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<DIV align=justify><FONT face=Calibri>Thanks Tom for highlighting the
authoritativedocument. I believe this time round the operators and service are
not going to have easy time taking consumers/citizens for a ride; unless they
opt for the "Upende, Usipende" motto. With bigger bundles without lowering
unit costs, it means we shall be paying more as we shall be able to access more
downloads/uploads, more graphics we never used to access. With increased volume
consumed, and lower rates, they should comfortably go past break even point. I
congratulate KDN and Access Kenya for reading the public mood. We trust
diplomacy shall prevail.</FONT></DIV>
<DIV align=justify><FONT face=Calibri></FONT> </DIV>
<DIV align=justify><FONT face=Calibri>Akich Kwach</FONT></DIV>
<DIV align=justify><FONT face=Calibri></FONT> </DIV>
<BLOCKQUOTE
style="BORDER-LEFT: #000000 2px solid; PADDING-LEFT: 5px; PADDING-RIGHT: 0px; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px">
<DIV style="FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV
style="FONT: 10pt arial; BACKGROUND: #e4e4e4; font-color: black"><B>From:</B>
<A title=tmaliti@ap.org href="mailto:tmaliti@ap.org">Maliti, Tom</A> </DIV>
<DIV style="FONT: 10pt arial"><B>To:</B> <A
title=kwach@archway-productions.com
href="mailto:kwach@archway-productions.com">kwach@archway-productions.com</A>
</DIV>
<DIV style="FONT: 10pt arial"><B>Cc:</B> <A
title=kictanet@lists.kictanet.or.ke
href="mailto:kictanet@lists.kictanet.or.ke">KICTAnet ICT Policy
Discussions</A> </DIV>
<DIV style="FONT: 10pt arial"><B>Sent:</B> Tuesday, August 18, 2009 5:07
PM</DIV>
<DIV style="FONT: 10pt arial"><B>Subject:</B> Re: [kictanet] the long fibre
lie...Regulatory Action limited.</DIV>
<DIV><FONT size=2 face=Arial></FONT><FONT size=2 face=Arial></FONT><BR></DIV>
<DIV dir=ltr align=left><SPAN class=031390314-18082009><FONT
face="Palatino Linotype">Hi,</FONT></SPAN></DIV>
<DIV dir=ltr align=left><SPAN class=031390314-18082009><FONT
face="Palatino Linotype"></FONT></SPAN> </DIV>
<DIV dir=ltr align=left><SPAN class=031390314-18082009><FONT
face="Palatino Linotype">Assuming all things remain equal, here's a line from
this year's budget speech that suggests, at the least, ISPs should be bringing
down prices as well as offering bigger bundles:</FONT></SPAN></DIV>
<DIV dir=ltr align=left><SPAN class=031390314-18082009><FONT
face="Palatino Linotype"><FONT
face=Helvetica-Narrow></FONT></FONT></SPAN> </DIV>
<DIV dir=ltr align=left><SPAN class=031390314-18082009><FONT
face="Palatino Linotype">******************************</FONT></SPAN></DIV>
<DIV dir=ltr align=left><SPAN class=031390314-18082009><FONT
face="Palatino Linotype">First, <B>Mr. Speaker, </B>The East African Marine
System Ltd (Teams) and Seacom Kenya Ltd</FONT></DIV>
<DIV dir=ltr align=left>
<P align=left><FONT face="Palatino Linotype">have invested heavily in under
sea fibre optic cables, whose completion and full deployment is</FONT></P>
<P align=left><FONT face="Palatino Linotype">expected to reduce significantly
the cost of communication in our country. In addition to other</FONT></P>
<P align=left><FONT face="Palatino Linotype">measures which the Government has
so far taken to encourage such investment and to further</FONT></P>
