0.0456 of what?
0.0456 or approximately 4.6 USD cents ($0.0456) is the average cost of one minute of talk time on a mobile phone in the East Africa Community (EAC).
So which countries in EAC have the highest and and which the lowest rates?
Despite several advertisements and promotions seen throughout the region, most major providers in EAC countries are offering very similar rates.  At the time of writing we found the highest rates in Burundi ($0.06 USD) and some of the lowest rates with Tigo in Rwanda ($0.01 USD) and Airtel in Uganda ($0.02 USD).Other providers were much closer to the average cost per minute.  As telecom costs in the EAC are one of the most dynamic pricing markets in the world, the amounts reflected here are highly subject to change.
 How does this compare to other regions of the world?
Calling costs in the EAC are quite reasonable compared to other parts of the world, though rates can vary dramatically. Countries with challenging environments such as the Pacific island nation of Tuvalu with heavy satellite infrastructure needed to connect people disbursed across islands see costs upwards of $0.60 US per minute.  In more developed European countries telecom and taxation policies drive cost variations from $0.02 USD in Denmark or Norway up to $0.53 USD per minute in the Netherlands.  Strong consumer-friendly telecom policies and technological prioritization has brought the cost down to below $0.01 USD per minute in places like Hong Kong and Singapore, the world’s cheapest place to talk on your phone.
 Are calling costs going up or down in the EAC?
 A few years ago calling costs in the EAC were noticeably higher relative to today, especially the roaming charges, but costs have come down significantly over the past five years and show signs of continuing to reduce.  This is due to increased competition amongst providers and a higher volume of consumers using mobile phone services.  In addition, as communication technologies for mobile phone communications continue to mature, we should also see costs come down.
 That said, challenges in the telecom sector as services for data such as WhatsApp, Facebook Messenger, and others increasingly cutting into the telecom company revenues and profits are causing an increase in data services use which may affect talk time prices in unpredictable ways.
How does the cost of communication affect economic growth in EAC countries?
Communications is the cornerstone of commerce. The easier and cheaper communication is, the greater the volume of commerce.  For developing countries, it has been shown that mobile phone penetration has a positive impact on GDP growth. In the late 1990s and early 2000s research showed that for every 10% increase in mobile phone penetration there was a 0.44% to 0.59% increase in per capita GDP growth.  More people talking means more people are connected and more people can trade which has virtuous effects on overall economic development.
Source: The Exchange

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.