[kictanet] Internet to the Home

[robert yawe]

Hi,

Fibre to the home will not be cost effective until the providers can resolve the 
revenue model for the hyped TriblePlay offerings.  Installing fibre to the home 
today is similar to lobbying the government to run a dual carriage road to every 
house.  

Fibre cable is not expensive the cost is in the termination equipment which 
makes roll out expensive both to the provider and consumer, a basic multimode to 
UTP transceiver costs upwards of Kes.15,000/- and termination of the fibre 
utilising pre-spliced splitters is about 5,000/- per node yet a DSL modem will 
cost less than 5,000/- and terminating the copper about 1,500/-.

What you need is fibre to the estate and then implement standard copper to the 
house using DSL technology to the client which requires cheaper equipment.  

The providers have concentrated their efforts in the so called 
affluent neighborhoods, wait until Dr. Mwangi goes into data provision, the 
misguided assumption is that such residents have the required disposable income 
to pay the high rates.  I say misguided because a few years ago we setup a 
wireless internet solution in Runda hoping to get at least a 20% penetration, we 
only got 15 subscribers.

I have tried to convince the providers to stop the outdated model of renting 
ports on equipment and instead provide a node and allow resellers to deal with 
the retail end of the business, I spent 3 months trying to explain such a 
reseller model to KDN but to you avail, a prophet is never/rarely recognized in 
his home town/village.  I even went as far as posting the proposal on this forum 
for any other provider to take and run with but again to no avail.

The data providers need to hire someone from the fast moving consumer goods 
(FMCG) industry to develop their distribution model, only then will we be able 
to optimally utilise the fibre infrastructure, can you imagine KBL trying to run 
bars.

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


Tel: +254722511225, +254202010696




________________________________
From: Muchiri Nyaggah <muchiri at semacraft.com>
To: robertyawe at yahoo.co.uk
Cc: KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke>
Sent: Fri, 11 February, 2011 15:37:35
Subject: Re: [kictanet] Internet to the Home

Hi Edith,

I am on Zuku at home. It works for me. I have come across a few people quite 
happy with Zuku on fibre in the Kileleshwa area. Access at Home I hear is also 
pretty good.


I have heard operators mention a few times how expensive it is to plug customers 
onto fibre. I would be interested in hearing what other challenges they are 
facing and how many of those are simply lack of creative thinking as opposed to 
an unfriendly operating environment (regulator, legislative or otherwise).



Kind regards,
 
Muchiri Nyaggah
Director
@muchiri
+254 722 506400
Semacraft.com
    

 
 




On Fri, Feb 11, 2011 at 3:21 PM, Edith Adera <eadera at idrc.or.ke> wrote:

Listers,
> 
>Just wanted to share an observation that despite the hype that fibre had arrived 
>on the Kenyan coast, it seems to be taking long for Broadband to arrive in 
>residential homes! I see cable installation everywhere, but I have not come 
>across a provider aggressively advertising to Kenyans for broadband to the 
>homes. Am I living in my own world?
> 
>Anyone has an idea of a reliable provider with clean bandwidth to homes (not the 
>“bamba” type connections)
> Edith
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