<P align=left><FONT face="Palatino Linotype">encourage the uptake of this
facility by the internet service providers and other intermediaries,
I</FONT></P>
<P align=left><FONT face="Palatino Linotype">propose:</FONT></P>
<P align=left><FONT face="Palatino Linotype">(i) To allow the internet service
providers to offset against their taxable income the cost</FONT></P>
<P align=left><FONT face="Palatino Linotype">incurred in acquiring the right
to use the fibre optic cable over a period of twenty years;</FONT></P>
<P align=left><FONT face="Palatino Linotype">(ii) To increase wear and tear on
telecommunication equipment including the fibre optic cable</FONT></P>
<P align=left><FONT face="Palatino Linotype">from 12.5% to 20%;</FONT></P>
<P><FONT face="Palatino Linotype">(iii) To provide tax deduction of 5% on
computer software.</FONT></P>
<P></SPAN><SPAN class=031390314-18082009><FONT
face="Palatino Linotype">*********************************</FONT></SPAN></P></DIV>
<DIV><SPAN class=031390314-18082009><FONT face="Palatino Linotype">May be we
need to look at things from a different angle ...</FONT></SPAN></DIV>
<DIV><FONT face="Palatino Linotype"></FONT> </DIV><!-- Converted from text/plain format -->
<P><FONT size=2>Tom Maliti<BR>Correspondent<BR>East Africa
Bureau<BR><BR>Direct line: +254 20 285 9109<BR>Office line: +254 20 285
9000<BR>
+254 734 555 252<BR>Fax: +254 20 2724726<BR>Mobile +254 733 641 984</FONT>
</P>
<DIV> </DIV><BR>
<DIV dir=ltr lang=en-us class=OutlookMessageHeader align=left>
<HR tabIndex=-1>
<FONT size=2 face=Tahoma><B>From:</B>
kictanet-bounces+tmaliti=ap.org@lists.kictanet.or.ke
[mailto:kictanet-bounces+tmaliti=ap.org@lists.kictanet.or.ke] <B>On Behalf Of
</B>Florence Etta<BR><B>Sent:</B> 18 August 2009 14:24<BR><B>To:</B> Maliti,
Tom<BR><B>Cc:</B> KICTAnet ICT Policy Discussions<BR><B>Subject:</B> Re:
[kictanet] the long fibre lie...Regulatory Action
limited.<BR></FONT><BR></DIV>
<DIV></DIV>
<DIV style="FONT-FAMILY: garamond,new york,times,serif; FONT-SIZE: 12pt">If
the WASC experience is anythng to go by falling prices are not guaranteed
simply by the presence of increased
bandwidth!<BR><BR><BR><BR>Cheers,<BR>FE<BR><BR>(<SPAN
style="FONT-STYLE: italic">Still alive, kicking and yes
lurking</SPAN>!)<BR><BR>
<DIV> </DIV>
<DIV><SPAN
style="FONT-STYLE: italic; FONT-FAMILY: arial narrow; COLOR: rgb(64,64,255)">Florence
Etta PhD </SPAN><SPAN
style="FONT-STYLE: italic; FONT-FAMILY: arial narrow; COLOR: rgb(64,64,255)"></SPAN><BR
style="FONT-STYLE: italic; FONT-FAMILY: arial narrow; COLOR: rgb(64,64,255)"><SPAN
style="FONT-STYLE: italic; FONT-FAMILY: arial narrow; COLOR: rgb(64,64,255)">Telephone:</SPAN></DIV>
<DIV><SPAN
style="FONT-STYLE: italic; FONT-FAMILY: arial narrow; COLOR: rgb(64,64,255)">Nairobi
Mobile: +254-733-621-851</SPAN></DIV>
<DIV><SPAN
style="FONT-STYLE: italic; FONT-FAMILY: arial narrow; COLOR: rgb(64,64,255)">New
York Rez: +1-917-639-3691<BR>Canada Rez: +1-613-232-2729<BR></SPAN></DIV>
<DIV><SPAN
style="FONT-STYLE: italic; FONT-FAMILY: arial narrow; COLOR: rgb(64,64,255)">Alternative
Email:florence.etta@gmail.com</SPAN></DIV>
<DIV><BR></DIV>
<DIV style="FONT-FAMILY: garamond,new york,times,serif; FONT-SIZE: 12pt"><BR>
<DIV
style="FONT-FAMILY: times new roman,new york,times,serif; FONT-SIZE: 12pt"><FONT
size=2 face=Tahoma>
<HR SIZE=1>
