THE AFRICAN
INTERNET & TELECOM SUMMIT
Banjul, The Gambia
5-9 June 2000

OVERVIEW OF THE INTERNET IN BOTSWANA

Prepared by: Salome Bopa
Manager (Licensing)
Botswana Telecommunications Authority
sbopa@hotmail.com

 

1. Economy Overview

  • Population: 1.65 (est 1999)
  • Population growth rate: 1.12% (1998 est.).
  • GDP growth: 6.9% in 1998 mainly from diamond mining, beef and tourism.
  • GDP per Capita: US$3,300 (1998)
  • Country foreign reserve: about US$5.7 billion.
  • inflation rate: 7.2 percent in 1999
  • The main natural resource: Diamonds. Botswana is the world's largest exporter of rough diamonds in terms of quantity.
  • The Corporate tax rate: 25%, and a 15% rate for manufacturers


2. Internet and Telecom Market Overview

2.1 Regulatory Regime

Botswana adopted the telecommunications policy in 1995 and subsequently, the Botswana Telecommunications Act was enacted in 1996. This gave birth to Botswana Telecommunications Authority (BTA) which is an independent regulatory body, established to 'supervise and promote the provision of efficient telecommunication services in Botswana'.


2.2 Fixed Network Operator

Botswana Telecommunications Corporation (BTC) is a fully state owned corporation operating over 120,000 lines (March 2000) with a penetration rate of 7%, one of the highest in Africa. BTC is sole provider of fixed network services. Its network is 100% digital with extensive microwave and fibre optic transmission links.

Tariffs Pula Equivalent in US$

Tariffs

Pula

Equivalent in US$

Connection

225

45.00

Monthly charge

24.33

4.87

Local call/3 minutes

0.23

0.05

Long distance (150km)/minute

0.92

0.18

 


2.3 Mobile Operators

BTA licensed two mobile operators in Botswana - Mascom Wireless and Vista-SimplyCell in 1998. BTC provides infrastructural support for the mobile operators, it lost during tender for cellular mobile licence.

Operator statistics (as of March 2000)

 

Vista Cellular

Mascom Wireless

Launch Date

February 1998

February 1998

Technology used

GSM

GSM

No of subscribers

7500 ( June 1999)
 35,000 ( March 2000)

8,000( June 1999)
85,000 (March 2000)


2.4 Internet Usage

The provision of Internet services in Botswana started in 1995/96. The provision of Internet is now liberalised and ISPs are required to have a licence in accordance with the Telecommunications Act of 1996. Currently there are six licensed Internet Services Providers. These are Mega Internet, Intertswana, 4site, USKO, Logical Botswana and Botsnet.

A preliminary estimate indicates that there are about 25,000 to 30,000 users, compared to 12,000 in 1999.

The international bandwidth capacity used by the ISPs ranges between 64Kbps and 256Kbps.

Regulatory requirements

All ISPs are required to have ISP licence to provide Internet Services. The first licence was issued on 23rd November 1999.

Current ISP licences are valid for 2 years.

At present the licensee pays an initial fee of P10, 000 (US$2, 000). The licensee also pays an annual fee of P3, 000.00 (US$600.00).

Currently to offer voice on IP network is prohibited as stated in ISPs licences.

ISPs are allowed to use any technology available.

There is no requirement with respect to Universal Access/Services in the ISP licences.

TARIFFS

There is no regulatory control on Internet tariffs and the following are current Internet Charges in Botswana.

Installation Charges - average P100. 00 ~ US$ 20.00
Monthly Subscription fee - average P100. 00 ~ US$ 20.00
Internet access rate - 23 cents ~ 4 cents per six minutes