Rwanda overtakes Kenya, Tanzania in cheap broadband internet race

Rwanda now offers the cheapest broadband internet service in the East African Community, overtaking Kenya and Tanzania, a new report has shown.

New data published by British technology research firm Cable shows that internet users in Paul Kagame’s Rwanda are paying an average of $43.22 (5,603 shillings) per month for a fixed broadband connection this year, down from the $60.96 (7,904 shillings) charged last year, representing a 29.1 percent year-on-year decline.

Tanzania, which topped the list last year, saw its average cost rise to $43.44 (Sh5,632) from $42.31 (Sh5,485) pushing it into second place, while costs in Kenya fell slightly from $49.13 to $47.73 (Sh6,188) pushing the country into third place this year.

Burundi recorded the highest fees in the region at $304.57 (39,490 shillings), down from $383.79 (49,604 shillings) last year, followed by the Democratic Republic of Congo, whose average prices fell to $170.97 (22,097 shillings) from $193.46 (25,004 shillings) last year.

Citizens in Somalia and Uganda this year pay a monthly average of $54.58 (7,054 shillings) and $52.59 (6,797 shillings) compared to $52.50 (6,785 shillings) and $58.69 (7,585 shillings) respectively last year.

The post did not include price figures for war-torn South Sudan.

Globally, Kenya is ranked 125th and 20th in sub-Saharan Africa, ahead of continental powerhouses such as South Africa, Ghana and Cameroon.

According to the data, Sudanese citizens pay the lowest monthly rates in the world at $2.40 (310 shillings), with all sub-Saharan African countries ranking among the top 230 countries for cheapest prices.

In Kenya, the fixed internet market has remained firmly in the grip of Safaricom which enjoys a 37.4 percent market share according to the latest statistics published by the Communications Authority of Kenya (CA).

Telecom giants Jamii Telecommunications Limited (JTL), Wananchi Group-owned Zuku and Poa Internet Kenya Limited are next with 22.6, 18.8 and 13 percent stakes respectively.

The market has recently shown hope for cheaper prices with a new wave of intense competition driven mainly by a strong influx of commercial satellite internet providers with low-cost offerings.

Analysts have expressed their opinion that traditional online retailers will either have to stick to pricing, or risk going out of business due to market forces.

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