<B><SPAN style="FONT-WEIGHT: bold">From:</SPAN></B> warigia bowman
<warigia@gmail.com><BR><B><SPAN style="FONT-WEIGHT: bold">To:</SPAN></B>
feanywhere@yahoo.co.uk<BR><B><SPAN style="FONT-WEIGHT: bold">Cc:</SPAN></B>
KICTAnet ICT Policy Discussions
<kictanet@lists.kictanet.or.ke><BR><B><SPAN
style="FONT-WEIGHT: bold">Sent:</SPAN></B> Tuesday, 18 August, 2009
7:02:56<BR><B><SPAN style="FONT-WEIGHT: bold">Subject:</SPAN></B> Re:
[kictanet] the long fibre lie...Regulatory Action limited.<BR></FONT><BR>Dear
Alex
<DIV><BR></DIV>
<DIV>I share your frustration about the high prices and low bandwidth. My
bamba is still slow. I too believe consumers are not getting a fair
deal. </DIV>
<DIV><BR></DIV>
<DIV>That being said, in Ndemo's defense, he is one of the most honest and
hardworking PSes I have met in my research so far in this beautiful country of
ours, across many different sectors. In terms of roles, the PS is the
implementer, whereas the Minister is the policy "maker." Although lets
be honest, Ndemo often does most of his bosses work, while not getting the
credit, or the paycheck . . . </DIV>
<DIV><BR></DIV>
<DIV>I think your ire, while very justified, should be directed at the
Ministers, and at the companies, particularly Safaricom and Zain. </DIV>
<DIV><BR></DIV>
<DIV>Yours, Warigia<BR><BR>
<DIV class=gmail_quote>On Tue, Aug 18, 2009 at 1:45 PM, Gakuru Alex <SPAN
dir=ltr><<A href="mailto:alexgakuru.lists@gmail.com" rel=nofollow
target=_blank
ymailto="mailto:alexgakuru.lists@gmail.com">alexgakuru.lists@gmail.com</A>></SPAN>
wrote:<BR>
<BLOCKQUOTE
style="BORDER-LEFT: rgb(204,204,204) 1px solid; MARGIN: 0pt 0pt 0pt 0.8ex; PADDING-LEFT: 1ex"
class=gmail_quote>Warigia,<BR><BR>Below message to consumers and skunkworks
lists sparked the heated discussions.<BR><BR>On Fri, Aug 14, 2009 at 7:11
AM, Alex Gakuru<<A href="mailto:gakuru@gmail.com" rel=nofollow
target=_blank ymailto="mailto:gakuru@gmail.com">gakuru@gmail.com</A>>
wrote:<BR>> What a long optics fibre lie the whole thing
was...<BR>><BR>> ---Business Daily---<BR>><BR>> "we do not
anticipate that [Internet] prices will drop as drastically<BR>> as
initially indicated or within a short time-frame"<BR>><BR>> <<A
href="http://www.businessdailyafrica.com/Company%20Industry/-/539550/639386/-/u8ardrz/-/index.html"
rel=nofollow
target=_blank>http://www.businessdailyafrica.com/Company%20Industry/-/539550/639386/-/u8ardrz/-/index.html</A>><BR>><BR>>
"..it was planning to implement an immediate 24 per cent discount on<BR>>
its internet charges and promised higher discounts once connections
to<BR>> international fibre optic links went live by the end of next
month.."<BR>><BR>> <<A
href="http://www.businessdailyafrica.com/Company%20Industry/-/539550/638808/-/u8bcyoz/-/index.html"
rel=nofollow
target=_blank>http://www.businessdailyafrica.com/Company%20Industry/-/539550/638808/-/u8bcyoz/-/index.html</A>><BR>><BR>>
---summary---<BR>> in short, consumers are going to continue being
ripped-off while a<BR>> just too comfortable "hands-off" government sits
back pretentiously<BR>> expecting "market-forces" to push prices down
-<BR>><BR>> The way I see it? we have several options a) to demand
government<BR>> officers( Ndemo & Co.) who promised cheap internet to
resign, b)<BR>> demand regulator to wake up and proactively set the
