[kictanet] NCA Board member gives its price target as an E1 for US$100-500

[kai wulff]

Eric,

 

This is exactly the type of statement that is dangerous. It is a little bit
like deflation .

 

Because everybody expect cheaper prices nobody moves .. And because of this,
uptake is below the potential, usage of the cable is sub optimal and prices
don't come down . Result: People will wait longer ..

 

I still don't understand why we are so set on the E1 price (actually we
should talk about 2M duplex and not old school) for a BPO .. Quality is what
matters ..

 

With a good quality compression you can push more than 256 calls at any
given time. So in an 8 hour shift you could have 122880 call minutes with
256 agents .. Assume 70% load, this makes 86016 minutes. Surely, you will
have to terminate them into a network. Assume 0.02USD per minute.

 

So my question: What is your staff cost? Let's argue 700KSH per day and
person? Electricity? KSH 20 per day and person? Rent KSH 50 per day and
person (assuming you work 2 shifts, 7 days a week).

 

Add software, overheads ...

 

So now, what is the cost of communication?

 

Currently an E1 in Kenya costs 1200 USD (not using the free offer) list
price. So we said 2 shifts, 30 days, 70% load ..

 

5160960 call minutes a month

 

That makes 0,0174 KSH per minute (took a rate of 75 to the USD) for the
submarine portion!

We add KSH 2 for termination = 2,0174 KSH communications per minute

 

Salaries: 1,45 KSH per minute (and this includes the idle ones or KSH 2,08
per minute at 70%

 

You see the contribution of the pure Submarine portion .. It is NEXT TO
NOTHING.

 

Any comments?

 

Kai

 

 

 

 

 

Von: kictanet-bounces+kai.wulff=kdn.co.ke at lists.kictanet.or.ke
[mailto:kictanet-bounces+kai.wulff=kdn.co.ke at lists.kictanet.or.ke] Im
Auftrag von Eric M.K Osiakwan
Gesendet: Sunday, November 29, 2009 20:35
An: kai.wulff at kdn.co.ke
Cc: KICTAnet ICT Policy Discussions
Betreff: [kictanet] NCA Board member gives its price target as an E1 for
US$100-500

 

A two day workshop called "Fiber Optic Undersea (Submarine) cable", in
collaboration with  <http://98.130.227.12/> West Africa Telecommunications
Regulators Assembly (WATRA), the  <http://www.gtz.de/en/> German Technical
Group (GTZ) and also the  <http://www.nca.org.gh/> National Communications
Authority (NCA) at the La Palm Royal Hotel.

The workshop offered  <http://98.130.227.12/> WATRA members the guidance
regarding the regulation of access to new undersea cables and also come up
with adoptable guidelines for issuance of undersea cable licenses and
landing rights agreement. This would ensure the transparency in deployment
and pricing of undersea cables.

A Member of the Board of Directors of  <http://www.nca.org.gh/> NCA, Solomon
Quandzie has observed that the availability of international bandwidth,
coupled with NCA's plans for licensing additional terrestrial fiber optic
cables systems, and also wireless broadband access (through things like
WiMAX) operators would finally set the deployment of broadband networks
throughout the country and further lay the foundation for rapid economic
growth in the ICT sector.

He said, application of Business Process Outsourcing (BPOs) and Government's
decentralization program would enhance various e-government packages which
would increase the social-economic development of the citizenry in a manner
never witnessed in this country over the past several years.

Quandzie said that the NCA is committed to opening up the market base of the
telecommunication industry by offering an additional fiber optic cable
operator (WACS), which would add more capacity to the existing one, all
within a 24 month period.

According to Quandzie, the current SAT 3 cable systems provides an estimated
three gigabytes capacity of international bandwidth to the country at approx
systems to become operational, adding that "They will be adding
respectively, for a total of 1,920 gigabytes or 640 fold increase to the
current capacity of international bandwidth in the country".

Quandzie said that NCA expectation of a supply bandwidth a price goal of
$100-500 per E1 should be possible within the very near future which would
provide the necessary framework for the attainment of such an outcome.

He concluded that with the right regulatory framework established, reliable
and affordable broadband networks, coupled with low cost of available
international bandwidth can be provided through undersea fiber optic cables.
(Source: The Ghanaian Chronicle)

 

 

Eric M.K Osiakwan

Director 

Internet Research

www.internetresearch.com.gh

emko at internetresearch.com.gh

42 Ring Road Central, Accra-North

Tel: +233.21.258800 ext 7031

Fax: +233.21.258811

Cell: +233.24.4386792

 






 

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