Fibre operators muscling out internet service providers

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Supplying both services means the companies hamper healthy competition, which affects pricing and delivery

For most city dwellers living in a Covid-19 world, waking hours are increasingly spent online for activities related to work, school, shopping, leisure or life in general. More consumers need good internet connectivity at home, and for more reasons than before.

However, over the years we have seen fibre-network operators launching their own ISPs as part of complicated shareholding structures. This has created direct competition with their current ISP customers. It seems this trend is now increasing, and there are also other nontraditional players, such as DStv, launching live-streaming services by getting ISPs on board and creating on-demand streaming-only bouquet services.

This approach means the FNO-owned ISPs can decide pricing and service-level agreement conditions to suit their pockets and not their customers’ experience. In the long run, it is the customer who will suffer due to higher prices and poor service.

 

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