[kictanet] ISPs slap Ndemo-meanwhile TKL-Orange Slashes Internet Prices by 50%..

Fri Sep 24 10:59:22 EAT 2010

Liko,

you should be TKLs customer - in todays Nation Advert, they say they have slashed their MOBILE internet retail rates by more than half.  Picture this:- 400MB download ceiling @ 450Ksh(5$)  compared to Safaricom for 400MB at 1000Ksh (12$).

It appears TKL has no sympathisers on this list since I thought this should have been "breaking news".  Or maybe users are just  wiser and suspect the contention ratios (Quality) upstream may just be extremely unacceptable..

At a National level, it would be interesting to confirm if the slashed prices did significantly increase No of Internet users in the country...my bet is that it wont. Instead what might happen is that the same 4million .KE internet users will just be shuffling between the Operators(looking for a bargain). 

My hypothesis is that Local Content is perhaps the biggest driver/variable that can increase the no of Internet Users in the country and eventually provide sustainable lower internet rates. Lower rates without significant Local Content is like telling me the cost of going to "Kacheliba" (no offense to our beloved Minister) has just been cut down by half - and so those who had not been going there(not been online) should suddenly start getting there (and do what?)...

walu.
btw: meanwhile, anybody subscribe to this new TKL rate to share their experiences before we all cross over to TKL?

--- On Fri, 9/24/10, Agosta Liko <agostal at gmail.com> wrote:

From: Agosta Liko <agostal 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: Friday, September 24, 2010, 10:50 AM

Robert

Si you start an ISP ? ... with 1:1 @ USD50 per MB ... I will be a customer

Just thinking

On Fri, Sep 24, 2010 at 9:44 AM, robert yawe <robertyawe at yahoo.co.uk> wrote:
> 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.
>>
>> African eDevelopment Resource Centre
>> eDevelopment House  : :  604 Limuru Road
>> Old Muthaiga  : : P O Box 49475 00100
>> Nairobi : : Kenya
>> T +254 20 3741646/7 : :  C +254 725 650044
>>
>> Training :  : Research:  :Consultancy:  : Publishing
>>
>> No virus found in this incoming message.
>>
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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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