[kictanet] Day 5 - Statistics onAffordability- CCKInternetStudyReport
Harry Hare
harry at africanedevelopment.org
Sat May 5 15:01:58 EAT 2007
Dear Colleagues,
I was hoping to remain a spectator in this debate but looks that is becoming
difficult to achieve. I think we need to look at ICT infrastructure and
especially connectivity differently. We need to elevate the status and
importance of ICT infrastructure to the same level as roads and power.
Meaning any new infrastructural development in the country, should have
connectivity considerations factored in.
For instance when doing the feasibility study for the new roads soon to be
commissioned and to be supported by the Chinese Government, there should be
considerations of whether there is need to lay fiber alongside other
amenities such as power, lighting, walks ways and sewage.
Regards
Harry
-----Original Message-----
From: kictanet-bounces+harry=africanedevelopment.org at kictanet.or.ke
[mailto:kictanet-bounces+harry=africanedevelopment.org at kictanet.or.ke] On
Behalf Of Lucy Kimani
Sent: Saturday, May 05, 2007 11:24 AM
To: harry at africanedevelopment.org
Subject: Re: [kictanet] Day 5 - Statistics onAffordability-
CCKInternetStudyReport
Kai:
I see your point, again I will use my previous domicile as a case in
point, the Federal Government is the biggest employer/buyer of supplies
and services in the Washington DC metro area (Virginia, Maryland, and of
course Washington DC) hence e-governance/e-learning is a must and I think
the Kenyan government recognizes this from the various initiatives
currently on going, I just think its just a matter of time.
The only point where you and i part ways is your stand that the Government
should not be involved in infrastructure building because the Government
has an obligation to ensure that all Kenyans have access to the internet
while the private sector has to have a business case to justify coverage
of any particular area, so I say both efforts Government and Private
sector must compliment each other.
With all the initiates on the drawing boards of both the government and
the private sector, I say let all move from the drawing boards into
implementation, Kai the computers at Kambaa Girls are gathering dust, and
Bw. Ndemo, I signed up for both the digital village and digital school
during the KICC expo and I have not heard a word on the way forward from
your end.
LK
> My point is:
>
> Yu have limited room for infrastructure since the cost is constant and
> only
> increased usage can drop the price. The Government should NOT be a
> competitor but a price sensitive user!
>
> You will have enough people now competing for the business of the
> Government
> and the private users .. That forces prices down. Having a state owned
> cable
> or a state owned Telkom is in my opinion not the way forward.
>
> Rgds
>
> Kai
>
>
> -----Original Message-----
> From: kictanet-bounces+kai.wulff=kdn.co.ke at kictanet.or.ke
> [mailto:kictanet-bounces+kai.wulff=kdn.co.ke at kictanet.or.ke] On Behalf Of
> Wainaina Mungai
> Sent: Saturday, May 05, 2007 10:35
> To: kai.wulff at kdn.co.ke
> Subject: Re: [kictanet] Day 5 - Statistics on Affordability-
> CCKInternetStudyReport
>
> Kai said;
>> The problem is when you create the demand and then some World Bank money
>> starts to compete before you can recover the cost..
>> ...The private sector needs the Government as a user there as well as
>> the
>> private companies and consumers. [Only then will the prices drop!]
>
> Pricing
> I would like to assume that competition from government is as good as
> competition from other market players. The beauty of competition is in the
> way it forces the private sector to put a smile on the face of every
> consumer ;-) so as to guarantee revenue. I am convinced that a significant
> drop in prices results only from fierce competition and some degree of
> regulation. TESPOK and others fought for years to introduce competition
> which resulted in the current lower prices of internet and telephony
> services.
>
>
> The recent intervention of CCK on the pricing of mobile services is a case
> that proves that price controls may become necessary to protect consumers.
> For internet services, we need many 'small scale' providers whose products
> and pricing would be more market-driven and responsive to fluctuations in
> consumer needs.
>
> For instance, an internet user paying KShs. 6,000 per month for DSL per
> month is actually incurring 14 cents per minute for a 30-day month. This
> is
> a great deal for any 24 hour user who may even make money through such
> access to the internet. The same user would be said to incur 28 cents per
> minute if s/he were to use the link for an average 12 hours per day at the
> same monthly rate. There may be a catch here but there is a high
> probability
> that more businesses can survive on such low rates and pass such rates
> down
> to rural consumer.
>
>
>
> ---
> Wainaina Mungai
> http://www.madeinkenya.org
>
> SUSTAINABLE DEVELOPMENT is development that meets the needs of the present
> without compromising the ability of future generations to meet their own
> needs.
>
>
>>
>> FROM: kictanet-bounces+kai.wulff=kdn.co.ke at kictanet.or.ke
>> [mailto:kictanet-bounces+kai.wulff=kdn.co.ke at kictanet.or.ke] ON BEHALF
>> OF
>> Rebecca Wanjiku
>> SENT: Friday, May 04, 2007 10:23
>> TO: kai.wulff at kdn.co.ke
>> SUBJECT: [kictanet] Day 5 - Statistics on Affordability -
>> CCKInternetStudyReport
>>
>>
>> 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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>>
>> Rebecca Wanjiku,
>> journalist,
>> p.o box 33515,
>> Nairobi.00600
>> Kenya.
>>
>> Tel. 254 720 318 925
>>
>> blog:http://beckyit.blogspot.com/
>>
>>
>> --------------------
>>
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