[kictanet] TEAMS and Open ended circuit

[bitange at jambo.co.ke]

Walubengo,
The cost has indeed come down to 600 dollars.  The bone of contetion is how far down should it come to?  Government wants it as low as 100 dollars and at worst 200 dollars.  This is possible if the operators promote new business to supply more bandwidth.  In order to retain their revnue levels, they must introduce new solutions and capture the bent up demand.

They cannot expect revenue to improve with old tactics.  I will expound on this more in any article I am working on.  It is unfortunate that even techies are confused on this subject.  The cross connect in Fuajaira is as low as 15 dollars per MB or 3000 per STM1.  It should not be a problem at all.  Onward capacity to all destnations of the world starts from as low as 50 dollars.

Therefore the cost for a full duplex should not be more than 100.  The payback period for the capex between Mombasa and Fujaira should be at least 5 years to attain the prices we are hoping to get.

Ndemo.
Sent from my BlackBerry®

-----Original Message-----
From: Walubengo J <jwalu at yahoo.com>
Date: Thu, 8 Oct 2009 05:21:08 
To: <bitange at jambo.co.ke>
Cc: KICTAnet ICT Policy Discussions<kictanet at lists.kictanet.or.ke>
Subject: Re: [kictanet] TEAMS and Open ended circuit

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