[kictanet] Day 5 - Statistics onAffordability-CCKInternetStudyReport
Sammy Buruchara
buruchara at mac.com
Sun May 6 08:56:11 EAT 2007
Kai,
I support your view entierly. For a long time I have maintained that
govt. should support and not compete with Private sector.
Sammy Buruchara
CEO NairobiNet
On May 5, 2007, at 11:58 AM, Kai U. Wulff wrote:
> Lucy,
>
> If the Government acts as a buyer of capacity and services in ALL
> regions of
> the country and the private sector builds the networks required,
> you have
> taken care of the Universal Access requirements, enabled the
> business case
> for various layers of private sector companies and avoided to
> distort the
> market by creating another state owned utility. Look at the
> examples where
> communication has really taken off, the incubator was the demand,
> not state
> owned infrastructure.
>
> 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
> Judy Okite
> Sent: Saturday, May 05, 2007 19:25
> To: kai.wulff at kdn.co.ke
> Subject: Re: [kictanet] Day 5 - Statistics
> onAffordability-CCKInternetStudyReport
>
> 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.
>>>>>
>>>>>
>>>>>
>>>>>
>>>>>
>>>>> _______________________________________________
>>>>> kictanet mailing list
>>>>> kictanet at kictanet.or.ke
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>>>>>
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>>>>>
>>>>
>>>>
>>>> _______________________________________________
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>>>>
>>>> Please unsubscribe or change your options at
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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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>>>> Check out [LINK:
>>>>
>>>
>>
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> new_cars.html;_ylc=X
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>>>> new cars at Yahoo! Autos.
>>>> --------------------
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>>>
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>>
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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."
>
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