Corner: Internet rates rise several times in Zimbabwe, but digital divide widens | Reuters

Zimbabwe’s annual real inflation rate is unofficially estimated at around 1,000%. Internet prices have also skyrocketed, making it harder to make a living using basic services, studying, doing business online, or working remotely. The photo was taken in January 2019, of a man with a cell phone. Photographed in Harare (2024 Reuters/Philimon Bulawayo)

MUTARE, Zimbabwe (Thomson Reuters Foundation) – Joyce Kapbumufti runs a small catering business. But a sudden increase in internet prices in Zimbabwe prevented them from connecting to the internet for a week, and orders for wedding cakes, business lunches and frozen cupcakes were also halted.

Kapbumufti said from his home in Mutare, a city in eastern Zimbabwe. “We used to advertise and promote online and get at least five customers a week. But without the Internet we would be lucky to get two a week.”

As a result, they now spend much of their meager income on data fees. Naturally, it became difficult to cover other basic expenses, such as rent and food for his two children.

Zimbabwe’s annual real inflation rate is unofficially estimated at around 1,000%. Internet prices have also skyrocketed, making it harder to make a living using basic services, studying or, like Kapbumufti, doing business online or working remotely.

Econet Wireless Zimbabwe, a major national mobile communications company, increased data communication tariffs by 100% in October 2023. Currently, the average price per gigabyte (GB) is $3.54 (about 520 yen) .

State-run Net One, the country’s second largest mobile operator, is also increasing data rates by the same percentage.

“The increase in Internet data costs came as a surprise to me. Before I knew it, I was disconnected,” Kapbumufti said as he scrolled through his smartphone screen. Most of his customers found his home service via Facebook, TikTok and WhatsApp.

Digital human rights and anti-poverty activist groups are calling on the government and telecoms regulator Potraz to take steps to lower prices and address the growing digital divide following last October’s price hike.

“Using the Internet has become a luxury reserved for an elite few who can afford it,” said Nompilo Simanje, a lawyer specializing in digital human rights issues. The lawyer previously worked at the Zimbabwe branch of the non-governmental organization Media Institute of Southern Africa (MISA).

Cimanje pointed out that data communication costs have increased significantly over the past three years, saying: “This is the digital age. Every ordinary person needs the Internet to live their daily lives.”

Data communication costs in Zimbabwe are higher than in neighboring countries. Cable. co. According to the “2023 World Mobile Data Communication Prices” report published by the United Kingdom, the average price per GB is $1.81 in South Africa, $0.38 in Malawi, $0.78 in Mozambique and $1.26 in Swaziland.

While exchange rates make it difficult to see the true picture, Potraz disputes the report’s conclusions, arguing that data costs in Zimbabwe, averaging $3.21 per GB, are lower than the southern African average.

Econet doubled its tariffs in October last year, but had also increased prices just six months earlier, in April last year. Zimbabwe Online Content Creators president Toneo Lutosito said last April’s price hike had already put internet use out of reach for many Zimbabweans.

“The price increase has made it difficult for both content creators and consumers to connect to the Internet, as prices have become prohibitive. This will kill the industry,” Rutosito said. His organization is said to be in talks with Potraz to reduce fares.

A 2023 report by Potraz states that the internet penetration rate in Zimbabwe is 70.1%, which is low compared to other countries in the region. In South Africa it is 72.3%.

The tax hike is putting further pressure on the household budgets of Zimbabweans, whose average monthly salary for civil servants is around $200, forcing them to cut other expenses.

Kuda Chisbo, who runs an online fresh vegetable retail business, said orders from customers in the capital Harare and outlying towns had fallen, due to rising internet costs.

Tafadzwa Chaitezvi, a 19-year-old high school student, also lost access to the Internet on her mobile device. Her father, who works in Mutare, gave her her password and she stands outside her father’s workplace, connects to the WiFi and downloads the assigned books to read offline.

“Until now, my father paid for my data communication, but the costs have become so high that he can no longer afford it. I use this WiFi on weekends when I don’t have classes,” says Chaitezvi. In the future he would like to study electrical engineering.

Shortly after the increase in data speeds, the hashtag “#DataMustFallZW” (lowest data speed in Zimbabwe) began trending on social media sites, following a call from the MISA Zimbabwe chapter.

The campaign originally began in 2022, when Net One increased data speeds by more than 500%. The protests eventually forced NetOne to reverse the price increase.

“This has given stakeholders the feeling that this is wrong,” Thabani Moyo, director of MISA’s Zimbabwe branch, told the Thomson Reuters Foundation, adding that it has a responsibility to set prices that people can afford.

The office of Zimbabwe’s information and communications technology minister did not respond to multiple requests for comment.

When contacted for comment, Econet was referred to a statement from Potraz. Recent price increases reflect higher costs denominated in foreign currencies, she said.

Potras general manager Gift Machenguete said the price increase was “implemented to balance the accessibility of services and the viability of operators.”

With no immediate solution in sight, Chaitezvi says he will likely struggle to complete his homework for a while.

“Even though I say I’ll borrow the WiFi here to do some research, I’m worried about how long I’ll be able to do that. It’s just a stopgap.”

(Translation: Airkreren)

Our Code of Conduct: Thomson Reuters “Principles of Trust”, opens in a new tab

2024-01-20 07:37:16
#Corner #Internet #rates #rise #times #Zimbabwe #digital #divide #widens #Reuters