[kictanet] Day 5 - Statistics on Affordability- CCKInternetStudyReport
alice
alice at apc.org
Mon May 7 21:08:31 EAT 2007
Dear all
Talking about government’s engagement in infrastructure development, the
Malaysian government, for example was one of the first to attempt to
replicate the Silicon Valley model in a developing country. “In its
attempt to move the ICT sector to attract domestic and foreign private
investment, the Malaysian government invested in creating a world class
physical and information infrastructure. Called the Multimedia Super
Corridor, this USD 40 billion initiative now serves as the backbone for
the country’s information superhighway. The network is supported by a
high-speed link, which connects to Japan, ASEAN, the US and Europe. The
network is also capable of supporting extensive public, education and
business applications”. Beyond infrastructure, the Malaysian government
provides attractive tax incentives for world-class technology-led
companies to participate in the MSC initiative. And most importantly, it
launched actions to provide a well-educated work force with relevant
skill levels ranging from technical to research.
I see nothing wrong with the Kenya government investing in
infrastructure for public good, while private sector supporting this
venture by perhaps focusing on the infrastructure as well, technology
aspect, content, applications, skills, civil society assisting by
ensuring there is demand at the local/rural level, etc
The idea here being partnerships. We do seriously need to consider
strategies for partnerships, which would involve leveraging the creative
potential of the different actors, allowing them to work on the basis of
both established as well as new roles and responsibilities. That implies
sharing of resources and responsibilities (sharing not shifting risks).
For this to happen there is need to ensure that there is sufficient
mutual respect and trust between partners to enable them to work together.
(The above comments are is entirely personal and do not reflect any
position of the organisations I am affiliated with)
alice
Kai U. Wulff wrote:
> Well,
>
> If you tender the capacity you require in Garissa, we will quote a price and
> commit a deployment of fiber.
>
> 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
> bitange at jambo.co.ke
> Sent: Monday, May 07, 2007 18:10
> To: kai.wulff at kdn.co.ke
> Subject: Re: [kictanet] Day 5 - Statistics on Affordability-
> CCKInternetStudyReport
>
> Dear All,
> Please do not be misled. The Government will never compete with anybody.
> All that is being done is to develop a platform where big and small can
> reasonably compete. I think Kai is confusing Telkom projects and
> Government infrastructure projects. If the private sector indeed wanted
> to do infrastructure projects they will have done so but most private
> sector have to have a business case first. I wonder why Kai did not do
> the Garisa route first before heading to Uganda. Please understand that
> Government has the obligation to provide infrastructure.
>
>
> Regards
>
>
> Bitange Ndemo.
>
>
>
>
>
>
>> 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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>>>
>>>
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>
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>>
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