5. Conclusions and recommendations

Joint   ventures   between

5.4

Ensuring low Internet

cybercafes/telecentres, the

access tariffs

fixed and mobile line operators,

and other investors such as e 

The low local call tariff in Ethiopia

commerce entrepreneurs to

could do much to help promote the

offer full service ICT access,

use of the Internet but its benefits

content, and business venture

have been obscured by the high

options to rural communities, as

subscription charges for EthioNet,

w e l l   a s   t o   ` t e l e w o r k '   f o r

which are amongst the highest in

developed countries;

Africa. These are expected to be

revised downwards, but this is unlikely

Specialized start up companies,

to be a sufficiently large reduction to

s u c h   a s   p u b l i c   p a y p h o n e

be affordable to a significant number

p r o v i d e r s ,   I S P s ,   e t c ,

of Ethiopians.

e s t a b l i s h i n g   n e w   p o i n t s   o f

access, with ETA s support (and

There are a number of other strategies

in some cases subsidy);

that could be considered to lower

Internet access prices. One is to create

Opportunities to link these with

a business model in which ISPs and

rural community radio licences,

the telecom operator share the local

s u c h   a s   t h r o u g h   U N E S C O s

telephone usage charge and eliminate

C o m m u n i t y   M u l t i p u r p o s e

the ISP charge. This also simplifies

Centre (CMC) programme.

billing. A related strategy would be to

investigate a very low flat rate or even

ETA s liberalization policy could be

a free option for Internet access as is

structured to encourage these kinds

the practice in Peru and Chile. Clearly,

of activities, tapping the potential of

if the ISP sector is liberalized, then

the under served markets of Ethiopia

ISP licence fees will need to be low in

to create the incentives for those

order to encourage small startup

with ingenuity and vision to bring

companies to enter the market and

both economic development and

to avoid the high fees simply being

greater social equality to Ethiopians.

passed on to the consumer in the form

of higher usage charges.

Aside from liberalizing the sector this

will primarily require government

Prices for leased line Internet access

investment in education and training,

also need review. Use of the Internet

along with taking measures to cut

and e mail has increased the demand

input costs and consumer prices by

by many businesses customers for

supporting the development of local

permanent circuits. The availability,

capital markets and other forms of

quality, and especially price of these

finance, reducing import duties and

data services, has a direct impact on

speeding business registration,

an increasing number of regular

l i c e n s i n g   a n d   i m p o r t   c l e a r a n c e

customers, as opposed to the few

procedures.

large corporations that traditionally

had large budgets for the use of

While the kinds of activity mentioned

private line and data services.

above are necessary, policies also

need to be developed that facilitate

In addition, if the ISP sector is to be

the increased use of the Internet in

opened up, they must be able

various sectors, such as education,

purchase high capacity links between

h e a l t h ,   e   c o m m e r c e ,   e t c .   ( s e e

their PoPs and in effect resell leased

below).

lines provided by the telecom operator

to their customers. The price that is

A   f r a m e w o r k   f o r   t h e   p e r i o d i c

paid for these data circuits will directly

measurement and evaluation of

affect the price that end users must

progress could also be developed in

pay for Internet services. This fact,

association with these initiatives.

and the general importance of data

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