[kictanet] ISPs slap Ndemo

Fri Sep 24 09:44:39 EAT 2010

Hi,

When we talk about 1 MB for $500/- I believe we are referring to a dedicated 
connection with a contention ratio of 1:1 not shared provided by the ISPs of 
1:∞.  So the ISP buys the 1 MB at $500/- dollars and sells it to 20 subscribers 
at $50/- a culture they developed during the good old days of satellite.

In addition the 1 MB is not from your equipment to the ISP but should be the 
entire route into the Internet.  Exploited we still are and as has been said by 
many the prices have still not come down sufficiently.
 Robert Yawe
KAY System Technologies Ltd
Phoenix House, 6th Floor
P O Box 55806 Nairobi, 00200
Kenya

Tel: +254722511225, +254202010696

________________________________
From: Brian Munyao Longwe <blongwe at gmail.com>
To: robertyawe at yahoo.co.uk
Cc: KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke>
Sent: Thu, 23 September, 2010 17:21:40
Subject: Re: [kictanet] ISPs slap 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=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> > 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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>-- 
>Brian Munyao Longwe
>e-mail: blongwe at gmail.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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