Saturday, 09 June 2007

Internet Services for Zimbabwean Corporate and Home Users

Registered Internet Service Providers

Africa Online, Arachnid Design, Cyberplex Africa, Design@7, Ecoweb, E-World, Earth Internet, Global Internet, Goldnet, Harvey Micro Systems (HMS), MANGO, MWEB Zimbabwe, Reliant Computers, Roach Web Design, Taurai Zimbabwe, Telco Internet, Utande Internet Services, Venekera Works Technologies, Webdev, Web Solutions, Yo!Africa, Zambezi Net, ZARNet, Zimbabwe Internet Mail, Zimbabwe Online (ZOL), Zimbabwe Business Network (Zimbiz), Zimlink, ComOne, and PowerTel.


Do you know how many internet providers there are in Zimbabwe.

Zimbabwe’s Internet Space is a platform for commerce and development, whose use has been increasing rapidly in recent years. A combination of technology innovation and services delivery within the ICT Industry world over, has affected even “small” Zimbabwe in enormous ways, resulting in Quality of Service for the Corporate and Home Internet Consumer. As at September 2006, there are 30 Registered Internet Service Providers (ISPs) in Zimbabwe. The core business of an Internet Service Provider is offering Internet Connection, Website Hosting and Email Services, amongst other things. Within these 30 providers there are 9 who currently offer Web Hosting services only. There are also 4 providers who offer services to private customers only, as some are part of financial institutions and other large conglomerates. 2007, has seen the introduction of another ISP – FBNET, which was born out of a tourism operation. ComOne and PowerTel are also ISPs, born out of parastatals like PTC and ZESA.

What types of services are on offer (broadband, dialup etc)?

To understand the services these 30 ISPs offer, we need to look at the advancements in technology Zimbabwe has seen over the last decade. Internet was commercialized in Zimbabwe in 1996, with MWEB (then known as ICON and SAMARA), Africaonline, ZOL and other companies begun offering simple Corporate and Home Internet Dial-up solutions, via standard telephone lines. The industry so the introduction of UHF connections in later years, where connections were done using radio waves, covering long distances and at faster speeds. As more players jumped into the industry and privatization government departments increased, more technologies were available for use. Of special note is the usage of Fibre Optic Cable, which allows people to connection speeds of more than 2MB per second (73 times faster than the standard 28KB for Home User Dial Up connections). Other technologies discovered included the Mobile Networks, and the VSAT connections, the latter being limited for private use, such as government departments, embassies and the UN.

As an industry, the platforms have advanced from one that offers a mire 28KB to more the 2MB per second in just over 10 years, with more speeds available by the day. The most popular type of connection at the moment is Broadband, which allows even home users, through standard telephone lines, to have speeds reaching 2MB per second. More than 50% of the ISPs offer this service, to both the corporate and the home internet users. All 30 ISPs have a national presence that covers almost every town in the country, through industry synergies that they have formed, creating a level ground, on which “innovation” of service delivery is the only competitive advantage.

The recent discovery of GPRS, allowing Internet Access on Mobile phones, has caused the ISPs to be innovative, with PowerTel addressing the need for Wireless Internet Connection with their PowerCONNECT technology, based Wireless Connectivity. They have Wireless Modems on sale, whose coverage is Harare for now, at enormous speeds of 230KB per second. The beauty of this technology is its power, speed, and convenience. Even Milton Kamwendo can attend to emergency office work whilst making a presentation or conducting a workshop. This is a direct competitor of Mobile Phone Internet Service Providers, as the same technology can take in a SIM Card.

The Website Hosting services are growing to be very popular as many companies, institutions, and individuals are launching websites for Presence, Interaction, and some for Commerce. With the introduction of eTranzact on the financial scene, eCommerce is no longer a nightmare, as many are signing up their websites to allow consumers to buy and sell products and services through their Online Transaction Processing Systems. The glory days, per se, of the Zimbabwean internet space has begun, hence the “bullish” run on the .CO.ZW Internet Market. There are many websites being introduced each day on the .CO.ZW name space, as the Supply of quality website services, and the Demand for Zimbabwean web content are on a steady increase. Business is surely booming in this industry.

How reasonable are their pricing?

Looking at the industry as a whole, their services are well priced, catering for every type of consumer – low income and high income. It is possible for a high density low income earning individual to subscribe for an internet connection, with a good speed of 52KB per second – adequate for good browsing and email. With the cost of computers being reasonable in that almost every home in Zimbabwe can either buy a used machine or import one at low costs, internet services are not expensive at all. On the corporate side, the services vary, whether the corporate wants to be billed per traffic pushed per month, or whether to be billed per hours connected.

