Mini-budget 2008 – ICT sector

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I’ll get straight to the point that concerns most Internet users. The whole PDF can be downloaded on the Ministry of Finance site or direct link here.

Chapter G Section (20) – ICT

The ICT sector is proving to be more resilient than most other sectors. The global economic downturn has increased outsourcing to Mauritius. As a result firms operating in that sector, in particular the ITES/BPO enterprises are increasing employment and looking to a strong growth performance in the coming year. Our strategy therefore is to support that industry as it takes advantage of the more favourable market conditions so as to maximise offsets to the adverse impact in other sectors. To this end, we are setting up the Data Protection Commissioner’s Office. The Data Protection Act will be amended at the first opportunity in the next session of the National Assembly to conform with EU rules to make Mauritius a recognised jurisdiction. This will open opportunities for more upscale investment in the sector.

All issues standing in the way of the utilization of our Satellite Orbital Slot have been addressed. ICTA will start a coordination exercise with the International Telecommunications Union and a call for Expression of Interest will be launched for Commercial exploitation of our Satellite Orbital Slot.

In line with Government policy, the ICT Authority has determined a reduction in the wholesale bilateral half-circuit tariffs for International Private Leased Circuit (IPLC) of the order of 35%, on average to be implemented on 1 January 2009. This is primarily intended for the Information Technology Enabled Services (ITES) sector which includes the BPO and Call Centre operations. It will reduce the cost of operation of companies operating in the ITES to enhance their competitiveness.

On the basis of the lower IPLC price, Internet Service Providers (ISP) will be able to offer consumers lower prices on ADSL. Their proposals should be rapidly processed by ICTA. In parallel, MT is investing in upgrading the internet infrastructure to provide a better internet experience to users including higher access speeds. We expect lower prices to be offered to consumers by March 2009, associated also with an improvement in the service.

Great news!!! There’ll be a decrease in the price of Internet! But wait… there’s no need to be over-enthusiastic – I’ve run out of fingers counting the number of times it had been rumoured that there’ll be a decrease in the price of ADSL. I’m tired of crying wolf – I’d better wait for the wolf to appear…

Btw yesterday’s Internet slowness was due to a severed cable in the Mediterranean that affected Europe, Middle East & Asia. Read more on BBC.