[kictanet] Telkom Kenya cries foul over social media’s free ride on its - Corporate News

Wed Sep 14 12:45:19 EAT 2016

Thats an interesting question Mwendwa, especially taking into light these
players are setting up Internet facilities. The way the future goes is that
if Internet is a penetrating force like it is today the traditional "Telco"
model will be a redundant feature to have in our smart phone models.

I wrote abit on this earlier (The Telecommunications Revolution is here):
https://www.linkedin.com/pulse/telecommunication-
revolution-here-ahmed-mohamed-maawy?trk=prof-post

On Wed, Sep 14, 2016 at 12:05 PM, Mwendwa Kivuva via kictanet <
kictanet at lists.kictanet.or.ke> wrote:

> I am just wondering what would happen to their data revenue if Facebook,
> Google, Youtube, Twitter and Netflix users stop using the network for those
> services. Is there business not selling data regardless of the use of the
> data?
>
> ______________________
> Mwendwa Kivuva, Nairobi, Kenya
> twitter.com/lordmwesh
>
>
>
> On 14 September 2016 at 11:44, Barrack Otieno via kictanet <
> kictanet at lists.kictanet.or.ke> wrote:
>
>> Interesting paper Mwende,
>>
>> What would the internet be without OTT and content? Back to basics.
>>
>>
>> Regards
>>
>> On 9/14/16, Mwende Njiraini via kictanet <kictanet at lists.kictanet.or.ke>
>> wrote:
>> > Good morning
>> >
>> > The network neutrality debate has landed on the shores of Africa.
>> >
>> > Here is an excerpt of an academic paper i had written some time back.
>> >
>> > *The net neutrality debate can be viewed as the next battle between the
>> > netheads and the bellheads; providers of broadband access on one side
>> and
>> > Internet content and application providers on the other side. Frieden
>> > (cited Orlowski 2006) states that the Bellheads are investing heavily in
>> > fiber capability which will solve a problem that the “Netheads” have
>> proved
>> > themselves unable or unwilling to tackle, that of high quality video
>> over
>> > IP.*
>> >
>> >
>> >
>> > *Given that US government is keen to facilitate the rollout of universal
>> > and affordable broadband[1] <#_ftn1>.  It can be argued that the
>> aggressive
>> > fiber rollouts could suffer if network operator shares continue to lose
>> > value making it difficult to blame the companies if they did slow down
>> roll
>> > out. The companies, after all, have a duty to shareholders to pursue
>> > maximum profits not necessarily to fulfill the goals of Internet
>> advocates
>> > (Drucker, 2006).   However one has to be careful in analysing the
>> market as
>> > forces in telecommunications can be misleading. Telephone companies, for
>> > example, get billions of dollars in federal and state subsidies for
>> rural
>> > service.   Access charges are designed to compensate network providers
>> for
>> > the use of their facilities and the compensation scheme is in part funds
>> > universal service.  Additionally, these companies may be claiming more
>> in
>> > the depreciation and the value of their assets.  *
>> >
>> >
>> >
>> > *Regulators may therefore seek to eliminate access charges by allowing
>> > rates to rise to cover network cost if not service providers should pay
>> > access charges.  This is however difficult to implement politically on
>> the
>> > basis of public interest.  Additionally, it is equally difficult to
>> expect
>> > new entrants to pay access since the avoidance of access is, at least in
>> > part, the source of their perceived competitive advantage.  *
>> >
>> >
>> >
>> > *Historically, the FCC has not regulated the Internet or the services
>> > provided over it. However following the 9/11 terror attacks in the US,
>> > security is a key government priority.  Consequently, open access to the
>> > Internet articulated in the FCC “Four Network Freedoms”, is subject to
>> > legality of content and needs of law enforcement (Frieden, 2006)    The
>> FCC
>> > is thus constantly reviewing mechanisms[2] <#_ftn2> to implement
>> important
>> > social objectives, such as public safety, law enforcement access,
>> consumer
>> > protection and disability access, as communications migrate to
>> > Internet-enabled services.*
>> >
>> >
>> >
>> > *On Wednesday, 28th June 2006 the Senate commerce panel voted against
>> > amending the telecommunications bill by attaching the net neutrality
>> > provisions that would prevent operators from blocking, degrading or
>> > prioritising service on their networks (Orlowski, 2006).  The defeat of
>> the
>> > amendment could herald the return of the vertically integrated incumbent
>> > firm providing services along the whole value chain.  Despite the fact
>> that
>> > the access network has been considered a natural monopoly area as a
>> single
>> > firm could presumably construct and provide local services at a lower
