The ceiling price for monthly rental of dark optical fiber in Togo has been reduced by 60%, from 75 FCFA (0.12 USD) to 30 FCFA per linear meter. This significant reduction, announced by the Regulatory Authority for Electronic Communications and Posts (ARCEP Togo) in its decision No. 003/ARCEP/DG/25 of Thursday, January 16, aims to regulate wholesale services between operators and Internet access providers to make connectivity more affordable.

“Affordable and fairly priced access for all operators and Internet access providers to national and international transmission infrastructures has become crucial to accelerate the deployment of fixed and mobile broadband in the interior of the country and ensure better availability of fixed and mobile services. In addition, this will promote the effectiveness of competition and consequently lead to lower prices on the retail market ,” explains ARCEP in a press release.

This decision is based on a cost audit of the main telecom operators Togocom and Moov Africa. It is also part of a broader regulatory framework, in particular Order No. 007/MENTD/CAB of 2022 on the sharing of passive infrastructure. These reforms aim to promote an open and competitive wholesale market while supporting the Togolese government’s ambitious digital projects, such as improving broadband connectivity.

According to a World Bank report titled “Digital Economy for Africa: Diagnostic for Djibouti,” a 10% increase in broadband connectivity can boost a sub-Saharan African country’s GDP by 1.4%. In this sense, reducing wholesale costs in Togo is expected to boost the national economy while improving digital inclusion, especially in remote areas.

This drop in wholesale costs should also allow Internet service providers to offer more competitive offers, making connectivity more accessible to a majority of the population. Rural and isolated localities, often penalized by insufficient infrastructure, should benefit from more extensive coverage of broadband services. In addition, start-ups and SMEs will have access to more affordable digital services, promoting innovation and economic development at the local level.

Source: Agency EcoFin