[kictanet] Bringing down the cost of Internet

Thu Oct 10 10:10:52 EAT 2013

It's also important to recognize the need for affordable Internet by
businesses and organizations.

ISPs charge many times more to connect to an office building than to a
residential address (presuming they're both near a POP).  To some degree,
this kind of price discrimination is sensible, but in Kenya, it's simply
too aggressive and hinders growth.

-Adam

--
Kili.io - OpenStack for Africa: kili.io
Musings: twitter.com/varud <https://twitter.com/varud>
About Adam: www.linkedin.com/in/adamcnelson

On Thu, Oct 10, 2013 at 9:18 AM, Muriuki Mureithi <
muriukimureithi9 at gmail.com> wrote:

> Congratulations Dr Ndemo for the  appointment as the Honorary Chair in A4AI
> . I have worked with Sonia in the past and the two of you make a formidable
> team  to fight a formidable battle for humanity . thanks also for driving
> change from  where Sir Tim Bernard-lee started off .The battle lines as
> expressed in the write up are very clear
>
> I only have one  problem with your strategy -- that build they will come
>  as
> a strategy need to be re-jigged. As an example, in all countries in Africa,
> the signal coverage 2G/3G etc is  30-40% more  than penetration , the same
> case for fibre - there are more homes 'passed' than connected . Cost is not
> the only factor  affecting use,  indeed empirical research for the
> communities  that can afford the challenge is use value. Content,
> applications  and dynamics of the demand side are  very important . I would
> like to understand A4AI is incorporating demand side component in its
> strategy . The consumer should not be a passive  bystander in your strategy
>
> Cheers
> MM
>
>
>
> -----Original Message-----
> From: kictanet
> [mailto:kictanet-bounces+muriukimureithi9=gmail.com at lists.kictanet.or.ke]
> On
> Behalf Of Bitange Ndemo
> Sent: 09 October 2013 20:21
> To: muriukimureithi9 at gmail.com
> Cc: KICTAnet ICT Policy Discussions
> Subject: Re: [kictanet] Bringing down the cost of Internet
>
> Listers,
>
> I am in Nigeria for the launch of the Global Alliance for Affordable
> Internet (A4AI) which I was appointed the Honorary Chair.  This is a
> diverse
> and truly global coalition committed to driving down the cost of internet
> access in less developed countries. We believe that, while technological
> solutions are advancing rapidly, policy and regulations remain a
> significant
> barrier to affordable internet. A4AI seeks to create the conditions for
> open, competitive and innovative broadband markets through a combination of
> advocacy, research and knowledge-sharing. When we succeed, we will help to
> lower access costs to meet the UN Broadband Commission target of broadband
> access priced at less than 5% of monthly income, thereby helping billions
> more to come online and unlocking significant socio-economic benefits.
>
> Why is A4AI needed?
> "Estimates suggest that as much as two-thirds of the world's population is
> not connected to the internet, with penetration rates in less developed
> countries averaging around 31%. In Africa, this figure drops to 16% (while
> in in Kenya we are approaching 40% Liberia is at .5%) and in the world's
> 49 least developed countries, over 90% of people are not online. (Source:
> ITU 2013) and (Broadband Commission 2013)
>
>  "Most often, this is for affordability reasons. In developed nations, the
> average cost of broadband internet access is around 1-2% of monthly
> household income - less than a daily coffee. In less developed countries,
> this figure skyrockets to over 30%, and in 17 countries a basic internet
> connection can cost well over 100% of average monthly income. Overcoming
> this digital divide is critical so that technology and innovation can be
> harnessed to accelerate progress in areas such as education, food security,
> job creation, public health, and gender equity."
>
> On A4AI's goals:
>
> "Our primary focus is to reach the UN Broadband Commission Broadband Target
> of entry-level broadband services priced at less than 5% of average monthly
> income. In doing so, we hope to enable billions of people to come online
> (with a particular focus on low-income countries) and make universal access
> a reality.
> On Strategy:
>
> "Innovative technological solutions to affordability challenges are
> progressing apace. However, the best technologies in the world can't drive
> change if quasi-monopolies or regressive policies prevent them from being
> implemented. Changes to policy can deliver impressive results, fast. So,
> through a combination of advocacy, research and knowledge-sharing, A4AI
> will
> drive policy change by seeking to create the conditions for open,
> competitive and innovative broadband markets. We are unique in pursuing
