Israel Endale owns and operates Blue Broadband, an Internet café on the second floor of Friendship City Center on Bole Road. He provides Internet connections on 12 computers through a 256 kilobytes per second (kbs) connection he subscribes to from the Ethiopian Telecommunications Corporation (ETC) for 4,000 Br a month.
He is among the many businesspeople who have opened up Internet cafés in Addis Abeba but are complaining about the persistent problem in connectivity over the last couple of months.
“I used to earn on average of 500 Br a day, which recently dwindled to 200 Br, due to bad connection,” he said. “As a result, I am only making 6,000 Br a month, which is half of the 12,000 Br I pay for rent.”
The connection problem is not only limited to fixed line broadband; people who use ETC’s wireless CDMA network are also complaining.
Amnon Teshome, 23, has been running an Internet café for the past six years. He recently moved his business to Little Mogadishu, on Rwanda Street, an area where a lot of Somalis reside. He also changed his connection to EVDO, one of the services offered through the CDMA network but has recently found the connection problem to be too costly to run his business.
“I moved here because I thought I could get a lot of business as most of the Somalis who live here constantly keep in touch with their families and friends through the Internet,” Amnon told Fortune. “EVDO is too expensive just to have if I do not make money with it from the café.”
Dialup Internet, let alone broadband, was a luxury 10 years ago. Only organisations like the Economic Commission for Africa (ECA), the then Organisation for African Unity (OAU), and a few non-governmetnal organisations (NGOs) with their own satellites had access to the Web.
In January 1997, Ethiopia, through the state monopoly the ETC, joined the world of the Internet. Since then, a slew of customers, albeit slowly at first, have subscribed to the 56kbs connection, and gradually the broadband connection. Even this was limited to people who had businesses and owned computers.
Since 2002, when ETC started allowing the establishment of Internet cafés, access to the Internet has been made available to the public from 10 cents per minute of use, depending on the establishment.
Israel has been involved in Internet cafés in various locations, and even in Dire Dawa, for a number of years. He has upgraded from a dialup connection to a fixed line broadband connection in order to attract customers by offering a reduced price. He is not the only one who has moved from using dialup to broadband. Many new and existing customers of ETC have migrated to its new CDMA broadband connection that was implemented by the Chinese telecom company, Zhong-Xing Telecomunications Equipment (ZTE). In 2007, ETC and ZTE signed a contract to implement the CDMA network, which was made available to the public in 2009.
“The subscription rate for the CDMA 1x and EVDO services is too fast and it has gone far beyond both ETC’s and our expectations when we signed the contract in 2007,” said Zhang Yanmeng, chief executive officer (CEO) of ZTE.
Like the fixed line broadband, CDMA users have also been experiencing trouble getting the bandwidth they paid for. ETC offers two types of connections: CDMA 1x and EVDO, through CDMA. The 1x service promises on average of 70kbs, while EVDO offers a 300 to 700kbs connection.
Subscribers use the 30 base transmission stations (BTSs) for the CDMA network located around the capital to share the 3.1 megabytes per second (mbs) connection available on each.
“The CDMA BTS, constructed according to the original expectation, became far too little to carry so many customers,” Yanmeng told Fortune in his office, located on Sevita Building on Bole Road. “Here at the office, around 30 people use the BTS located at the Bole Airport. If you add that to the other customers currently connected through that, the connection becomes very slow.”
The connection on one of the computers using EVDO at the office, which is supposed to get at least 300kbs, was connected at 56kbs - equal to what one would get on a dialup connection.
By July 2010, subscribers to EVDO increased to 6,679 and CDMA 1x to 47,073 from 304 and 2,359 subscribers, respectively, a year ago, according to data obtained from ZTE.
“ZTE and ETC have agreed to construct more CDMA BTSs to solve the bottleneck,” Yanmeng said. “We are sure that CDMA customers will feel much better after the BTS expansion.”
At the moment, owners and customers are far from feeling good. Internet cafés used to be a somewhat profitable business but depends on providing uninterrupted use of the service to customers. However, many owners who pay for fixed line and wireless broadband have recently been suffering due to the lack of dependability of the connection.
Many of the owners have to deal with a loss of revenue, not only from the lack of connection, but the loss of their frequent customers who, being unable to get their usual service, move on to other centres.
“My monthly expense is 3,000 Br but my income has been below 2,000 Br,” said Amnon, who tries to make up for the loss by doing PC maintenance, selling software, and designing some advertisements and promotions. “Had it not been for these, I would not have stayed in the Internet café business.”
Unlike Amnon and Israel, Alemtsehay Solomon, owner of Sunshine Business Center, located around Mexico Square, does not have to worry about rent because the place she uses for her business is owned by her family.
“My brother used to have a similar business a little farther from here, but he had to close the shop because he could not pay his rent and nor a profit due to the connection problem,” Alemtsehay, whose only expense is the 4,070 Br she pays to ETC for an EVDO connection, told Fortune.
The state owned telecom monopoly has long been under fire for the voice and data services it offers customers. Over the years, it has contracted different international vendors to lay down both its mobile and Internet connections. Since 2007, ZTE has been constructing and implementing its network.
ETC’s network for data and voice, which was running on Cisco’s network, whose capacity was almost used up, has been replaced with a new network called Internet Protocol Next Generation Network (IP NGN) by ZTE. This has enabled ETC to offer more services and add new customers in the past couple of years.
Bottlenecks in the access layer and Internet gateway are still not solved, one reason for the complaints from customers in the speed of and access to the Web. Like the CDMA network, the fixed line broadband offered by ETC has bottleneck problems, among others.
The Internet connection from Ethiopia connects to the international gateway through fibre optic cables laid to Djibouti and Sudan as well as one satellite. Although the cables have a capacity to transfer 10mb of data and voice per second, the bandwidth that ETC bought has only 2x622mb on the sea cable from Djibouti and 3x155mb on the cable from Sudan, while the satellite connection has 80mb.
“Although the IP core fibre optic cable has a huge capacity, the connection from the customer to the core fibre and from the core fibre to the Internet is still narrow,” Yanmeng, who has been overseeing ZTE’s project in Ethiopia, said.
The narrowness of data transmission capability on both sides has been unable to meet the demand from customers as the connection, which was established mainly to check emails, evolves. Many people, empowered through Internet cafés and ownership of PCs, are now constantly browsing the Web.
Social network sites like Facebook, My Space, and Hi5 and informational ones like Wikipedia and soccer web sites are among the most popular ones outside of yahoo, hotmail, and gmail, according to the Internet café owners.
Daniel Asrade frequents Sunshine Business Center to keep in touch with his girlfriend who lives in Canada. He uses Facebook to chat and Yahoo to email her. He complains that the connection problem usually has him sitting in front of the computer without an uninterrupted or fast connection.
“There are times that I pay 20 to 30 Br without even having talked to my girlfriend as much as I would like to,” he told Fortune. “Even though the connection is terrible, I always insist on paying, but the owners do not let me as I am a frequent customer.”
However, not all the Internet connection problems are caused by narrow bandwidth as there is an interruption in connection whenever the fibre optic cables are cut.
“The cables are not buried as deep as they should be,” Yanmeng said about the fibre optic cables that were laid by a previous vendor which he claims are only buried as deep as 50cm. “The one going out to Sudan through Bahir Dar is constantly being cut by road constructions. We had to replace 200km of that cable ourselves and bury it 1.2 metres deep.”
Some of the connection problems related with speed would be solved once the copper cable connections to the new IP NGN network are migrated from the previous Cisco network, according to Yanmeng.
Unless the bandwidth to the international gateway is increased, the same problem might persist, he said.
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