The internet traffic is all international. So that means that ISPs have to pay for every hit a customer makes to foreign sites. In south africa we have many localy hosted websites, which costs almost nothing for the ISP.
Coupled with ‘Exorbitant electricity tariffs and local authority rates ‘
means that an ISP has to remain competitive, yet still offer a service. Profits are low.
Internet in Zimbabwe runs almost entirely on a satellite link. ‘ and running a link from Harare to New York costs about 300 times more than a link from New York to London’.
Another shocking fact is that ‘the ‘last mile’ link – which is the link between ISP and client but owned by IAPs, cost almost as much as the entire satellite internet link.’
ZOL Internet, reviewed on Biz-Community Africa