[kictanet] Day 1 of 10: CCK Internet Study-Background Concepts/Overview

Tue Apr 24 18:16:22 EAT 2007

[Walu, apologies if I unintentionally for de/re-railed an 
otherwise well set out discussion structure. consumers 
are suffering everywhere and it's as important to be in 
touch with the current sorry state of affairs. For example 
look "Orange and Vodafone cripple Nokia's flagship" at 
http://www.theregister.co.uk/2007/04/18/n95_crippled/]

Back to CCK report,

>CCK commissioned Netcomm Information Systems (the
>Consultant) to undertake a study to establish amongst
>others, the following Internet indicators within the Kenyan
>Market:

Considering that this had never undertaken before in Kenya,
the study and results are most welcome

>1. The Internet service diffusion and usage patterns in
>different sectors of the Kenyan economy
>2. The general Internet service costing mechanisms employed
>by operators and service providers
>3. The key factors that hinder Internet market development
>4. The vertical and horizontal relationships of the
>Internet market in the country

TORs dwelt on "supply-side" (providers-side) only.We now 
need a "demand-side" or consumers focussed study.Clearly,
yeaning for connectivity consumers need to be heard if at all
"Free PC and cheap bandwidth responses" is anything to go 
by.

>In carrying out its terms of reference, the Consultant held
>several roundtable meetings with key stakeholders selected
>from the Government, Telco-operators, Internet Service
>providers and Consumers. The Consultant administered
>questionnaires which revealed the following key findings
>-categorised under Network Infrastructure, Internet
>Affordability and Dispersion as described below:

These meeting were very well attended, quite participatory 

>Network Infrastructure: This indicator establishes the
>structure and quality of the International and National
>(domestic) internet backbone across the country. It was
>found that following the liberation of the telecom sector
>to allow more players at the International Internet Gateway
>Operator (IGO) level, there has been a steady increase in
>the International Bandwidth capacity-currently at 1G and
>representing over 10% growth since 2004. However, the
>domestic Internet capacity continued to register limited
>growth, despite the availability of the local Internet
>Exchange Point (KIXP).

Maybe ISPs that do not peer at KIXP should be known.  

>Internet Tariffs & Affordability: This indicator
>establishes the capacity of consumers to afford the
>Internet Services. It is taken as a factor of the gross
>national income, in other words, the average cost of 1
>month Internet access measured against the average monthly
>salaries. It was found that internet service via mobile
>phone was much more affordable (costing 8% of average
>monthly incomes) as compared to via fixed lines (costing
>200% of the average monthly incomes). This was despite the
>falling rates of International Internet Bandwidth
>occasioned by competition at that level.

Mobile internet more "affordable" but;

1. Difficult for cell-phone intenet connection sharing; everyone 
must connect on own phone>> overall more expensive?  

2. Reliability: It is in small contract print - mobile companies 
give priority to more profitable voice over data whenever they wish
>> Mobile cheaper but undependable

3. Also no exuse for 200% high rates that never drop. Bandwidth 
cartels see http://www.tectonic.co.za/view.php?id=888

>Dispersion: This indicator establishes geographic reach and
>sectoral absorption of the Intenet Service. In essence it
>describes the e-Readiness status of the economy or for the
>Country. It was found that even though ISPs were present
>in all the 8 Provinces, they were hardly present at the
>districts level – covering only 30% of the districts in
>Kenya. In addition, of the three key stakeholders,
>Government, Educational and Commercial, the Commercial
>sector had the bulk of the existing Internet Connectivity
>(80%) while the Education Sector had the lowest (less than
>2%). Finally, of the estimated 2.8 Million Internet users
>in the country, 80% are in the capital city Nairobi, 9% in
>Mombasa and the rest (11%) are spread across the country.

Do I say?

>In attempting to improve the above bleak indicators, the
>Consultant made the following key recommendations:

>Network Infrastructure: That the Government and the
>Operators make a deliberate effort to extend the domestic
>Internet backbone through out the country. In addition,
>that the current license separation between the Internet
>Gateway Operators (IGOs) and Internet Service Providers
>(ISPs) be dissolved by combining their services into one
>license-the Data Communication Network Operator (DCNO)
>license. Finally, that the Regulator should publish and
>enforce quality standards in the provision of the Internet
>Services.

This is long overdue

>Internet Tariffs & Affordability: That the Regulator,
>introduces competition in the Fixed Telephone line service
>and a flat-rate tariff or volume-based model for dial-up
>internet services. Also, that despite the relatively
>cheaper Mobile internet services, further competition be
>introduce within the sub-sector to further drive down the
>rates.

Granted introducing another celco is not as easy as 
opening an extra kiosk, the good Regulator opened doors 
to community telcos which will help spur further competition

>Dispersion: That the Regulator reviews and implements the
>Universal Access strategy, enabling Operators to extend
>Internet Broadband services to ‘non-economical’ rural areas

There should be a mandatory provision "enforcing" corporate
responsibility to serve never-ever profitable such as children
homes. (Otherwise there no point donating foodstuff only 
on Christmas Day ;-)  

>in order to serve in particular educational and health
>institutions. That the Universal Access fund be utilised in
>promoting and creating local content in order to stimulate
>demand and usage. 

"Proposed levy is too expensive", says Celtel
Kenya <http://www.mobileafrica.net/n1587.htm>

>Finally, that the Regulator promotes
>Consumer Awareness programmes while the Government
>concludes and enacts the necessary legislative framework
>for supporting eCommerce uptake.

Noted: CCK Consumer Outreach Programmes Adverts in the 
press.

I am one day behind, will to try catch up

Alex

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