>> > average cost than two or more firms (Spulber, 2002)[3] <#_ftn3>, Sir Tim
>> > Berners-Lee, the creator of the web, views the defeat of the net
>> neutrality
>> > legislation as the entering a “dark period” for the Internet, if access
>> > suppliers were allowed to choose which traffic to prioritise (BBC,
>> 2006).
>> > *
>> >
>> >
>> >
>> > *The higher costs of a “tiered Internet” levied content providers will
>> > simply be passed on to consumers, directly or indirectly. As there is no
>> > “free ride” on the network, and consumers will bear the costs of network
>> > development through higher access charges and higher prices for online
>> > goods and services[4] <#_ftn4>. Moreover, a “tiered Internet” will
>> further
>> > concentrate the market power of the cable modem and DSL duopoly,
>> > eliminating competition in the conduits and leaving consumers with no
>> > escape from content discrimination.*
>> >
>> >
>> >
>> > *The potential return of the two tiered Internet may further widen the
>> > digital divide between developed and developing countries.  It may be
>> > argued that successful internet organizations should contribute to the
>> cost
>> > of internet infrastructure either through Internet settlement
>> agreements or
>> > contribution to universal access funds.  This argument is based on the
>> fact
>> > that these companies are providing functional equivalent services, thus
>> > there is a need for operators to maintain network integrity and for
>> > governments to guarantee national security, and I concur.*
>> >
>> > ------------------------------
>> >
>> > [1] <#_ftnref1> FCC defines "high speed" as 200 kilobits in at least one
>> > direction.
>> >
>> > [2] <#_ftnref2> On February 12, 2004, the FCC ruled that an entirely
>> > Internet-based VoIP service would be an unregulated information service
>> in
>> > USA.  However the FCC released an order requiring VoIP providers to
>> deliver
>> > enhanced 911 emergency services to its customers.   *Source:
>> > http://www.fcc.gov/cgb/consumerfacts/emergencies.html
>> > <http://www.fcc.gov/cgb/consumerfacts/emergencies.html>*
>> >
>> > [3] <#_ftnref3> This theory is based on the assumption that firms will
>> seek
>> > to leverage on economies of scale to achieve production efficiencies,
>> > pricing services above cost and not precluding competition
>> >
>> > [4] <#_ftnref4> Scott (2006) predicts that companies like Google and
>> Yahoo
>> > that support their free services through advertising revenue will raise
>> > their advertising rates, resulting in higher consumer prices on all the
>> > goods that advertise on these sites.  While Amazon and eBay will raise
>> > their rates to account for the extra charges and I-Tunes and other
>> > pay-per-download content sites will charge higher rates as well, to
>> cover
>> > access charges by AT&T and Verizon.
>> >
>> > Disclaimer: Views expressed except those referenced are the author's
>> own.
>> > The full paper is available on request.
>> >
>> > On Wed, Sep 14, 2016 at 7:16 AM, Ali Hussein via kictanet <
>> > kictanet at lists.kictanet.or.ke> wrote:
>> >
>> >> Listers
>> >>
>> >> This is getting abit tiring..Telcos complaining social media platforms
>> >> are
>> >> getting a free ride on their infrastructure.
>> >>
>> >> http://www.businessdailyafrica.com/Corporate-News/Telkom-Kenya-
>> >> cries-foul-over-social-media/539550-3379938-9liqm4/
>> >>
>> >> What are your thoughts? Should Telcos charge companies like Google and
>> >> Facebook for access to their networks?
>> >>
>> >> What would be next? A small fee for every website?
>> >>
>> >> #NetNeutrality
>> >>
>> >> *Ali Hussein*
>> >> *Principal*
>> >> *Hussein & Associates*
>> >> +254 0713 601113
>> >>
>> >> Twitter: @AliHKassim
>> >>
>> >> Skype: abu-jomo
>> >>
>> >> LinkedIn: http://ke.linkedin.com/in/alihkassim
>> >>
>> >>
>> >> "Discovery consists in seeing what everyone else has seen and thinking
>> >> what no one else has thought".  ~ Albert Szent-Györgyi
>> >>
>> >> Sent from my iPad
>> >>
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>> >>
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>>
>>
>> --
>> Barrack O. Otieno
>> +254721325277
>> +254733206359
>> Skype: barrack.otieno
>> PGP ID: 0x2611D86A
>>
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>> ailman/options/kictanet/kivuva%40transworldafrica.com
>>
>> 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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>
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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.
>

-- 
*Ahmed Maawy*
Executive Director - SwahiliBox / M-Power (CBO)
Curator - Global Shapers Mombasa Hub
Ambassador - Open Knowledge
Director - Startup Grind Mombasa
Software Developer - AJ+ / EveryLayer
(KE) +254 714 960 627
Skype: ultimateprogramer

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