[kictanet] ISPs slap Ndemo

Mon Sep 27 02:20:45 EAT 2010

Hi Andrea. You may be right, their interests may not be drastically
different from those a bit more flush with cash or unbothered by the lack of
it. It may be Chivas for one but Chang'aa for another. At the end of the day
it's alcohol for both of them. However, to be meaningful to the lower income
individual, the alcohol would have to be delivered differently. Content that
seeks to empower me will mostly be delivered in the format that works for
the devices I am accustomed to. For my friend who is bootstrapping to start
a car repair shop, his cellphone is everything to him.  To empower him,
content on the subject needs to be delivered in a format that works for HIS
device.

If FM radio has the kind of content that results in high levels of audience
engagement, how can it be ported onto the Internet? If sales of FM radio
phones have gone up because of the conversations happening on that space,
won't sales of data enabled phones go up because meaningful conversations
are happening online? More people taking up bandwidth may result in better
economies of scale for network operators and lower costs for consumers (in
my own little utopia at least) due to better headroom for competition.
Better pricing would keep the government from entertaining populist ideas
like price controls for bandwidth because supply and demand would have been
modified to the customer's benefit.

Little content, few subscribers, high prices. Let's make the Internet a
place where [many] people want to go.

Kind regards,

*Muchiri* Nyaggah

Director

@muchiri

+254 722 506400

Semacraft.com

On Mon, Sep 27, 2010 at 12:56 AM, Andrea Bohnstedt <
andrea.bohnstedt at ratio-magazine.com> wrote:

> 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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>>> >>>
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>>> >>>
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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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>>> >>> 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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>>
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>
>
> --
> Andrea Bohnstedt
> Publisher
> +254 720 960 322
> www.ratio-magazine.com
>
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