[kictanet] Day 5 - Statistics onAffordability- CCKInternetStudyReport

Judy Okite judyokite at gmail.com
Sat May 5 20:11:15 EAT 2007


No cost reduction/tax waiver on modems,poles,switches etc the basics
of internet connection

On 5/5/07, Judy Okite <judyokite at gmail.com> wrote:
> Thnx Harry, to add on to Ur concern, as long as the ISP/IGO licenses
> are nt reviewed
>
> 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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> > http://kictanet.or.ke/mailman/options/kictanet/rebeccawanjiku%40yahoo.com
> > >>
> > >>
> > >>  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-]
> > >>  new cars at Yahoo! Autos.
> > >>  --------------------
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>
> --
> Judy Ann Okite,
> +254-721237507,+254-734252336
> P.O. BOX 2228 00100,
> NAIROBI,KENYA.
>
>
> "Even if you are on the right track, you'll still get run over if you
> just sit there."
>


-- 
Judy Ann Okite,
+254-721237507,+254-734252336
P.O. BOX 2228 00100,
NAIROBI,KENYA.


"Even if you are on the right track, you'll still get run over if you
just sit there."




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