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New bandwidth tax: Step in the wrong direction

ADSL South Africa (Broadband South Africa), 4 September 2009

One cannot blame anyone for thinking that the Government of the Ivory Coast (Côte d’Ivoire) sucks after news that they have introduced a new tax on international incoming voice traffic. This is not the way to go if one considers the damage this will have on the push towards faster and more affordable broadband access in Africa, including South Africa.

New bandwidth tax will come at a price…

The new bandwidth tax introduced by the Government of the Ivory Coast requires that any foreign company that benefits from interconnection needs to pay 20 CFA francs (more or less 35 South African cents) per minute of international incoming voice traffic. ADSL South Africa (Broadband South Africa) is of the opinion that this is a HUGE mistake if one considers that the government income originating from the new tax will be a drop in the ocean compared to the loss of income and other devastating effects this new tax will have.

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