[kictanet] [ke-internetusers] Internet charges to be regulated

[Walubengo J]

interesting...i missed the opening ceremony of the Fiber summit this morning but I would have loved to ask the good PS, Dr. Ndemo how the internet (price) regulation could be implemented...If successfully executed, it will definitely be a 1st globally...

walu.


--- On Tue, 9/22/09, Alex Gakuru <gakuru at gmail.com> wrote:

> From: Alex Gakuru <gakuru at gmail.com>
> Subject: [ke-internetusers] Internet charges to be regulated
> To: "ke-users" <ke-internetusers at bdix.net>
> Date: Tuesday, September 22, 2009, 3:59 PM
> BY Evelyne Njoroge
> Updated 20 minutes ago
> 
> NAIROBI, Kenya, Sept 22- The government has warned that it
> would be
> forced to step in and regulate internet connectivity
> charges if the
> prices will not come down significantly in the next one
> month.
> 
> Information Permanent Secretary Dr Bitange Ndemo said on
> Tuesday that
> Internet Service Providers (ISPs) were still making obscene
> profits
> from the high cost of bandwidth despite the
> operationalisation of the
> fibre optic cables.
> 
> “They are being mischievous. We have been talking about
> $6000 per
> Megabyte, telling us that they are lowering to $600 which
> from our
> calculation their payback would be in less than six months
> that is not
> what we want,” he stressed.
> 
> It was widely believed that with the coming live of the
> SEACOM and The
> East African Marine System (TEAMS) cable, the cost of
> bandwidth would
> come down significantly but this has not happened.
> 
> The cost of one megabyte of bandwidth locally has been
> going for
> between Sh298, 000 and Sh445, 000 ($4000-$6000) until
> recently when
> the fibre optic cables landed.
> 
> Many ISPs say they have reduced this to Sh45, 000 ($600)
> but the
> government wants this lowered to Sh15, 000 ($200).
> 
> “We have many options but it’s always good to leave the
> competition to
> push the pricing down, but it doesn’t the regulator
> (Communication
> Commission of Kenya), would step in,” the PS emphasised.
> 
> He said the argument that the providers have increased
> capacity for
> the same pricing is not valid since majority of Kenyans
> cannot access
> affordable and after internet connectivity.
> 
> “That is nonsense. If Kenyans are not able to afford,
> then I’m not
> happy because for me to ensure that the economy grows it is
> to make
> broadband available to Kenyans. But now it cannot be used,
> not many
> people have this in their homes,” he complained.
> 
> The providers have been accused of behaving like a cartel
> but they
> have defended themselves arguing that they need to recoup
> their
> investments which have been dependent expensive satellite
> links.
> ...
> http://www.capitalfm.co.ke/business/Kenyabusiness/Internet-charges-to-be-regulated-3071.html>
> 
> _______________________________________________
> ke-internetusers mailing list
> ke-internetusers at bdix.net
> http://www.bdix.net/mailman/listinfo/ke-internetusers
>