[kictanet] Day 5 - Statistics on Affordability- CCKInternetStudyReport
Michael Joseph
MJoseph at Safaricom.co.ke
Fri May 11 10:56:27 EAT 2007
It is worth noting at this junction that pricing is not the only factor
but service delivery, reliability, availability and, in general,
industry standard SLAs that will encourage operators to lease more
capacity.
As operators we will need more and more transmission capacity both
within and outside the country and therefore are looking seriously at
all the various proposals that are on the table. Therefore we are
looking forward to reviewing the detailed plans for the Regional Fiber
Optic network, including dates or termination points, pricing etc so
that we may plan accordingly.
Michael
CEO
Safaricom Limited
-----Original Message-----
From: kictanet-bounces+mjoseph=safaricom.co.ke at kictanet.or.ke
[mailto:kictanet-bounces+mjoseph=safaricom.co.ke at kictanet.or.ke] On
Behalf Of bitange at jambo.co.ke
Sent: Friday, May 11, 2007 9:09 AM
To: Michael Joseph
Subject: Re: [kictanet] Day 5 - Statistics on Affordability-
CCKInternetStudyReport
Florence,
AfDB is locked into EASSy and has left other DFIs to finance Terrestrial
networks. You are very right on the Government's involvement. This is
the model that was followed by Sweden and as Alice noted, Malaysia. To
be
honest the private sector in ICT sector has not lived up to the
expectations. Check Mombasa Nairobi Fibre link where the prices are
still
over the roof yet there are two players there. Does anyone need reason
why we need to have more players running on the Government built
network?
Our private sector must embrace low prices but high volume concept.
Think
of the idle capacity that lay on the route yet there is business.
Regards
Bitange Ndemo.
> Looks like we are looking to issues around the last mile for which a
whole
> mesh of possibilities, actors and services must be considered, planned
for
> and provided. If monopolies continue, forget lower prices and
> affordability!
> The governemnt is right in looking to provide the super highway and
so it
> ought. And in doing so it is in its purview to take any loans from any
> development banks that it can get and at reasonably low interest
rates. My
> only concern is that the AfDB is nowhere in sight or is it? With such
high
> ROI on th continent from ICT investments as I am told where is the
AfDB
> playing? Some one pls tell me or indeed the national dev banks? Are
they
> any to speak of?
>
> O just for news; the Nigerian ICT community is celebrating the hand
over
> of managemnt of the top level domain name .ng to nigerians!
>
> Cheers from hot and humid Lagos,
> FE
>
>
> ----- Original Message ----
> From: alice <alice at apc.org>
> To: feanywhere at yahoo.co.uk
> Sent: Monday, 7 May, 2007 11:08:31 AM
> Subject: Re: [kictanet] Day 5 - Statistics on Affordability-
> CCKInternetStudyReport
>
>
> 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.
>>>> >
>>>> >
>>>> >
>>>> >
>>>> >
>>>> > _______________________________________________
>>>> > kictanet mailing list
>>>> > kictanet at kictanet.or.ke
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>>>> >
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>>>>
>>>>
>>>> _______________________________________________
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>>>>
>>
http://kictanet.or.ke/mailman/options/kictanet/rebeccawanjiku%40yahoo.co
m
>>
>>>> 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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>>>
>>>> new cars at Yahoo! Autos.
>>>> --------------------
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