[kictanet] ISPs slap Ndemo

Mon Sep 27 00:56:09 EAT 2010

Hey all,

I really dislike the term 'bottom of the pyramid' or 'bottom billion' - I
find those expression quite patronising. How about low-income clients or
something along those lines?

But that's by the by. I actually doubt that the so-called 'bottom billion'
has so drastically different interests than the more middle class
subscribers. I suspect that email/staying in touch, online dating, music and
adult content are just as popular. Being poor doesn't automatically make you
a more virtuous person. Look at people who buy changaa: barely any
disposable income. And yet they'd still spend it on alcohol.

This is the big irony: with internet connectivity, we have a load of
information at our fingertips. But few people actually bother looking it up.
I see the wildest speculation and conspiracy theories on Facebook that would
take to a couple of seconds to clear up with a google search - but people
don't do it. I suspect you must have learned how to ask questions, ask the
right questions, search for information, figure out how to evaluate
information etc. (and yes, I'm generalising here).

Another thought: People already create content for the low-income segment -
it's just delivered through FM stations rather than the internet.

Have a good week,
Andrea

On 26 September 2010 01:22, Muchiri Nyaggah <muchiri at semacraft.com> wrote:

> The Internet is a highway (a super one even) that takes us where we want to
> go. I believe there's a lot of local content online, its just not very
> meaningful for the vast majority living at the bottom of the pyramid.
>  People who are busy trying to put food on the table won't get on the
> highway to go to a place called 'Hot or Not.' It's just not meaningful.  I
> agree with Brian, for-profit enterprises have no reason to drop prices
> unless it becomes necessary for their survival. It will become necessary
> when the current realities of doing business are modified by say, a drop in
> demand for the high-cost Internet they are supplying.
>
> As long we continue focusing on content such as blog posts, YouTube videos
> and entertainment applications, only those with disposable income or time
> will be consuming it. The real fortune for ISPs (like CK Prahalad said) lies
> at the bottom of the pyramid but until we generate content and applications
> that make meaning for the masses, we may have to live with a slow drop in
> prices much longer than we prefer to.
>
> Don't expect ISPs to create the content either. They are in the 'transport'
> business. They are lousy at creating content.
>
>
> Kind regards,
>
>
>
> *Muchiri* Nyaggah
>
> Director
>
> @muchiri
>
> +254 722 506400
>
> Semacraft.com
>
>
>
>
>
>
>
>
>
>
>
>
>
> On Fri, Sep 24, 2010 at 2:36 PM, robert yawe <robertyawe at yahoo.co.uk>wrote:
>
>> Hi,
>>
>> Your current ISP charges you $500 for a 1MB link from your location to his
>> edge router, after that it is called best effort especially since most ISPs
>> do not have bandwidth managers.
>>
>> I will take this seriously and do not back down when I come to you to
>> signup.
>>
>> Regards
>>
>> Robert Yawe
>> KAY System Technologies Ltd
>> Phoenix House, 6th Floor
>> P O Box 55806 Nairobi, 00200
>> Kenya
>>
>> Tel: +254722511225, +254202010696
>>
>>
>> ------------------------------
>> *From:* Agosta Liko <agostal at gmail.com>
>> *To:* robert yawe <robertyawe at yahoo.co.uk>
>> *Cc:* KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke>
>> *Sent:* Fri, 24 September, 2010 10:01:06
>>
>> *Subject:* Re: [kictanet] ISPs slap Ndemo
>>
>> no Robert
>>
>> 1MB for 50USD ... to anywhere ... I dont get limitations from my
>> current providers
>>
>> your thoughts ?
>>
>> On Fri, Sep 24, 2010 at 10:00 AM, robert yawe <robertyawe at yahoo.co.uk>
>> wrote:
>> > Hi,
>> > Fine, so long as it is local loop from your office to your collocation
>> > centre where you will be providing SaaS solutions.
>> > Regards
>> >
>> > Robert Yawe
>> > KAY System Technologies Ltd
>> > Phoenix House, 6th Floor
>> > P O Box 55806 Nairobi, 00200
>> > Kenya
>> >
>> > Tel: +254722511225, +254202010696
>> >
>> > ________________________________
>> > From: Agosta Liko <agostal at gmail.com>
>> > To: robert yawe <robertyawe at yahoo.co.uk>
>> > Cc: KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke>
>> > Sent: Fri, 24 September, 2010 9:50:23
>> > Subject: Re: [kictanet] ISPs slap Ndemo
>> >
>> > 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 <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> > 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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>> >>>
>> >>> Version: 8.5.445 / Virus Database: 271.1.1/3153 - Release Date:
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>> >>> 18:40:00
>> >>>
>> >>> _______________________________________________
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>> >>> This message was sent to: 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
>> >>>
>> >>> No virus found in this incoming message.
>> >>> Checked by AVG - www.avg.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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>>
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