[kictanet] Uproar Over Internet Costs in Kenya

[Eric M.K Osiakwan]

Uproar Over Internet Costs in Kenya
The Kenyan Government has accused TEAMS shareholders of colluding to  
fix internet connectivity prices. Information and Communication PS  
Bitange Ndemo said the shareholders are making a massive 2,000 per  
cent from selling their capacity before the cable officially goes  
live. The shareholders have said that they will first have to recoup  
their investment before lowering the Internet connectivity prices.

He said the shareholders should be selling internet connection at  
about $200 per Megabyte (MB) but the companies have held the price at  
about $4,000 just below the current price of satellite. "When we were  
initially setting up TEAMs the issue of recouping investments after it  
had gone live did not feature," Dr Ndemo said.

Some shareholders have confirmed that they are already using the  
signal, but charging at prices of satellite. "The shareholders are  
entitled to pre-sell their capacity although the cable has not yet  
been handed over to TEAMS for commercial operations," said Teams  
chairman, Michael Joseph. He said the official launch will be  
announced on Thursday.

Teams undersea fibre optic cable landed on June 12 and has been since  
undergoing testing. The initial testing report was released on August  
21. Dr Ndemo says some of the shareholders are sabotaging the  
government's bid to increase Internet access in Kenya by delaying the  
launch.

In the cable, the Government of Kenya has a 20 per cent stake,  
Safaricom Limited 22.5 per cent and Telkom Kenya Limited 22.5 per  
cent. Others include Essar Telecom Kenya Ltd, Kenya Data Networks Ltd,  
Wananchi Telecoms, Access Kenya and Jamii Telecommunications Ltd. The  
investors say meaningful price reductions will take up to three years.  
Dr Bitange says the government may be forced to step in and regulate  
internet connectivity charges if the prices will not come down  
significantly in the next one month.
(Source: Daily Nation)
NB: Sorry for crossposting.

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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