[kictanet] When the Internet consumer market bites back...

aki aki275 at googlemail.com
Tue Mar 23 07:31:00 EAT 2010


Dear Listers,

Sorry for the cross-posting and am adding my opinion.

There is a story in Business Daily today titled " AccessKenya records 31
p.c. drop in profit " . No matter what way you look at the article, the
consumer has spoken.

I believe we are now going to see a turning point for kenya's internet
pricing.  Competition for higher bandwidths at affordable rates is now
starting to kick off. The original idea that was used by ISPs whereby after
Seacom and Teams landed was to double bandwidth at existing prices was not a
good idea and thus must have lead to depressed sales or no new sales. Lack
of sales puts a severe financial stress on ISP companies, especially those
who took up both under-sea fiber connectivity.

In my opinion, I think the market has bitten back! Data Telcos and ISPs are
now going to have to go head to head on competition for newer customers. I
personally welcome back the competition.  :-)
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