[kictanet] TEAMS and Open ended circuit

aki aki275 at googlemail.com
Fri Oct 9 12:13:40 EAT 2009


Dear Ps Ndemo,

Thank you for the corrections on pricing and I'm glad that my earlier
assessment as a non-stake holder  estimated Teams bandwidth costs ( I
arrived to 60USD / Mbit ) was not far from the facts as you have clarified .

Asante sana

Rgds,

Aki.

A general comment - corrections are welcome: It seems there are 2 issues,
one is the core bandwidth pricing as mentioned and the other resale through
ISPs. I think ISPs pose a serious problem to future uptake as they, I'm
told, have only in some cases doubled the bandwidth to clients on the same
price structure that they were charging before. If this is true,  then the
example I listed is as follows :

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 should
be the current price*

(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 : Is this what is happening in the ISP market
currently ?*

2Mbit = 1200USD per month
Shared internet sold to clients on monthly basis = *1340USD per month ( Same
price as before but the real price should be 400USD per month )*

(3 Clients Share this service and ISP bundles them as packages and call it
the 2Mbit Broadband Service. Though the services is labelled as 2Mbit, it is
a shared service.)
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