(Ecofin Agency) – The wholesale ISP Olleh Rwanda Networks (ORN), proceeded last week to a 30% reduction of tariffs for 4G Internet access. The objective is to facilitate the majority of Rwandans’ access to very high speed.
This reduction in price on the 4G Internet comes after that of 11 February 2015. Then, Olleh Networks Rwanda had made a reduction of Internet access tariffs by 70%, all confused technology. According to Han Sung-Yoon (photo), the Director General of Rwanda Olleh Networks, the new price reduction on 4G stems from incessant pleas for public access to affordable high speed.
If the Rwandan consumers welcome this new lower prices, this is not the case for all Internet service providers (ISP). Indeed, of the 17 ISPs in the country, only 7 have conducted a review of their tariffs, reports the theeastafrican.co.ke site. The 10 ISPs reticent about this new lower costs estimate that it will reduce their profits while increasing their charges. Claudine Mukabugura, director of sales at Piramie Inc., concurs and says, “We incur a high cost of operation: we are already marketing, pay wages, taxes, rent, sales …all these costs will be reduced from the retail price.”
Reacting to complaints from ISPs, Hang- Sung Yoon said that Olleh Rwanda Networks is also affected by the increase in expenses. “We are investing in equipment, manpower, maintenance and depreciation. Yes, retailers incur higher costs but the profit margin is 60% compared to our prices, which is very high,” said the general manager of the wholesale ISP.
Olleh Rwanda Networks promised to the Rwandan Government to bring high speed broadband to 95% of the population by the end of 2017. In 2015, the company revealed that it has been able to deploy high-speed broadband to 32% the population, or 27 districts. This year it plans to increase the deployment of 4G LTE to 62% of the population.