Government Demands Lower Internet Service Prices in Madagascar
The government in Madagascar is putting pressure on telecom operators in the country to lower the prices of internet services. Despite the authorities threatening to force them to do so, the operators are refusing to comply. Official statistics show that the country has 4.9 million internet subscribers with a penetration rate of 17%.
The Malagasy government is considering taking “drastic” measures against telecom operators if they do not reduce the prices of their internet services, revealed Tahina Razafindramalo, the Minister of Digital Development, Posts, and Telecommunications, during the World Telecommunication and Information Society Day. The government’s proposed measures could include setting a price ceiling or imposing penalties, which would be enforced by the sector regulator, the Regulatory Authority for Communication Technologies (ARTEC).
This warning is part of an ongoing dispute between the government and telecom operators over internet service prices. In early May, the government revoked a decision that had come into effect a month earlier, setting the internet floor price at $0.95. Antananarivo accuses operators of artificially keeping prices high, which does not align with the commitments made during negotiations. The Malagasy government hopes that reducing the costs of internet services will make access easier for the population. According to the 2022 activity report from the sector regulator (ARTEC), Madagascar had 4.9 million mobile internet subscribers and only 32,000 fixed internet subscribers, resulting in a penetration rate of 17%.
Challenges Faced by Telecom Operators in Madagascar
Telecom operators in Madagascar are facing challenges as the government demands lower internet service prices. The operators are resisting the pressure to reduce prices, leading to a standoff with the authorities. The government’s threat of “drastic” measures, such as implementing a price ceiling or imposing penalties, adds to the uncertainty in the telecom sector. This dispute highlights the importance of affordable internet services in Madagascar and the need for cooperation between the government and telecom operators to address pricing issues.
Impact on Internet Accessibility in Madagascar
The ongoing conflict over internet service prices in Madagascar has implications for internet accessibility in the country. With a penetration rate of only 17%, the high cost of internet services hinders access for many people. The government’s push for lower prices underscores the importance of affordable internet services in promoting digital inclusion and economic development. As the regulatory authority contemplates enforcement measures, the future of internet accessibility in Madagascar hangs in the balance, with potential consequences for both telecom operators and the general population.
In conclusion, the government’s efforts to lower internet service prices in Madagascar reflect a broader push for digital affordability and accessibility. By addressing pricing issues and promoting cooperation between authorities and operators, Madagascar can work towards improving internet penetration rates and fostering digital development in the country.
