[kictanet] Day 5 - Statistics on Affordability - CCKInternetStudy Report

Fri May 4 13:16:02 EAT 2007

Agreed with Becky,

I expected more views on this touchy subject of
affordability.  I do know we had technical hiccups but I
trust they are now over...so lets hear more from the
stakeholders - Consumers, Operators, Government,
Regulators, etc.

walu.

--- Rebecca Wanjiku <rebeccawanjiku at yahoo.com> wrote:

> thanks Kai for the response,
> we need many people responding to this issue,
> 
> in my opinion, the government should find a way of using
> the WB money through the private sector, so that the
> private sector does not see as if the government is
> competing and killing the profit margin,
> 
> in this regard, the government could come up with some
> MOU with the private sector so that some of the money
> invested is government's and some PS.
> that way, part of the profits will be ploughed back (it
> will be mandatory)
> 
> i remember during the OFC workshop, Kai shared how IFC
> funded a private secotor consortium to carry out some
> survey at USD 300k and a similar survey carried out by
> govts was valued at USD 3m
> 
> maybe this can help reduce costs and provide a way for
> govt and PS to work together and deliver quality market
> services, develop the content and all..
> 
> its just an opinion, its not absolute,
> 
> lets hear as many voices as possible,
> it is at these forums/discussions that great ideas come
> up,
> 
> regards
> 
> Kai Wulff <kai.wulff at kdn.co.ke> wrote: Hello,
> 
> we leave it to the ISPs to create the demand. We were
> hoping that with our 
> rural initiatives, like connecting schools and showing
> them how to educate 
> the parents (and make money with this) will increase the
> demand on a natural 
> way.
> 
> What we have seen wit some Rural BTS, it takes about 12
> month until it is 
> break even ...
> 
> The problem is when you create the demand and then some
> World Bank money 
> starts to compete before you can recover the cost. It is
> my strong believe 
> that wherever a device can be operated, there WILL be a
> market. The private 
> sector needs the Government as a user there as well as
> the private companies 
> and consumers. Only then will the prices drop! We still
> focus too much on 
> the INTERNET, what most people need for a start is LOCAL
> information and 
> communication .. so I would say: 90% local IP traffic and
> 10% international 
> ..
> 
> Kai
> 
> 
> ----- Original Message ----- 
> From: "Joan Walumbe" 
> To: 
> Sent: Thursday, May 03, 2007 10:26
> Subject: Re: [kictanet] Day 5 - Statistics on
> Affordability - 
> CCKInternetStudy Report
> 
> 
> > Walu,
> >
> > I agree with you that affordablity is a factor
> especially for rural
> > communities when it comes to access to the internet.
> But I think that lack
> > of awareness is an even bigger factor. It's fine for
> the urban folk (who
> > already recognise the benefits to the internet etc.)
> taking a short break 
> > in
> > shags to have the internet access when back home, but
> it there is no 
> > demand
> > for the internet among the residents what is the point?
> >
> > So does KDN enter a market and then hope to create
> demand or is their a
> > market that demands the service or is it a little of
> both?
> >
> > I understand that Kai would not be venturing into the
> rural areas if it 
> > did
> > not make any financial sense.  Can anyone provide some
> info/statistics on
> > demand for internet access in rural areas?
> >
> > Joan Walumbe
> >
> > ----- Original Message -----
> > From: "John Walubengo" 
> > To: 
> > Sent: Thursday, May 03, 2007 9:01 AM
> > Subject: [kictanet] Day 5 - Statistics on Affordability
> - CCK 
> > InternetStudy
> > Report
> >
> >
> > Day 5- Statistics on Affordability.
> >
> > I acknowledge an interesting thread filtering in on
> Trust relationships 
> > b/w
> > IGOs/ISPs...feel  free to continue contributing on that
> as well as on
> > today's theme on affordability (multi-tasking
> > encouraged by internet technologies ...)
> >
> > and just to pick up from Kai's projection of KDN fiber
> hitting Bungoma in
> > early August 2007.  This would be quite a welcome and
> timely development,
> > but at what cost to the consumer? To  what extend will
> the (internet)
> > services be affordable to the rural/average
> communities?
> >
> > Affordability is a subjective term gven that what is
> considered cheap by 
> > the
> > Bill Gates of  this world is probably not so for the
> average Kenyan on the
> > street.  In trying to get an  objective measurement for
> affordability, the
> > Report pegged it on the national average  incomes.  In
> other words, if the
> > monthly average income in Kenya is around 100USD and if
> the  average 
> > monthly
> > cost for internet access is also around 100USD then
> obviously the average
> > Kenyan will not bother with accessing the Internet - it
> just becomes way
> > beyond their means  or too expensive or not affordable.
> >
> > The report indicated that access through the more
> convenient Internet
> > Dial-up/Desktop  services costed over 200% the average
> incomes (too
> > expensive), while the same access through  mobile
> phones was costing just 
> > 8%
> > of the average incomes (quite affordable).  What needs
> to  be done in 
> > order
> > to make Internet Services more afforable to Kenyans?
> >
> > 1 day deliberation on this one.
> >
> > walu.
> >
> >
> >
> >
> >
> > _______________________________________________
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> >
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> >
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> > 
> 
> 
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> 
> 
> Rebecca Wanjiku,
> journalist,
> p.o box 33515, 
> Nairobi.00600
> Kenya.
> 
> Tel. 254 720 318 925
> 
> blog:http://beckyit.blogspot.com/
>        
> 
=== message truncated ===>
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