[kictanet] Michuki Mwangi discusses solutions to lower Internet costs

[Mwendwa Kivuva]

http://www.standardmedia.co.ke/mobile/article/2000198696/solution-to-lower-internet-costs-more-local-traffic?pageNo=1

Six years before the submarine fibre cable arrived in Kenya, 1Mbps of
international Internet capacity cost about $3,000 (Sh303,750) compared to
today’s cost, which is well below $100 (Sh10,125). So why have the cost
benefits not been fully passed on to end users?

According to operators, the cost of backhaul capacity between cable
stations and cities, towns or locations closer to customers remains high.

The costs associated with building and maintaining backhaul fibre — whether
through rights of way, licensing fees, associated risks or a general lack
of laws that penalise the destruction of infrastructure — means an operator
ends up spending a lot of money keeping the fibre operational, not on its
expansion.

The total of these associated risks on this single investment is ultimately
passed on to the end consumer.
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