3. Internet strategy and policy

Because ETC provides a local call tariff

accumulated by the time the new

from anywhere in the country to dial

service was operational. This took

its Internet service, these points of

place in July 2001 and since then the

presence (PoPs) are largely a cost 

number of accounts has grown to just

saving exercise to limit subsidization

over 6'000. The chart below (Figure 7)

of long distance calls. Also, when

shows the number of accounts added

leased line Internet access is required

and cancelled during the period July

outside Addis Abeba, the PoPs will be

2001 to February 2002. As can be

able to provide them much more

seen, the growth in number of

efficiently from the 8 major cities.

subscribers has tailed off considerably

International link congestion is now

in last few months, indicating that the

quite severe during the day (see

backlog was cleared by about October

below), with the incoming bandwidth

2001 and the potential dial up user 

fully saturated from about 07:00 to

base is beginning to reach its peak.

17:00 hours during which time about

EthioNet estimates that there are

20 per cent of the incoming packets

10 users per dial up account, giving

are dropped. As a result, ETC is in the

the total number of users at about

process of upgrading the link with an

60'000. Most other ISPs estimate

additional 2Mbps outgoing and 8Mbps

between 3 and 7 users per dial up

incoming bandwidth to be provided by

account, so this estimate is probably

New Skies Satellite (NSS) for

optimistic.

USD 25'000 per month using existing

transponder leases. The existing

Despite the availability of the

2Mbps (symmetric) international

nationwide local call tariff for dial up

bandwidth is provided by France

Internet users, the distribution of

Telecom (FCR), for which it pays about

Internet users is still strongly skewed

USD 24'000 per month.

to the capital, with subscribers outside

of Addis Abeba accounting for only

Due to delays in commissioning the

about 6 per cent of the total user base.

upgrade to the service, a considerable

This is partly attributable to the low

waiting list of potential subscribers

level of computerization outside the

Figure 7: Internet accounts added or canceled (by year)

Source: Ethio Internet.

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