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

[waudo siganga]

At least, going by the article, the PS is consistent in his time-frame
since he had indicated 2 months ago in this discussion prices would be
down by October and that is what we are waiting for.
But REGULATING PRICES has the neagtive effect of putting off FDIs. And
has someone tried studying our "competition" model to determine why it
is apparently not working in the case of these prices? Are there, for
example, legal loopholes that enable operators to work as cartels?

Waudo

On Tue, 22 Sep 2009 05:23 -0700, "Walubengo J" <jwalu at yahoo.com> wrote:
> 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
> > 
> 
> 
>       
> 
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