[kictanet] TEAMS and Open ended circuit

[aki]

Hello Walu, ( my amatuer opinion below )

>From the answer that Kai gave on the pricing of the bandwidth by Data
Network operators, it is clear that uptake of the bandwidth is the main
issue, and further reductions are dependent on it. Considering that
currently Sat costs are about USD4000 per Megabit and via Fiber USD600-400
per Megabit, the initial primary impact has already been felt. For anyone
who really wants cheaper Internet Access compared to July 2009, its there
and available.

However, I'm tempted to slightly blame the Network operators for not making
their case strong to the public through media etc. End users do not
understand that if the Seacom/Teams bandwidth was offered as a shared
service, as is the case by many ISPs who repackaged and call
them Corporate/Business packages, the real costs drops are already here.

A simple example:

*Up to July 2009 : No Fiber, Entire country is on Satellite Internet*

1Mbit = 4000USD per Month.
Shared Internet sold to clients on a monthly basis = *1340USD per* *month *

(3 Clients Share this service and ISP bundles them as packages and call it
the 1Mbit Broadband Service. Though the services is labelled as 1Mbit, it is
a shared service.)

*August 2009 onwards : Fiber in country*

1Mbit = 600USD per month
Shared internet sold to clients on monthly basis = *200USD per month*

 (3 Clients Share this service and ISP bundles them as packages and call it
the 1Mbit Broadband Service. Though the services is labelled as 1Mbit, it is
a shared service.)

As can be seen, the drastic price drops that could have taken place.

I'll add more to the discussion a bit later.

With Rgds.

Aki


On Fri, Oct 9, 2009 at 10:37 AM, Walubengo J <jwalu at yahoo.com> wrote:

>   Kai,
>
> thanx a million for willing to share the maths with regard to the Tier 1
> (International) Internet Backbone Providers.
>
> Aki,
>
> I shall await to see the maths with regard to estimated costs for retailing
> this bandwidth locally.  Obviously it would have been more authoritative if
> the figures came from one of the players...wananchi? accesskenya? zain?
> safcom? Remember the bigger % of the internet costs for developing economies
> are often incurred at the local loop...factor of size, usage, reach,
> content, etc of the domestic networks.
>
> walu.
>
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