[kictanet] ISPs slap Ndemo-crack the whip?

[Walubengo J]

Harry,

I hate sounding like a Telco/ISP Operator, but if you read my earlier posts, this "Ndemo crack the whip" call is really what needs to be investigated.  

As I posted earlier, there are multiple, interrelated variables in this "Internet Pricing Model".  If a whip must be cracked (and perhaps it should), it must be well measured(how many strokes), informed (what is the expected impact), targeted (who is to be hit, Regulator, Operator, Content Providers, Users?) and timed (at what point/condition do you crack the whip).

walu.


--- On Thu, 9/23/10, Harry Hare <harry at africanedevelopment.org> wrote:

From: Harry Hare <harry at africanedevelopment.org>
Subject: Re: [kictanet] ISPs slap Ndemo
To: "Walubengo J" <jwalu at yahoo.com>
Cc: "KICTAnet ICT Policy Discussions" <kictanet at lists.kictanet.or.ke>
Date: Thursday, September 23, 2010, 3:34 PM



Re: [kictanet] ISPs slap Ndemo
Hello All,



Who in this forum thought it possible to enjoy the new calling rates which are 50% of what we used to pay? My point, we need a disruptive force that will force the ISPs to lower their rates. The Government still hold 40% of TEAMS, and I remember the PS once saying that he will use this if the operators fail to drop their costs. Probably this is the time...this, together with NOFBI, the ministry has capacity to roll out a project like - “free internet for all”, another first from Kenya.  



Think about it.



Harry



On 9/23/10 2:14 PM, "Walubengo J" <jwalu at yahoo.com> wrote:



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 </mc/compose?to=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.





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