[kictanet] ISPs slap Ndemo

Thu Sep 23 16:48:25 EAT 2010

"naomba serikali" or not.government policies ultimately affect demand and
supply laws in any market. While the call here is not to go the Finish way
of making it a right for all citizens to have access to 1Mb of broadband by
2015, or UK's 2Mb, GOK can move to create an environment that will encourage
our good ISPs  lower the current rates, currently  >$500- remember, the
potential bulk users in Kenya earn <$1/day!

Edwin

Sales without Customer Service........is like stuffing money into a pocket
full of holes.
DAVID TOOMA

From: Brian Munyao Longwe [mailto:blongwe at gmail.com] 
Sent: Thursday, September 23, 2010 4:20 PM
To: Edwin Onchari
Cc: KICTAnet ICT Policy Discussions
Subject: Re: [kictanet] ISPs slap Ndemo

Hi all,

Is this another case of "naomba serikali inisaidie" - which is to typical of
us Kenyans....

It is my firm belief that we have a free and open market for internet
services in Kenya - with little or no barriers to entry for any player.
Could it just be that the rules of supply and demand are applying and
thereby preventing the "drastic" drops in pricing that it seems many of use
are dreaming about?

I think Walu is asking the right kinds of questions - how do we adjust the
supply/demand equation to bring about the desired results?

In my honest opinion government has been doing a good job of staying out of
business - let's keep it that way.

Regards,

Brian

On Thu, Sep 23, 2010 at 2:16 PM, Edwin Onchari <eonchari at lynxbits.com>
wrote:

Better yet, GOK should slice up its 40% stake and sell to smaller businesses
that are willing to play ball, so that Kenyans are not at the mercy of a
handful ISPs that cannot get their act together

Edwin

Sales without Customer Service........is like stuffing money into a pocket
full of holes.
DAVID TOOMA

From: kictanet-bounces+eonchari=lynxbits.com at lists.kictanet.or.ke
[mailto:kictanet-bounces+eonchari <mailto:kictanet-bounces%2Beonchari>
=lynxbits.com at lists.kictanet.or.ke] On Behalf Of Harry Hare
Sent: Thursday, September 23, 2010 2:35 PM
To: Edwin

Cc: KICTAnet ICT Policy Discussions

Subject: 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
<http://mc/[email protected]> > > 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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