Affordability:<br><br>This will never be realised so long as there exists dominant market <br>private monopolies. Government does not need to subsidize, but only <br>enable local participation at the last mile. The only "problem" right now
<br>is the used-to-corporate-customers-only business models looks to still <br>miss to see the rural connectivity business case.<br><br>Assertion 1 ; INFRASTRUCTURE MONOPOLY<br><br>Grameen Telecom's original goal was to have a phone in every one of
<br>Bangladesh's 65,000 villages by 2000, but only 4,543 village phones <br>were in service as of March, 2001. The primary constraint has been <br>a distorted telecommunications market controlled by a monopolistic <br>
government provider, BTTB. Because BTTB has been unwilling to <br>increase its interconnect capacity, despite GP's offer to pay for the <br>upgrading, GP and other mobile companies have been unable to <br>connect additional phones to the national switched network and
<br>instead have had to offer primarily mobile-to-mobile phone services (3). <br><br>This infrastructure barrier has also limited expansion of the rural phone <br>network. <br><br>Assertion 2: BUSINESS CASE:<br><br>Grameen Telecom (GT) has the explicit goal of helping Grameen
<br>Bank's members shift from relatively low-yield traditional ventures <br>like animal husbandry into the technology sector, by creating <br>micro-enterprises that can both generate individual income and <br>provide whole villages with connectivity. GT uses GrameenPhone's
<br>advanced GSM technology in stationary village phones owned and <br>operated by local entrepreneurs. These entrepreneurs purchase <br>the phones with money borrowed from Grameen Bank (2), and <br>sell phone service to customers by the call. Rates are generally
<br>twice the wholesale rate charged by GP plus taxes and airtime <br>fees. An average of 70 customers a month uses each phone; <br>this shared-access business model concentrates demand and <br>creates relatively high cash flow, even in poor villages, enabling
<br>operators to make regular loan payments and still turn a profit. <br>Repayment rates to Grameen Bank are 90-95%.<br><br>Rural telephones are also very profitable for GrameenPhone, <br>bringing in revenues per phone of $93 a month in March 2001,
<br>twice as much as GP's urban mobile phones. However, rural <br>phones represent less than 2% of the phones used on GP's <br>network and bring in only 8 % of the company's total revenue, <br>so that the company's profitability depends primarily on its
<br>urban business. <br><br>[<a href="http://www.digitaldividend.org/case/case_grameen.htm">http://www.digitaldividend.org/case/case_grameen.htm</a>]<br><br>---- United States -----<br><br>Let me just share with you a little story -- the reason that
<br>I'm excited about this thing being possible. I took a trip to <br>Minnesota and there was a company called Optical Solutions. <br><br>They market what is called a passive optical network in which <br>they bring fiber right to the household. They were describing a
<br>farmer in <br><br>Northwestern Minnesota who's at the end of this passive optical <br>network. He has a couple hundred digital channels. They even <br>sent in another fiber for a couple of analog channels. He has 10
<br>to 100 megabytes per second symmetric up in northern Minnesota.<br><br>He's doing this for $80 to $120 per month. So I'm saying here in the <br>northern Virginia high tech corridor where I live I'm 100 feet from a
<br>central office of the RBOC and I can only get 56K dial up modem. <br>I think something is wrong with this picture. <br><br>[<a href="http://www.technology.gov/reports/TechPolicy/BB_Wkshop020325.pdf">http://www.technology.gov/reports/TechPolicy/BB_Wkshop020325.pdf
</a><br>pp33-34]<br>---------<br><br>Transparency (read Freedom of Information) <br><br>It is impossible/very difficult to get annual inter-government <br>departments expenditure on communications. While we are at <br>it could the government be transparent with the fibre optic
<br>financing. Consumers hope of affordable communication is <br>pegged on this cable to ally fear our fears to hear later some <br>questionable financing arrangements we entered into behind <br>our backs. <br><br>Conclusion
<br> <br>Efficient e-government services demand affordable fibre infrastructure<br>
that will not end up a very costly taxpayers burnen >> more poverty.<br>
<br>
Government offices can afford broadband through fibre free inter-gov <br>
offices MPs to/from their rural constituencies. ICAK is well into <br>
actualising community fibres initiatives throughout Kenya with other <br>
like minded partners. <br>
<br>
We shall use alternative infrastructure rollout, we are lobbying for rural <br>
electrification to include an overhead fibre cable by KPLC. Development <br>
finance and govt support can/will leverage this low cost to cover the cost <br>
of the necessary last mile infrastructure.<br>
---------<br><b><i><span style="font-style: italic;"><span style="font-weight: bold;"><br></span></span><a href="mailto:jamesrege@africaonline.co.ke">jamesrege@africaonline.co.ke</a>" <<a href="mailto:jamesrege@africaonline.co.ke">
jamesrege@africaonline.co.ke</a>></i></b> wrote:<blockquote class="replbq" style="border-left: 2px solid rgb(16, 16, 255); margin-left: 5px; padding-left: 5px;">
<br><br>Walu, Your concern on affordability of internet access by rural communities<br>is justified. I don't think fibre optics <br>(being a point-to-point) network can benefit a majority of rural<br>communities economically unless there is a seriously
<br>subsidized provision of the last-mile network. Thousands of schools and<br>Government offices which are situated far <br>away from the fibre optics paths will never sniff the benefits of broadband<br>communications supplied through fibre
<br>optics pipe. Fibre optics, microwave and satellite media always complement<br>each other, especially for restoration <br>purposes. Kenya is lucky to have them all. Can Walu's concern be addressed<br>in all the cases?
