Diary of an Internet Service Provider in Nigeria [DisPING]

A Reluctant Price Increase

We had kept faith with SKANNET Subscribers for the past 12 years that our charges for Internet Access will keep reducing as more subscribers join our Network. Two significant events in the last few months made us depart from this.... The upward rise in the price of Satellite Connectivity due to the scarcity of C-Band Satellite Spectrum and the reducing spasms of NEPA or PHCN as it lays prostrate dying on its sick bed.

First we posted a notice on our website, then I sent out an Email out to all subscribers, intimating them of this planned price increase. Best to just reproduce the email below:

Dear Valued subscribers,
The power situation in the country has also taken its toll on our operations as we now practically generate power for 24 hours a day. Electricity now accounts for 12% of our costs, up from less than 1%. We have kept faith, hoping the situation will improve, but there seems to be no end in sight. This week, our VSAT service providers notified us of a  general increase in prices for all class of VSAT service. This they will implement from 1st April 2008. In the light of the above, we are forced to review and increase our Internet service charges by 20% across the board, with effect from 1st May 2008. To this end, our minimum Internet Access charge will be increased from N2,500 to N3,000. The complete revised charges is available from our website http://www.skannet.com We appreciate your continued patronage and assure you that we will continue to provide you with functional and affordable total communication services. We seek you understanding,  cooperation and continued patronage. Our help desk is available to address any concerns you may have. Please direct all such enquiries to support@skannet.com

Yours Sincerely,

Sunday A. Folayan.
Managing Director

I am sure ... some will ask, is this charge for 24/7 Access? “Yes” is the answer. The next question will definitely be .... “Is this available in Lagos now? “No” is the answer! Only  in Abeokuta, Ado-Ekiti, Enugu, Ibadan and Ilorin. I also envisage the question ...When will  it be available in Lagos? “Soon” is the answer. Enough Q and A for now. There were very few responses, but none disagreed with the rationale. Most just sought clarifications regarding their own subscription profile. While we may have temporarily recouped our own costs, the Customer is at the receiving end of this action. This is because they may end up paying for more, while using less of it since without Utility, they cannot utilize their subscription, and if they choose to, they must also buy Diesel which keeps heading towards the roof. It is a shame that a country that lives in a Luxury Liner on a wide Ocean continues to thirst.

Congratulations to the Nigeria ICT Forum
The Nigeria ICT Forum of Partnership Institutions (http://www.forum.org.ng) convened by my very good friend – Dr. Aminu Ibrahim, is a little known organization in Nigeria, but they are at the threshold of a  revolution. Aminu (I call him by first name, but he has genuine white hair, in comparison to my own stress induced whiteness) is a quiet and humble Nigerian. One of the last men standing amongst the almost extinct tribe of Social Networkers in Nigeria. He works hard, for anything that is a common Good.

The Forum has recently been selected as the host/executive agency of the Bandwidth Consortium for African Universities under the Partnership for Higher Education in Africa. The Bandwidth Consortium is an attempt by these African Academic Institutions to form a bandwidth buying club, giving them the opportunity to buy Internet Bandwidth at a rate much lower than what commercial ISPs can negotiate and buy bandwidth. Nigerian Universities account for over 80% of the Universities in the Consortium, so choosing a Nigerian executive agency with its feet firmly on the ground will definitely give them very good leverage.

The Consortium was setup and funded by Donor agencies who are members.
 

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