ISPs Groan as Telcos Hijack Internet Provision

Internet service providers (ISP) especially those who render services to low-end users are being eased out of operation telecom operators, no thanks to the telcos big financial muscles and provisions which now allow them to terminate services to the same users at cheaper rates, Nigeria CommunicationsWeek investigations has shown.
With shrinking customers’ base, inability to pay for the hub for traffic exchange, bandwidth as well as salaries, ISPs subscriber base have been reduced by over 60 percent.
Elsewhere, technological upgrades by both Code Division Multiple Access (CDMA) and Global System for Mobile communications (GSM) operators now help them deliver wireless broadband internet service at cost effective rate
The launch of 3G technology by the three major GSM operators has also made it possible for them to provide high speed internet service to its subscribers.
ISPs are also in for tougher times as telcos lay fibre optic cable infrastructure, which would enable them increase capacity and offer cheaper internet services.
Telcos licenses permit them to provide basket of services.
Nigeria CommunicationsWeek investigations showed that some ISPs have since closed shops and lost hundred of millions of naira in investment
A particular ISP operator told Nigeria CommunicationsWeek that he cannot even dispose of his computer systems and radio equipment, which are now outdated and of no value.
But some innovative ISPs have changed their business models employing WiMax technology that enables them to rollout hotspots, designed to capture the last mile subscribers.
Among subscriber in this category are iWay former Mweb, Emporium and SwiftNetworks.
Others are looking at diversifying their business by providing Wide Area Network (WAN) and Local Area Network (LAN) services – a move seen by industry watchers as survival mechanism.