<br><br><br><br>On 5/3/07 9:01 AM, "John Walubengo" wrote:<br><br>> Day 5- Statistics on Affordability.<br>> <br>> I acknowledge an interesting thread filtering in on Trust relationships<br>b/w <br>> IGOs/ISPs...feel free to continue contributing on that as well as on
<br>today's <br>> theme on affordability (multi-tasking <br>> encouraged by internet technologies ...) <br>> <br>> and just to pick up from Kai's projection of KDN fiber hitting Bungoma in <br>> early August 2007. This would be quite a welcome and timely development,
<br>but <br>> at what cost to the consumer? To what extend will the (internet)<br>services be <br>> affordable to the rural/average communities? <br>> <br>> Affordability is a subjective term gven that what is considered cheap by
<br>the <br>> Bill Gates of this world is probably not so for the average Kenyan on<br>the <br>> street. In trying to get an objective measurement for affordability,<br>the <br>> Report pegged it on the national average incomes. In other words, if
<br>the <br>> monthly average income in Kenya is around 100USD and if the average<br>monthly <br>> cost for internet access is also around 100USD then obviously the average<br><br>> Kenyan will not bother with accessing the Internet - it just becomes way
<br>> beyond their means or too expensive or not affordable.<br>> <br>> The report indicated that access through the more convenient Internet <br>> Dial-up/Desktop services costed over 200% the average incomes (too
<br>> expensive), while the same access through mobile phones was costing just<br>8% <br>> of the average incomes (quite affordable). What needs to be done in<br>order to <br>> make Internet Services more afforable to Kenyans?
<br>> <br>> 1 day deliberation on this one.<br>> <br>> walu.<br>> <br>> <br>> _______________________________________________<br>> kictanet mailing list<br>> <a href="mailto:kictanet@kictanet.or.ke">
kictanet@kictanet.or.ke</a><br>> <a href="http://kictanet.or.ke/mailman/listinfo/kictanet">http://kictanet.or.ke/mailman/listinfo/kictanet</a><br>> <br>> Please unsubscribe or change your options at <br>><br><a href="http://kictanet.or.ke/mailman/options/kictanet/jamesrege%40africaonline.co.k">
http://kictanet.or.ke/mailman/options/kictanet/jamesrege%40africaonline.co.k</a><br>e<br>> <br><br><br>--------------------------------------------------------------------<br>mail2web - Check your email from the web at
<br><a href="http://link.mail2web.com/mail2web">http://link.mail2web.com/mail2web</a><br><br><br><br>_______________________________________________<br>kictanet mailing list<br><a href="mailto:kictanet@kictanet.or.ke">kictanet@kictanet.or.ke
</a><br><a href="http://kictanet.or.ke/mailman/listinfo/kictanet">http://kictanet.or.ke/mailman/listinfo/kictanet</a><br><br>Please unsubscribe or change your options at <a href="http://kictanet.or.ke/mailman/options/kictanet/alex.gakuru%40yahoo.com">
http://kictanet.or.ke/mailman/options/kictanet/alex.gakuru%40yahoo.com</a></blockquote><br>