Enterprises can now pay for internet connectivity based on their monthly usage.

This follows the launch of a consumption-based billing service dubbed IS Open Network (ISON) by Internet Solutions.

The solution, which is now available in Kenya, Uganda, Tanzania, Mozambique, Nigeria and Ghana, is expected to help companies cut down on the overheads experienced during downtime and off-peak seasons.

Speaking during the launch of the service, Internet Solutions Kenya Managing Director Richard Hechle said most companies in emerging markets want to consume the internet as a utility, like electricity and water, where they are only charged for what they use monthly.

“With this new service, our clients will be given an open pipe and can utilize as much bandwidth as they like and only pay for what they have used at the end of the month. It also allows them to set limits depending on how much they would like to consume without calling our support team,” said Hechle.

He noted that as internet and backbone service providers continue to upgrade their infrastructure to accommodate increasing demand for bandwidth, the flat-rate “all you can eat” pricing schemes and their inherent cross-subsidies continue to create economic inefficiency and wasteful resource allocation.

The new consumption-based service will be a push driven engagement targeting discerning intelligent enterprises on a path to digital transformation – those who need an open network and bandwidth and are also looking for an enhanced experience at a cost-effective rate.

Clients will have four options to choose from: 20Mbps, 50Mbps, 100Mbps and STM1 – 155Mbps last mile options but only on IS network.  

“We have listened to our clients’ feedback and decided to change the economic structure of our IP business by implementing usage-based billing. Primarily, the objective or problem being addressed is not pricing but a technical issue to ensure a good client experience by having an open network and addressing bandwidth demands in a cost-effective way,” he said.

Hechle said IS was also planning to roll out non-connectivity enterprise solutions as it seeks to grow its market share and revenue. Recently, IS launched its first virtual software defined network solution (SD-WAN), integrated cloud mail service targeting SMEs, VOIP service and Monitoring-as-a-Service solution that will enable clients to have visibility of their entire IT infrastructure.