Telecom

Canal Box's Entry Could Shake Up Benin’s Internet Market

Canal Box's Entry Could Shake Up Benin’s Internet Market
Tuesday, 11 March 2025 17:02

Competition is nothing new on Benin's internet market, but the potential arrival of another player signals an aggressive rivalry that will benefit consumers and contribute to the growth of digital services in the country.

Canal Box, the internet service offering from Vivendi, known for its aggressive pricing in other African markets, is set to launch in Benin. Although there’s been no official announcement so far, a source within the sector, who asked to remain anonymous due to the sensitivity of the information, confirmed the news. This marks the beginning of a new competitive battle in Benin’s internet market.

In the eight African countries where Canal Box is already available, Vivendi has quickly gained market share by offering high-quality services at competitive prices. According to details from the product’s website, customers can enjoy download speeds of up to 200 Mbps for a monthly fee ranging from CFA17,000 (around $28) to CFA54,000 (around $89), depending on the country.

The most recent fixed internet pricing (September 2024) from Benin’s telecommunications regulator, ARCEP, shows a stark contrast. The Société béninoise d’infrastructures numériques (SBIN) charges up to CFA100,000 per month for a 150 Mbps plan, while the Internet service provider (ISP) Isocel offers the same service for CFA160,000. For dedicated connections, SBIN’s fee reaches CFA3.3 million per month, and Isocel’s is CFA2.49 million. To stand out, Isocel focuses on excellent after-sales service and a long-standing presence in Benin’s economic capital, Cotonou.

For multinational companies like MTN and Moov Africa (a subsidiary of Maroc Télécom), mobile internet offers can go up to 2,000 gigabits for an unlimited plan, but at a steep price of CFA125,000 for 30 days. Starlink, owned by billionaire Elon Musk, still faces a high initial cost (CFA430,000) for equipment, with questions about its responsiveness in case of outages.

The entry of Canal Box is expected to increase the competitive pressure that has already been felt on the market. By the third quarter of 2024, MTN Benin had already seen a decline in revenue from its "services" segment, which includes internet, dropping to around CFA58 billion ($98 million) from nearly CFA67 billion in the same period of 2023. With Canal Box set to intensify the competition, Benin’s internet market holds promising prospects.

A report published in late January 2025 by the GSMA suggests that ongoing reforms in internet development and the digitization of sectors such as agriculture, industry, transportation, trade, and public administration could add an additional CFA514 billion in value, create 202,000 jobs, and collect CFA157 billion in taxes. If Canal Box’s competitive pricing helps democratize internet access, it could push ISPs to go beyond simple connectivity and offer more dynamic, wider solutions.

The key now will be the details of Canal Box’s entry into Benin. A major point to watch is whether Vivendi will rely on SBIN’s infrastructure for its connectivity or if the French company will deploy its own infrastructure, utilizing only existing support facilities like poles and cable routes. These details will help assess the true economic impact of the new player in Benin’s economy.

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