ESCCOM TO REDUCE 60% OF EPTC’S WHOLESALE RATES

MBABANE- In an effort to ensure all communications services best promote economic and social development, including protecting end-users from excessive pricing, ESSCOM has planned a 60 per cent price reduction.

ESCCOM stands for Eswatini Communications Commission. This decision was taken in terms of Section 37 of the Eswatini Communications Commission Act, 2013. The Eswatini Communications Commission (ESCCOM) is the regulatory body responsible for regulating the communications sector in Eswatini, constituting of telecommunication services and networks, broadcasting services, postal services and the use and allocation of radio spectrum. It derives its mandate from the Swaziland Communications Commission Act no. 10 of 2013.
According to the ESCCOM’s findings on the pricing benchmark a study conducted from 2020, the commission undertook an assessment of Eswatini Posts and Telecommunications Corporation (EPTC) wholesale leased line,  broadband and Installation costs and compared EPTC’s available wholesale leased line prices, wholesale internet broadband prices and installation prices with similar-sized markets within Southern African Development Community(SADC). The benchmark countries were Botswana and Lesotho. This will be good for the business community as it will lessen the costs.

Installation

The findings concluded that Eswatini prices remained the highest for wholesale installation fees, wholesale leased lines and wholesale internet broadband with comparable and competitive markets in the SADC region. “Interconnection or access service prices in Eswatini are high, which contributes to market distortion in the downstream market for leased lines and internet broadband, to the detriment of end-users,” reads the report. In 2017, the average annual prepaid voice and SMS basket price locally was almost six times higher than the lowest priced annual basket price, which was recorded at US$ 2.13 (E31. 87) in Kenya. ESM’s launch in 2017 effectively reduced the kingdom’s voice and SMS mobile price from USD 11.8 (E165) to US$6.5 (E97.25) in 2018. In the last year of the review period, Eswatini’s voice and SMS price basket was relatively competitive at USD 5,8 (E86,78) placed slightly higher than Zambia. Tanzania took a price in both 2018 and 2019, pricing its voice and SMS basket as the most expensive within this grouping. In light of the findings, the commission issued a proposed decision for public consultation and further received comments from the Competition Commission, EPTC and MTN Eswatini.

Decision

The final decision was then taken in terms of Section 37 of the Act as it issued a final decision on the implementation of the 60 per cent price reduction on a three year glide path as follows:
EPTC to review and reduce current wholesale installation costs;
EPTC to introduce a flat fee installation cost for all bandwidth speeds;
EPTC to offer wholesale last mile ADSL - shared internet access services at wholesale rates;
EPTC to review and reduce all wholesale national leased line rates; and
EPTC to review and reduce all wholesale internet bandwidth rates across all speeds.
Other key findings were that Installation costs for international leased lines remained constant for the assessed bandwidth offerings, with the monthly (usage) rates also constant between 2017 and 2018, increasing in 2019 by 52 per cent for the 10 mbps and by 35 per cent for STM-1 and STM-4 bandwidth offerings. It was further recommended that the installation costs be reviewed downward and that a flat flee be charged across all bandwidth speeds.

It was also envisioned that it will significantly lower prices, due to the area coverage of the country which in turn can save money for businesses and the country at large.  
Also, it was concluded from the findings that wholesale pricing in Eswatini is significantly higher than that of Botswana despite both countries being landlocked with similar pricing constraints. For example, Botswana Fibre Networks (BOFINET’s) current leased line (and internet included) fee are between 854 per cent and 2 286 per cent lower than EPTC’s for similar bandwidths.

Eswatini Consumer Association Bhanyaza Mdluli said the decision was most welcomed, given the price increases the country had experienced in the past. “The decision is most welcome. Consumers have been faced with so many increases and such a reduction would b be appreciated,” he commented. The ESCCOM Commission became operational on the  July 31,2013, effectively taking over all the regulatory powers of the sector from the EPTC and Eswatini Television Authority (Eswatini TV).

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