Making a comparison with our regional counterparts, Zimbabwean Internet Services are below average, with South Africa and Zambia being fairly high – the former due to market size versus supply, and the latter due to limited supply. Zimbabwe is the only southern African country to have, at one point, seven telecommunications service providers. Though it is easily accessible in South Africa, Internet is rightly priced in Zimbabwe, making the industry a haven for business growth through eCommerce, and other technologies.

Despite regulatory headaches felt here and there, the price per second for connectivity is fairly affordable. The industry regulators have made it possible for ISPs to offer quality of service without compromising profitability. The ground is level, and the price is right.

Are we being robbed as Corporates?

You can never rule out corruption in any industry, though this industry is so transparent that any form of corruption can be spotted without effort. Corporates are not being robbed of service delivery as there is an ISP for every type of consumer. The introduction of ComOne and PowerTel brought balance in the market, making it possible for everyone to have internet access. There was a time when prices were becoming exorbitant between 2002 and 2004, but the introduction of more players caused price slashes to create balance. In 2003, there was a case of an ISP who would buy cheap dial up accounts from TelOne (owner of ComOne) and resell them to consumers. They were caused and stopped the practice. This industry is watertight secure, as fair play is promoted by every ISP. ZISPA (Zimbabwe Internet Service Providers Association) is a institute appointed to govern the industry, addressing all issues that affect the innocent consumer.

How effective are the services provided?

To see the effectiveness of this industry’s services we need to look at two things – Internet Usage Rates, Diaspora Phenomenon and Broadband the Hype. Internet Usage in Zimbabwe has increased as even teenagers flock Internet Cafes to “surf” the “NET”. Internet cafes have increase in Harare, especially, over the past three years, with almost every major road in the CBD having a Café. Phone shops are being turned into Cafes, to maximize on the phone lines available for usage. Cafes such as QuickNEasy, Thuweb, and TN Access have made a significant contribution to the increase of internet usage. As more people frequent cafes, they often become subscribers to ISPs at home or their small offices.

The Diaspora phenomenon has caused Zimbabwean to seek cheaper means of frequent communication with their loved ones overseas. Internets, being the cheapest mode of long distance communication, consumers now have no option but to use the internet, whether in a café, home, or office. SMS does not allow people to send pictures, videos, CVs, Academic Certificates, and other documentation, so people have turned to the internet by the millions. This resulted in more homes and small offices signing up for Internet Connections.

The Broadband Hype, seen from eTV, DSTV and other media sources, has caused the Zimbabwean consumer to ask for the technology as prestige and web content appetites have increased in recent years. PowerTel, YO! Africa, MWEB, and ZOL are some of the leaders in this technology, deploying it through various telecommunications networks. Broadband as a Brand has been consumed at a faster rate than its predecessors on introduction. This will mean that in a few years to come Zimbabwe will be filled with Broadband homes and offices, making the industry extremely profitable and vibrant.

How far are we from the other developed countries?

There is a misunderstanding of Information and Communication Technology amongst the Zimbabwean folk because of the 3G mobile networking, saying that Zimbabwe is far behind. The height of Internet connectivity can never go beyond Broadband and Wireless Connectivity, which are already available. The digital divide is only in the mind, because nothing stops you from signing up to these technologies. What we could say, rather, is when are we going to be a force to recon with? This is a right question, in that it focuses on marketing and product development, rather than politics of the industry. We have the technology, the expertise, the capital, but a lagging in marketing and product development only.

A good example is CABS Online, and ZESA. At one point CABS had a Fibre Optic Network all over Harare which was being used for internal transactions, until someone thought of creating CABS Online, a sound Internet Solution. ZESA was in the same scenario, until they had to shed off their “telecommunications” wing – PowerTel, which is only in the infancy of its potential. The question is, “How many other companies have dormant technology?”

In comparing how far we are from the developed countries let us look at AT&T of USA and British Telecoms of Britain. It took AT&T more than 100 years to commercialize, and British Telecoms similar decades. Yet it took less that 20 years, and in less than 7 years Zimbabwe had 7 vibrant telecommunications companies – TelOne, NetOne, Econet, Telecel, Afri-com, TeleAccess, and PowerTel. We are nowhere near being an undeveloped country in terms of Technology that is why we have companies whose platform is the literal globe – Econet.

No comments: