Government asks telecom firms to reduce internet costs
Different service providers have different rates for business internet solutions. File photo
What you need to know:
- Mr Wim Vanhelleputte, the chief executive officer of MTN Uganda, said the cost of delivering mobile data to customers is higher than the costs users pay to access the internet.
- He said as operators, they bear the cost of operations, which if shifted to the users, would discourage them from using internet services.
Government has asked telecommunication service providers to reduce internet costs to protect their clients from paying exorbitant fees to run their businesses.
While opening the annual ICT sector review in Kampala yesterday, Mr Frank Tumwebaze, the Minister of ICT and National Guidance, said while the telecom operators boast about the reduced mobile internet costs, Ugandans using the services for business are paying heavily.
“Institutions of business don’t do business on mobile data. Mobile data is for personal communication, but offices, hotels and other institutions have dedicated internet and yet are the most expensive ones,” Mr Tumwebaze said.
“People pay for 3mbps, a month, so we want to bring that down. Why should I pay a million for utility? If water or electricity was to be that expensive, how many people would afford [the services]? These services have become basic requirements of life and basic requirements of production,” he added.
Different service providers have different rates for business internet solutions.
Business internet costs
While we were unable to obtain rates for other telecom operators in the country, at MTN Uganda, the lowest cost for Lite package goes for Shs290,000 with an installation fee of Shs250,000 at speeds of up to 512Kbps, while the Standard package costs Shs422,500 monthly with an installation charge of Shs250,000 at the speed of up to 1Mbps.
This facility can be used for e-mail, web surfing, uploads, downloads, music and video streaming, internet calls and online banking for up to two to four users.
The last option is the Premium package, with speed up to 2Mbps at Shs602,500 per month and an installation fee of Shs250, 000.
Mr Tumwebaze urged the service providers to lower the costs.
“Internet is one of the cost push factors and this one we are very serious about it and we want to see it come down immediately,” he said.
The minister also tasked the telecom operators to share facilities to cut operation costs.
Mr VG Somasekhar, the managing director of Airtel Uganda, said high taxes imposed on data determine the internet costs.
“We request government to review the taxes. We end up paying up to 30 per cent and with that, we cannot lower the costs yet we are already offering very cheap internet costs compared to the taxes charged,” he said.
Mr Wim Vanhelleputte, the chief executive officer of MTN Uganda, said the cost of delivering mobile data to customers is higher than the costs users pay to access the internet.
He said as operators, they bear the cost of operations, which if shifted to the users, would discourage them from using internet services.
