Page 112 - SAMENA Trends - October 2019

REGULATORY & POLICY UPDATES SAMENA TRENDS

Mauritius Denies Rumors of UTL Interest

The government of Mauritius has played Teleology fell through in January due to its Privatization and Investments, Evelyn
down rumors that local state-backed failure to hand over the deposit payment. Anite, travelled to Mauritius in August
telco Mauritius Telecom (MT) is still At the time of the Teleology deal, MT had to discuss a possible deal between MT
interested in acquiring a majority stake in been named as another potential buyer and UTL. According to TeleGeography’s
Uganda Telecom Ltd (UTL). The Ugandan for UTL. According to a report from the GlobalComms Database, MT is 33.5%
government is looking to sell off around Kampala Post, however, there are now no state-owned, while Orange of France has
two-thirds of UTL in an attempt to revitalize plans for MT to take a stake in its Ugandan a 40% interest.
the struggling operator, but a deal agreed counterpart. Officials in Mauritius have
a year ago with Nigeria-based investor also denied that Uganda’s Minister for

Low-Income Countries See Drastic Fall in Mobile Data Costs: Study

The cost of mobile data for consumers
in low and middle-income countries has
fallen across all regions, new research
from the Alliance for Affordable Internet
(A4A1), an initiative of the Web Foundation
finds. Low-income countries saw the
most improvement, a historic reversal with
progress of poorer countries previously
lagging behind middle-income countries.
The average cost for 1GB data as a
percentage of average monthly income
declined by 11 percent, from 5.8 percent
of average monthly income in 2018 to 4.7
percent today. Still, among those countries
covered in this survey, over 1 billion people
live in a country where an entry level plan
of 1GB of mobile data is not affordable.
Across Africa, where internet data remains
unaffordable for millions, particularly
women, there was a particularly steep
decline, with the cost of 1GB data
dropping from 9 percent to 7.1 percent income. In countries such as Zimbabwe, Because high costs keep people offline,
of average monthly income. This fall in a rise in incomes made broadband data the countries and regions with the least
cost brings internet access, a key driver more affordable, dropping relative cost affordable data are also those with the
of development and equal opportunity from 19.8 percent to 10.1 percent of fewest people connected to the internet.
within reach of millions more people. The monthly income. It is important that these In Africa, where data is the least affordable
report however says the cost of broadband gains are not rolled back and indeed shape at 7.1 percent of average monthly income,
is prohibitively high: if the average US the trend towards increased affordable only 24 percent of the population is online
earner paid 7.1 percent of their income for access. According to the study, declining compared with 51 percent globally. The
access, 1GB data would cost USD 373 per costs meant seven new countries reached organization calls on governments to take
month. The report says falling broadband the international threshold of affordability urgent action to make internet access
prices drove affordability in certain African for the first time in 2019, making internet affordable for more people. By improving
countries. In Sierra Leone, the relative cost affordable for most people, including those competition in telecommunications
of 1GB data tumbled from 25.9 percent at below average income levels in Algeria, markets and investing in public access
to 9.9 percent after the introduction of Bangladesh, Cabo Verde, Colombia, solutions in places like libraries,
a number of more affordable data plans Ecuador, Namibia, and Paraguay. The schools, and community centers, it says,
by the largest operator. In Burkina Faso, United Nations ‘1 for 2’ standard defines governments can lower the cost to connect
reduced prices halved the cost of 1GB from affordability as 1GB data for no more than and in turn bring more people online.
14.8 percent to 7.8 percent of monthly 2 percent of average monthly income.

112 OCTOBER 2019