[kictanet] kictanet] Day 5 - Statistics on Affordability - CCKInternetStudyReport

[bitange at jambo.co.ke]

Dear All,
I think you are getting it wrong on the World Bank Loan.  The purpose of
the loan is to stimulate demand a head of cheap bandwidth from the fibre
cable.  Areas that we thought needed stimulation include Rural ICT
Centres, the Government, Universities and Colleges and BPOs.

The procurement of subsidized bandwidth is to be done openely where all
operators would have a chance.  This does not in anyway compromise any
private sector because they would be paid the market rate of bandwidth.

The participation of Government in construction of Terrestrial fibre
networks and the undersea cable was to fast track availability of cheap
bandwidth that would in turn help the economy to grow faster.  Secondly,
we needed an open access model that would help SMEs in this country to
compete with the big boys.  With this network we shall see SMEs competing
with the likes of Jamii, KDN on an equal footing.  Thirdly, the private
sector had failed to provide necessary infrastructure for economic
development and finaly no operator was interested in rural Kenya until the
Government made the business case for rural ICTs.

In any case the Government has no interest in competing with the private
sector.  Our role is to facilitate development.  Infrastructure in the ICT
sector had lagged behind and what we have done is simply to facilitate its
development and leave the private sector to compete in an open access
platform.  We have the obligation to enable every Kenyan citizen to play a
role in economic development especially our SMEs that consititute 95% of
businesses in this country.

Therefore, there is absolutely nothing wrong with borrowing from the WB to
stimulate demand for the investment we are making in the ICT sector.  Some
of the funds will be used to develop capacity to utilize ICTs and
development of local content.  In essense we are stimulating demand that
would become consumers of private sector products.

Regards

Bitange Ndemo.




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