Business

Mobile operators reduce cost of data

BOCRA Headquaters. PIC MORERI SEJAKGOMO
 
BOCRA Headquaters. PIC MORERI SEJAKGOMO

The regulator engaged the sector as part of a broader push to ensure that communication services in the country remain affordable and aligned with the country’s digital transformation agenda. BOCRA said in a media release that the move followed a comprehensive costing and pricing study undertaken by the Authority to determine the actual costs of delivering various communications services in Botswana. The study encompassed both wholesale and retail services and was conducted in consultation with industry stakeholders.

“In pursuit of its mandate of promoting affordability of communications services and in line with the ideals of a digital economy, BOCRA conducted a costing and pricing study aimed at determining the actual costs of delivering various communications services in Botswana,” the regulator said in the release.

In June 2025, the parastatal that oversees the telecoms sector issued a directive requiring operators to revise tariffs by mid-August.

These approved tariffs now serve as ceilings, with operators free to offer lower prices.

While reductions were applied across both prepaid and postpaid services, the focus was on prepaid, which accounts for 96% of subscriptions.

Mascom Wireless, which holds approximately 40% of the market, has announced lower charges on several services, including a reduction in off-net SMS from P0.40 to P0.36 and an 18.56% drop in data costs per MB to P0.80.

Voice call charges, however, remain largely unchanged during both peak and off-peak hours.

BOCRA noted that bundled services such as voice, SMS, and data packages are expected to become more prominent as operators compete to offer more affordable options compared to standalone pricing.

On the wholesale front, the Authority confirmed that all three operators reduced the mobile termination rate from 13 thebe to nine thebe in July 2025, with gradual cuts planned until the rate reaches two thebe in 2027.

Termination rates are fees charged between operators for carrying calls across networks.

To further stimulate competition, BOCRA has also engaged Botswana Fibre Networks (BoFiNet) to review its wholesale broadband offerings by September 2025.

“The intervention enhances transparency, promotes effective competition, and ultimately delivers affordable communication services,” BOCRA said.