Benin Telecommunications Sector Performance Review 2007

Benin
Despite price matching, the benefits of the competitiveness of the mobile
sector are evident in a comparative price analysis across the continent.
Although nominally Benin is the middle range, the PPP adjusted price
better reflects real costs and puts Benin in the 25% percentile of countries
with lowest mobile charges.
COSTS OF INTERNET SERVICES
Open competition has led to a drop in rates for the use of Internet services
in Cybercafes. From CFAF1 000 in the beginning, the current rate
for an hour of Internet access stands at CFAF300 on average. The rates
are even lower in some Cybercafes in Cotonou. For Cybercafe managers,
these rates pose a problem of return on investments.
Internet subscription rates offered by Internet access providers besides
Bénin Télécoms SA are as follows:
TABLE 7: IAP ACCESS RATES
Type of link Monthly access rates (in CFAF)
STN 8 500
Wireless 38 000
ADSL 45 000
Source: Based on information from IAPs
As part of the drive to promote ICT in Benin, the incumbent operator
offers rates slightly lower than those of other access providers. Bénin
Télécoms SA offers the following rates:
a. STN + e-mail (access to messaging + 1 Internet.address)
Creation charges: : CFAF23 675
Monthly subscription charges: : CFAF9 505
b. STN only (access to surfing only)
Creation charges: : CFAF17 760
Monthly subscription charges: : CFAF7 010
c. Surfing
CFAF20 for three minutes irrespective of connection time.
INTERCONNECTION
The opening of the GSM communications market to competition resulted
in a multiplication of networks and services. To allow all users of these
various networks to fully benefit from the diversity and to communicate
in a seamless and transparent way, it is necessary to ensure the interconnection
of the different networks. By virtue of its role, interconnection
is the cornerstone in establishing a competitive market for communications
services. In fact, interconnection enables newcomers to
provide telecommunications services by using the incumbent operator’s
network and infrastructure either in whole or in part. This avoids having
to incur heavy investments at start-up and makes the incumbent
operator strive to be more competitive by diversifying its services.
On installation, the four GSM cell phone operators in Benin signed an
agreement with Bénin Télécoms SA that defines the requirements for the
interconnection of the networks. This agreement builds on the definition
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