[kictanet] ISPs slap Ndemo

[Walubengo J]

Yes WHOLESALE prices are down by 80% but RETAIL prices remain
relatively high.  Are the ISP/Telco eating up the difference by way of
SUPER-PROFITS?



Not sure. There are multiple and intermediary variables that play
between the Wholesale Level and the Retail Level that includes, but not
limited to Cost of Local loops, Usage/Volume Levels,  Local Content,
Regulatory& Competition Environments, Charging Models, etc.


The challenge is to get a way in which to measure and establish
which of the above variables will have the biggest, positive and
sustainable impact on Retail Internet pricing.  Worse still, a "wrong"
distortion of any of the above maybe counterproductive to the others in
the long run. It requires a delicate balance of the whole ecosystem.


But perhaps I could be wrong..



walu.

--- On Thu, 9/23/10, McTim <dogwallah at gmail.com> wrote:

From: McTim <dogwallah at gmail.com>
Subject: Re: [kictanet] ISPs slap Ndemo
To: jwalu at yahoo.com
Cc: "KICTAnet ICT Policy Discussions" <kictanet at lists.kictanet.or.ke>
Date: Thursday, September 23, 2010, 2:28 PM

Hi,

On Thu, Sep 23, 2010 at 11:19 AM, Edwin Onchari <eonchari at lynxbits.com> wrote:
> Yes Dennis,
>
>
>
> Take the case of the US for instance. 1 Mb (dedicated) is going for less
> than $50…

Wholesale cost there is ~$2.50 for 1 Mb/sec

>in Kenya, it’s anything between $500-$800.

Wholesale price in Kenya?  Around 50 USD per Mb/sec  (in Mombasa) is
what I heard recently from an industry player.  That is probably for a
volume purchase of course.


-- 
Cheers,

McTim
"A name indicates what we seek. An address indicates where it is. A
route indicates how we get there."  Jon Postel

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