to mention free-lance masqueraders and speculators is one of the major challenges we face.
The larger scattered populace in low purchasing power areas is in essence disadvantaged with few providers offering services due to low revenue per unit figures in the larger market.
Expensive energy; the electricity footprint is small. In places where it is available, it is erratic and expensive running 24-hour base-stations.

There is a shift in consumer behaviour from buying airtime to data. Does this mean Internet service providers are making more money?
The biggest amount of growth has been seen in the consumer segment with approximately 110,000 new users every month across the country especially in the Mobile Internet Segment.
These customer gains are not marked in the fixed access segment where Internet Service providers fall with approximate growth of 1100 fixed access users every month shared across over 50 Internet service providers (ISPs) and Mobile Telecom providers.
Mobile telecoms that have a share of both mobile and fixed markets have recorded growth in data revenues in comparison to previous periods.

How ready are you for the shift from voice to data calls?
iWayAfrica revenues for its VoIP Platform will keep increasing especially with the launch of the managed VoIP Platform.
However, this has been hampered by difficult interconnection requirements and resistance especially from the incumbent voice telecommunication players.