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Zambia: govt, service providers reach stalemate over pricing

By , ITWeb’s Zambian correspondent.
Zambia , 17 Aug 2015

Zambia: govt, service providers reach stalemate over pricing

The Zambian government has admitted that it has failed to force mobile phone operators and internet service providers (ISPs) to reduce the high cost of communication and internet service provision.

The minister of Communications and Transport Yamfwa Mukanga said the Zambian government is now convinced that only increased competition among service providers in the sector will lead to improved service delivery and reduction in the cost of services and telecommunications products.

He said ISPs and mobile phone operators should come up with products and services that will make the lives of Zambians better by making communication and internet easily accessible and affordable.

"We have realised that it is only with the private sector involvement and full participation that Zambia can have fast, reliable communication services," Mukanga told ITWeb Africa.

Zambia has less than 3 million internet subscribers compare to 10.5 million mobile phone subscribers.

The Zambian government has over the past few years been pushing for more accessible and cheaper internet and mobile phone services.

Mukanga went as far as saying authorities would facilitate the entry of the fourth mobile phone operator into market should others fail to comply.

But operators and ISPs have not been able to reduce the costs, claiming they are operating in a challenging economic environment and this has also impacted on their ability to expand internet usage.

Boyd Banda, sales and marketing director at Hai Telecommunication, a local ISP that last week rebranded from Real Time Zambia said ISPs were finding it difficult to expand internet services to the majority of Zambians because only a few people can afford to pay for it.

"Hai Telecommunication will soon introduce services that will cater for households and corporate subscribers to ensure easy access to internet services," Banda said.

Locals are paying as much as ZMK0.28 per second for mobile calls, while data bundles cost as much as ZMK4 for 10 Mbs.

Mobile operator MTN Zambia has also promised to help address the country's low internet penetration through the introduction of affordable data services.

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