You are currently viewing Togo regulator cuts wholesale connectivity costs by 60%

Togo regulator cuts wholesale connectivity costs by 60%

  • Post author:
  • Post category:News

In a landmark move to modernize its networks and enhance digital inclusion, Togo has announced a 60% reduction in the ceiling price for the monthly rental of dark fiber. The rate has been cut from 75 FCFA (0.12 USD) to 30 FCFA per linear meter, as outlined in decision No. 003/ARCEP/DG/25 by the Authority for the Regulation of Electronic Communications and Postal Services (ARCEP Togo) on January 16, 2025.

The reduction aims to regulate wholesale services between operators and internet service providers, fostering competition and reducing connectivity costs for end-users. “Affordable and fair access to transmission infrastructure is crucial to accelerate broadband deployment in rural areas, enhance service availability, and drive down retail prices,” ARCEP said.

This decision follows an audit of major telecom operators Togocom and Moov Africa and aligns with broader regulatory efforts, including the 2022 decree on passive infrastructure sharing. These measures are part of Togo’s digital transformation agenda, targeting improved broadband access in underserved regions.

Lower wholesale costs are expected to empower internet service providers to offer more competitive packages, expand high-speed service coverage, and stimulate economic growth. According to a World Bank report, Digital Economy for Africa: Diagnostic for Djibouti, a 10% increase in broadband connectivity can boost GDP by 1.4% in Sub-Saharan Africa. Startups, SMEs, and rural communities are set to benefit from more affordable and accessible digital services, fostering innovation and local development.

Similar efforts have demonstrated transformative potential. For example, when MainOne launched in West Africa 14 years ago, it reduced international bandwidth costs by 76% while providing 10 times the capacity of existing infrastructure, significantly improving local networks and lowering data tariffs for mobile users. Togo’s price reduction is expected to achieve similar outcomes, making digital connectivity more accessible and inclusive.