> this
> approach."
>
> On Specific Activities:
>
> "A4AI is focused on creating conditions for open, competitive and
> innovative
> broadband markets via regulatory and policy change. Activities
> include: original research (including the publication of an annual
> Affordability Report); publication of regulation and policy best practices,
> and illustrating these via case studies; and in-country engagements
> including networking and knowledge-sharing. We will work closely with
> national governments - three to four countries in year one, expanding to 10
> - 12 in years two and three."
>
> How are policies keeping prices high?
>
> There are numerous examples of how policies keep prices high. Here are just
> a handful:
> . Luxury taxes: Tax accounts for more than 20% of the total cost of mobile
> ownership in at least 13 African countries. (Source: GSMA 2011)  Tax
> reductions on PCs in Colombia have increased PC penetration by 100% in 2
> years, and Internet penetration increased 466% from 2005-2008, versus 161%
> across the region (source: IDC Colombia 2009).
> . Access to international gateway: In 8 of 20 African countries surveyed by
> ISOC there is little or no competition on the international gateway. In the
> same survey, only one of the 20 countries has fully privatized their
> incumbent telecoms company. In South Africa firms began deploying
> open-access metro fibre in 2009, and also furnished a link from
> Johannesburg
> to the SEACOM (undersea cable) landing station in order to avoid very high
> charges proposed by Telkom (the state-owned operator).
> This helped to slash international capacity prices by over 60%.
> . Universal Service Funds (USF) for Broadband (example of how policy can
> lower prices): USFs and similar subsidies improve the availability and
> affordability of broadband for unserved or underserved citizens.
> Historically focused on basic telephony services in remote areas, USFs are
> now being adapted to promote the adoption of broadband by subsidizing
> content, devices, services, and digital training, as well as
> infrastructure.
> USFs can serve as a tool to stimulate demand and increase adoption and use.
>
> About A4AI's membership base:
>
> "A4AI is a diverse coalition of over 30 private sector, public sector, and
> not-for-profit organizations who have come together to advance the shared
> aim of affordable access to both mobile and fixed-line Internet in
> developing countries. We are the first truly global coalition to tackle
> this
> issue and our members are from both developed and less developed nations.
> The World Wide Web Foundation, established by web inventor Sir Tim
> Berners-Lee, initiated the Alliance."
>
> 1. What, exactly, will A4AI do?
>
> A4AI will undertake a blend of international advocacy and research, coupled
> with on-the-ground work. We'll be working in three pioneer countries by the
> end of 2013, and will bring together in-country stakeholders to identify
> obstacles, how to tackle them and we'll then help to drive implementation.
> We will be developing advocacy and policy proposals in conjunction with
> these stakeholders in each country. We will also continue to press at
> international level on these issues and our work will be informed by
> original research - with the first edition of our Annual Affordability
> report being released in December 2013.  We'll also publish case studies,
> position papers and briefings on lessons learned throughout the year to
> share knowledge.
>
> 2. What is the relationship between Internet.org and A4AI?
>
> While A4AI and Internet.org are two separate organisations, there is a
> common goal (in addition to common partners in Facebook and Ericsson) of
> making internet access available to more people around the world.  A4AI has
> a clear focus on policy and regulatory issues surrounding access while
> Internet.org is focused on identifying technical innovations and new
> business models that can help drive down the cost of data.  Wherever
> possible, we will we collaborate to maximise impact.
>
>
> Regards.
>
>
> Ndemo.
>
>
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> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
> for people and institutions interested and involved in ICT policy and
> regulation. The network aims to act as a catalyst for reform in the ICT
> sector in support of the national aim of ICT enabled growth and development.
>
> KICTANetiquette : Adhere to the same standards of acceptable behaviors
> online that you follow in real life: respect people's times and bandwidth,
> share knowledge, don't flame or abuse or personalize, respect privacy, do
> not spam, do not market your wares or qualifications.
>
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