Can anyone explain to me why a satellite broadband service costs so much in Africa?

• Geostationary satellites hover over equatorial Africa, even when they also serve Europe and the Middle East.
• Often the Ground Station where it meets the Internet is in Europe whether the customer is in Africa, Europe, or the Middle East 
• The customers terminal and satellite dish is fundamentally the same for everyone

So why is Avanti in the UK able to offer a 512kbps service for £25 per month, when in Africa it can be more than £700 per month?

The key differences are:

• Choice     In Africa there is often no other option, while Europeans and Americans have lots of options - a captive market
  
• Market    Demand for space over Africa is high because the markets in Europe and the US are depressed because of the choice
  

There is no difference in cost - only in the price the supply chain can get away with.

So while the African incumbents focus on limited deployments of terrestrial services, satellite providers are compounding the problem by failing to stimulate demand and offering services at price points which only Western companies and NGO's will just about stomach because connectivity is essential to them.

If ICT is going to help developing nations leap frog rather than evolve their economies, , as many Western Governments and the UN hope,  then the focus must be on making sure ordinary businesses and schools have connectivity they can afford.

Time for a Fair Trade ISP!

Please contact us if you can help break this model.