[kictanet] {Disarmed} Re: ISPs slap Ndemo

Thu Sep 23 23:29:01 EAT 2010

Dear lusters,
The price of 1MB in Kenya range from Ksh.1,450 to Ksh. 36,000.  To realign
this kind of range requires consumer power.  In a liberalized economy the
Government cannot be the one telling you who your vendor should be.  In
other countries consumers flock on to the cheapest offer forcing the
competitors to react.  I have seen Kenyans purchase more expensive fuel
when they could pay cheaper across the road.  Similarly, in broadband
Kenyans want the price to be reduced where they started their Internet
life.  This our uniqueness or peculiarities.  Consumers have power and let
us use it effectively.

Ndemo.

> I'm sorry to sound like a broken record but I don't know any ISP in Kenya
> selling 1Mb for >$500 - and anybody who is being extorted like this should
> go to a reputable ISP and get their service for tens of dollars, not
> hundreds....
>
> Brian
>
> On Thu, Sep 23, 2010 at 3:48 PM, Edwin Onchari
> <eonchari at lynxbits.com>wrote:
>
>>  “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 <kictanet-bounces%2Beonchari>=lynxbits.com@
>> 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/compose?to=eonchari@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.
>>
>>
>> *African eDevelopment Resource Centre
>> *eDevelopment House  : :  604 Limuru Road
>> Old Muthaiga  : : P O Box 49475 00100
>> Nairobi : : Kenya
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>>
>> --
>> Brian Munyao Longwe
>> e-mail: blongwe at gmail.com
>> cell:  + 254 722 518 744
>> blog : http://zinjlog.blogspot.com
>> meta-blog: http://mashilingi.blogspot.com
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>
>
>
> --
> Brian Munyao Longwe
> e-mail: blongwe at gmail.com
> cell:  + 254 722 518 744
> blog : http://zinjlog.blogspot.com
> meta-blog: http://mashilingi.blogspot.com
>
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