Business News of Friday, 23 November 2012

Source: myjoyonline

Vodafone defends broadband cap

Vodafone Ghana has defended its plan to introduce a cap on its fixed broadband service saying it is critical in enhancing service-delivery for the larger segment of its customer-base.

Unlike the current situation where with just 45 cedis, customers enjoy unlimited data, the company plans to introduce capped packages starting from 15 Gigabyte valid for 30days @ 65 Ghana cedis.

The customers in question are consequently outraged by this whilst there are also concerns the higher cost would only widen the digital divide. But Chief Executive, Kyle Whitehill explains to JOY BUSINESS, the move is a purely business-decision and best practice usually triggered by market trends.

“In mobile data 10 percent of rthe customer base consume 90 percent of the traffic whilst in fixed broadband, 1 percent of the customers base consume 99 percent of the traffic. But these 1 percent are killing my network but I have to build to generate profit to invest back into the network. So that the only way out and it’s a phenomenon all across the world – exactly the same debate” he said.

He maintains the move is to enhance service delivery to its customers but admits the shortcomings in the communication of the issue to customers.

“I cant afford to provide the service at the current rates as I cant make some money to invest more in the network which is critical. Though I think we’re perfect, in our communications we made some mistakes but I say it doesn’t make sense to run a business on a consumer product. So now I say get yourself unto a business tariff and get pay a premium and get a completely different service and, more bandwidth and better service” he concluded.