Botswana Fibre Networks (BoFiNet) has cut wholesale internet rates by an average of 19.5 percent, a move aimed at improving affordability and widening access to digital services across the country.
Acting Chief Executive Officer Keabetswe Segole said the reductions follow recent network capacity upgrades and are expected to help Internet Service Providers (ISPs) pass on savings to households and businesses.
โThis approach lowers the effective per-unit cost for customers, which they can pass on to end-users, thereby advancing affordability and access to connectivity,โ Segole said.
National Leased Line services fell by an average of 18 percent and Internet Protocol Transit services by 23 percent. While BoFiNet cannot compel ISPs to transfer the savings to consumers, Segole said he is confident the Botswana Communications Regulatory Authority will play a role in ensuring compliance.
Segole acknowledged the competitive pressures facing BoFiNet, citing the entry of low-earth orbit satellite providers such as Starlink, which competes with ISPs, and the presence of companies like Paratus, which operate both wholesale and retail networks.
โObviously, if an ISP struggles due to Starlink, it will have an impact on BoFiNet,โ he said.
The duplication of fibre networks across the country has also eroded profitability, but Segole said competition ultimately benefits the market. โYou do not want to be in a market where you are the only provider. Competition pushes everyone to wake up,โ he said.
Other challenges include customers adopting a โpay-as-you-growโ model that delays upgrades, the rollout of 5G mobile networks that may reduce demand for fibre services, and falling prices for core products such as IPT.
Despite the hurdles, BoFiNet is pursuing opportunities in the African data centre market. Its Digital Delta Data Centre went live in November 2024, positioning the company to capture demand from enterprises and cloud providers while complying with the Data Protection Act.
Financial results for 2024 reflect the tough environment. Gross profit fell 15 percent to P139 million, but cost-cutting helped BoFiNet swing back into the black, with a profit after tax of P12 million compared with a P7 million loss in 2023. Operating profit nearly doubled to P29.7 million.
BoFiNet also continued to support the countryโs digital transformation agenda. Under the SmartBots Village Connectivity Project, it deployed 1,138 free Wi-Fi hotspots in schools, health facilities and dikgotla nationwide. Completed backbone and access projects created 501 citizen jobs and injected P165 million into the local economy.
