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Rwanda overtakes Kenya and Tanzania in the race for cheap broadband internet

Rwanda now offers the cheapest broadband internet in the East African Community, overtaking Kenya and Tanzania, a new report shows.

New data from British technology research firm Cable shows that internet users in the country led by Paul Kagame are paying an average of $43.22 (Shillings 5,603) per month for a fixed broadband connection this year, down from $60.96 (Shillings 7,904) last year, a 29.1 percent drop from the previous year.

In Tanzania, which topped the list last year, the average cost increased from US$42.31 (Sh5,485) to US$43.44 (Sh5,632), putting the country in second place. In Kenya, however, the cost decreased slightly from US$49.13 to US$47.73 (Sh6,188), putting the country in third place this year.

Burundi has the highest fees in the region, at US$304.57 (Shillings 39,490), a decrease from the previous year (US$383.79 (Shillings 49,604). This is followed by the Democratic Republic of Congo (DRC), whose average prices have fallen from US$193.46 (Shillings 25,004) last year to US$170.97 (Shillings 22,097).

Citizens of Somalia and Uganda are paying an average of $54.58 (S$7,054) and $52.59 (S$6,797) per month respectively this year, compared to $52.50 (S$6,785) and $58.69 (S$7,585) per month last year.

The publication did not include price information for war-torn South Sudan.

Kenya ranks 125th worldwide and 20th in sub-Saharan Africa, beating continental heavyweights such as South Africa, Ghana and Cameroon.

According to the data, citizens of Sudan pay the lowest monthly rates in the world at $2.40 (310 shillings), with all other sub-Saharan African countries ranking among the 230 cheapest.

In Kenya, the fixed-line internet market remains firmly under the control of Safaricom, which has a market share of 37.4 percent, according to the latest statistics released by the Communications Authority of Kenya (CA).

Following behind the giant telecommunications company are Jamii Telecommunications Limited (JTL), Zuku, which belongs to the Wananchi Group, and Poa Internet Kenya Limited with shares of 22.6 percent, 18.8 percent and 13 percent respectively.

The market has recently raised hopes of cheaper prices amid a new wave of increased competition, driven primarily by an aggressive influx of commercial satellite Internet providers offering low-cost offerings.

Analysts believe that traditional Internet providers must either follow the rules when it comes to pricing or risk being forced out of business by market forces.

By Olivia

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