YooMe is a privately held Swiss company that has two African Internet service provider (ISP) businesses, one in Cameroon and the other to open soon in Côte d’Ivoire. Its CEO, Dov Bar Gera, has set up and sold ISPs in Eastern Europe, but his focus now is Africa.
YooMe’s Cameroon operation has deployed WiMax and it claims to have covered 85% of the population in the country’s two main cities, Douala and Yaounde, with 20 base stations. Its main competitors are the two mobile operators, MTN and Orange, and a handful of smaller ISPs.
It has taken significant market share, having about 20 000 of the 50 000 broadband subscribers in the country if you define broadband as 512kbit/s or faster. Overall, Bar Gera estimates that there are probably around a million Cameroonians who use the Internet at least once a week.
But there is a cap on growth as the monopoly international bandwidth provider, Camtel, has not reduced its wholesale prices. “Because of this monopoly, international bandwidth is five to seven times more expansive [than in other more competitive countries].” Obviously, higher wholesale prices lead to more expensive retail prices, which in turn means a smaller market.
YooMee’s next move is to roll out a time-division duplexing long-term evolution (LTE) network in Côte d’Ivoire’s capital, Abidjan. It will launch a network of 35 base stations from Alcatel Lucent in the second half of February, which, according to Bar Gera, will provide “good coverage in populated areas. We will also be looking at the lower income segments.”
He’s quite dismissive of WiMax vs LTE comparisons: “Subscribers don’t care whether it’s WiMax or LTE. They want to know the speed and price of the service. In Côte d’Ivoire, we will be delivering up to 2Mbit/s.” This speed is significantly less than Smile Telecom’s 6Mbit/s service. Prices have not been finalised yet but are likely to be in the US$32-51/month range, which seems competitive.
source: www.techcentral.co
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