[kictanet] the long fibre lie...Regulatory Action limited.

waudo siganga emailsignet at mailcan.com
Tue Aug 18 12:28:27 EAT 2009


Hi Warigia - First sorry for missing ur big day due to some other
commitment I had. I do not believe governments or governmental
agencies should set consumer prices on anything. That is the work
of market forces through competition. What governments need to do
is ensure an environment that fosters competition. The example of
ATT is from the old days when ATT was a monopoly operator. It
reminds me of the 1998 Kenya Communications Act that gave
monopoly status to Telkom Kenya in provision of some services
such as landlines in Nairobi and international telephony. The
mistaken rationale was that Telkom would rake in some "super
profits" which would in turn be utilised in universal access
provision. Needless to say those objectives were never attained.
All along we prodded the Government to free the market through
competition and private sector investment. When this happend as
in the case of the mobile telephony sector the results in terms
of better and more afrordable services were quick to manifest.
Our argument in the case of universal access was that it was
better for the Government to allow freedom in the market and then
use fiscal instruments to raise funds from the IMPROVED, EXPANDED
and CHEAPER  services. This is being done today through a
10% excise tax on airtime and, believe me, most users do not even
notice it.

With the marine fibre I noticed what looked like cross-ownership
and cross-interest in the different ventures and maybe that can
have an effect on the competitive environment necessary to bring
prices down significantly.

Kind Regards,
Waudo


On Tue, 18 Aug 2009 11:21 +0300, "warigia bowman"
<warigia at gmail.com> wrote:

  Dear Brian



Do you believe that ISPs in Kenya are sufficiently competitive to
keep prices fair? I am just asking. I really do not know.



What about the concern people have expressed that KDN has dropped
prices dramatically to ISPs, but consumers are not seeing the
benefit.



By the way, it is WONDERFUL to hear from you!



Rigia
On Tue, Aug 18, 2009 at 11:18 AM, Brian Munyao Longwe
<[1]blongwe at gmail.com> wrote:

  Good point Warigia and the same applies here - CCK can and
  have exercised their authority to regulate voice pricing -
  this is especially true when there is either a monopoly or an
  operator with significant market share.
  The same does not apply to market sectors like Internet
  services because there is full competition and never any
  player with significant market share. In the USA - FCC have
  never regulated Internet or bandwidth pricing as market forces
  generally accomplish this.
  Best regards,
  Brian


On Tue, Aug 18, 2009 at 11:11 AM, warigia bowman
<[2]warigia at gmail.com> wrote:


Dear colleagues

Rates of operators can and have been regulated, In fact, in the
United States we had something called rate of return regulation
when ATT was a monopoly. They were allowed to charge a high rate,
but in exchange, they had to ensure every tiny village of even
200 had phone service. Why can't our operators do that?

Sincerely, Warigia
On Mon, Aug 17, 2009 at 8:40 AM, Walubengo J <[3]jwalu at yahoo.com>
wrote:


Alex,
Your have rightly qaulified your solution - as simple.  Indeed it
is. Infact too simplistic to fly.  The idea that the Regulator
can reign in Operators who charge "high" internet rates cannot
and will not work.  Think about the in-famous SAT3 fiber link on
the west coast of africa.  Ask yourself why the Regulators in
Nigeria, Ghana, Cameroon, Angola, S-Africa etc have never
stepped in and revoked licensces of operators over the last 15yrs
of high internet costs offered on the fiber...
The answers are very complex...I will actually be discussing
these limitations and available interventions in some upcoming
ICT conference at Strath University in Sept 09 and I dont want to
pre-empt ;-)....
walu.
--- On Fri, 8/14/09, Gakuru Alex <[4]alexgakuru.lists at gmail.com>
wrote:
> From: Gakuru Alex <[5]alexgakuru.lists at gmail.com>
> Subject: Re: [Skunkworks] Fwd: the long fibre lie... Ndemo
should resign if internet prices do not drop as he promised!!
> To: "Skunkworks forum" <[6]skunkworks at lists.my.co.ke>
> Date: Friday, August 14, 2009, 8:44 PM
> On Fri, Aug 14, 2009 at 7:38 PM,
> David Kiania | Asentric Consulting
> Ltd<[7]kianiadee at gmail.com>
> wrote:
> >
> > Set the precedence what's your  solution? Am sure if
> you did we'd have
> > heard it by now. This thread is a knee jerk reaction
> to a bad internet
> > day, we all have one.
> >
>
> Simple, the entity under Ndemo's docket that grants these
> cowboy
> operators licenses puts it's foot down and warn that I may
> revoke
> licenses for operators that charge waaaay up in the sky not
> just above
> cost but ABOVE acceptable international pricing benchmarks.
> They've
> all the data they need. Imagine, for example, Safaricom on
> the verge
> of losing their license, price drops, drops, drops, drops,
> drops, and
> drops..... across board.
>
> Would this be acceptable to you?
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--
Dr. Warigia Bowman
Assistant Professor
The Department of Public Policy Leadership
The University of Mississippi
107 Odom Hall
University, MS 38677
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--
Brian Munyao Longwe
e-mail: [24]blongwe at gmail.com
cell:  + 254 722 518 744
blog : [25]http://zinjlog.blogspot.com
meta-blog: [26]http://mashilingi.blogspot.com

--
Dr. Warigia Bowman
Assistant Professor
The Department of Public Policy Leadership
The University of Mississippi
107 Odom Hall
University, MS 38677
URL: [27]http://www.olemiss.edu/depts/leadership/index.html
PHONE: 662-915-1904
EMAIL: [28]mwbowman at olemiss.edu

References

1. mailto:blongwe at gmail.com
2. mailto:warigia at gmail.com
3. mailto:jwalu at yahoo.com
4. mailto:alexgakuru.lists at gmail.com
5. mailto:alexgakuru.lists at gmail.com
6. mailto:skunkworks at lists.my.co.ke
7. mailto:kianiadee at gmail.com
8. mailto:Skunkworks at lists.my.co.ke
9. http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks
  10. http://my.co.ke/
  11. http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks-announce
  12. http://lists.my.co.ke/cgi-bin/mailman/listinfo/science
  13. http://lists.my.co.ke/cgi-bin/mailman/admin/kazi/general
  14. mailto:kictanet at lists.kictanet.or.ke
  15. http://lists.kictanet.or.ke/mailman/listinfo/kictanet
  16. mailto:warigia at gmail.com
  17. http://lists.kictanet.or.ke/mailman/options/kictanet/warigia%40gmail.com
  18. http://www.olemiss.edu/depts/leadership/index.html
  19. mailto:mwbowman at olemiss.edu
  20. mailto:kictanet at lists.kictanet.or.ke
  21. http://lists.kictanet.or.ke/mailman/listinfo/kictanet
  22. mailto:blongwe at gmail.com
  23. http://lists.kictanet.or.ke/mailman/options/kictanet/blongwe%40gmail.com
  24. mailto:blongwe at gmail.com
  25. http://zinjlog.blogspot.com/
  26. http://mashilingi.blogspot.com/
  27. http://www.olemiss.edu/depts/leadership/index.html
  28. mailto:mwbowman at olemiss.edu
 

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