[kictanet] Day 5 - Statistics onAffordability- CCKInternetStudyReport

Judy Okite judyokite at gmail.com
Sat May 5 19:21:56 EAT 2007 

Thnx Harry, to add on to Ur concern, as long as the ISP/IGO licenses
are nt reviewed, no tax waiver

On 5/5/07, Harry Hare <harry at africanedevelopment.org> wrote:
> 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/
> >>
> >>
> >>  --------------------
> >>
> >>
> >>  Ahhh...imagining that irresistible "new car" smell?
> >>  Check out [LINK:
> >>
> >
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> > 3oDMTE1YW1jcXJ2BF9TAzk3MTA3MDc2BHNlYwNtYWlsdGFncwRzbGsDbmV3LWNhcnM-]
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+254-721237507,+254-734252336
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"Even if you are on the right track, you'll still get run over if you
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