[kictanet] ISPs slap Ndemo

Fri Sep 24 09:58:11 EAT 2010

Pareto law 80:20 rule when applied to the BPO sector what this means is that 80% 
of your business needs to be local and 20% foreign.

The inverse rule we are using is what makes us uncompetitive, we say power is 
cheap in Egypt but that is not why their exported products are cheaper but 
because 80% of their business is local thus covering their overheads the 20% 
export business is a direct contributor to the bottom line (finance 101).

Your solution is not a dark pipe to import more bandwidth but to develop local 
BPO clients therefore what you will be looking at is local loop connectivity 
which I am told costs $ 60/- for a 2 MB link from KDN.

Regards
Robert Yawe
KAY System Technologies Ltd
Phoenix House, 6th Floor
P O Box 55806 Nairobi, 00200
Kenya

Tel: +254722511225, +254202010696

________________________________
From: Edwin Onchari <eonchari at lynxbits.com>
To: robertyawe at yahoo.co.uk
Cc: KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke>
Sent: Thu, 23 September, 2010 17:42:28
Subject: Re: [kictanet] ISPs slap Ndemo

Lowest I know of is Simbanet at $200 (I am their client now), at least 3 of them 
are at $500 and the rest range from $500-800 (dedicated rates)…hence the cry. 
Now, our Philippines counterparts are in the range of $65-$100 – which is still 
relatively high. I am in the BPO sector, and I can tell you that this has over 
the years played to our disadvantage. If only I can get an empty fiber pipe to 
wherever and buy bandwidth from an international ISP (just wishing).

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 5:22 PM
To: Edwin Onchari
Cc: KICTAnet ICT Policy Discussions
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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-- 
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cell:  + 254 722 518 744
blog : http://zinjlog.blogspot.com
meta-blog: http://mashilingi.blogspot.com
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