[kictanet] Day 5 - Statistics onAffordability- CCKInternetStudyReport
Eric Osiakwan
eric at afrispa.org
Sat May 5 17:32:44 EAT 2007
Harry, thanks for adding your voice to this important rendition, this
is one of our key recommendation in the Open Access study to the
WorldBank but our leaders must ensure it happens because it is in our
interest to make it happen. By the way, this is exactly how fiber
grew in Sweden back in the Seventies and Eighties.
Eric here
On 5 May 2007, at 15:01, Harry Hare 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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>>> journalist,
>>> p.o box 33515,
>>> Nairobi.00600
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>>>
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>>>
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>>>
>>>
>>> --------------------
>>>
>>>
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>>> Check out [LINK:
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>>
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Eric M.K Osiakwan
Executive Secretary
AfrISPA (www.afrispa.org)
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