prices c) continue<BR>> living in a denial and that,hopefully, one day we
will have<BR>> "affordable" internet in Kenya.<BR>><BR>> Where is
Bitange Ndemo and and why did he lie to us and raised<BR>> Kenyans' hopes
for cheap internet? we shall have serious problems to<BR>> believe
anything he promises henceforth. He should resign if internet<BR>> prices
do not go down as he promised.<BR>><BR>> And who runs this country
anyway? telecommunication companies or the<BR>> government and the
regulator?<BR>><BR>> Alex<BR>>
_______________________________________________<BR>> ke-internetusers
mailing list<BR>> <A href="mailto:ke-internetusers@bdix.net" rel=nofollow
target=_blank
ymailto="mailto:ke-internetusers@bdix.net">ke-internetusers@bdix.net</A><BR>>
<A href="http://www.bdix.net/mailman/listinfo/ke-internetusers" rel=nofollow
target=_blank>http://www.bdix.net/mailman/listinfo/ke-internetusers</A><BR>><BR><BR>Waundo,<BR><BR>Kenya
current problem not that old one, its different and it is<BR>"failed
telecommunications market liberarisation."<BR><BR><BR>" 3.4.
Most rural areas still do not have Internet access despite<BR>the fact
that there<BR> are many licensed ISPs.
Additionally, the quality of service has not<BR>
improved. Isn�t there a need to make provisions to enable<BR>rural
access and<BR> enforce Service Level
Agreements (SLAs) to guarantee quality<BR>of service?<BR>The licensed
operators present said that the major factors hindering<BR>their rollout to
the<BR>rural areas are:<BR> o High
cost of connectivity offered by carriers.<BR>Competition has been
used,<BR> as a means
to lower prices however there seems to be<BR>no correlation<BR>
between the cost and the number of
players in the<BR>market. The licensing<BR>
of more players in the IG&BO and PDNO
licence has not<BR>translated to<BR>
lower access costs.<BR>
o Competition may also be used as a means to
improving<BR>quality of service<BR>
delivery and encourage the use of Service Level<BR>Agreements
(SLA). This<BR>
however has not been evident in the Kenyan market.<BR>
o Finally, competition should result in increased
access<BR>and availability to<BR>
telecommunication service and infrastructure.<BR>However,
since rural areas<BR>
are not economically viable, most operators<BR>concentrate operations
in<BR> urban
centres."<BR><BR><<A href="http://www.cck.go.ke/isp_stakeholders.pdf"
rel=nofollow
target=_blank>http://www.cck.go.ke/isp_stakeholders.pdf</A>><BR><BR>The
question begs... What are the Ministry of Information and<BR>Communications
and the Regulator actually doing to ensure that<BR>consumers
benefit?<BR><BR>For further erodes hopes, if not adds insult to consumers
injuries, to<BR>read on today's Business Daily "BUYOUT CCK says local
ownership rule<BR>waived to allow foreign investor own more than 80
p.c"<BR><BR>Could some people in government actually responsible and/or
prefer the<BR>statu-quo to remain? Now is the time to ask some of these
hard<BR>questions- "academics" aside!<BR><BR>Alex<BR>
<DIV>
<DIV></DIV>
<DIV class=h5><BR><BR>On Tue, Aug 18, 2009 at 12:28 PM, waudo siganga<<A
href="mailto:emailsignet@mailcan.com" rel=nofollow target=_blank
ymailto="mailto:emailsignet@mailcan.com">emailsignet@mailcan.com</A>>
wrote:<BR>> Hi Warigia - First sorry for missing ur big day due to
some other commitment<BR>> I had. I do not believe governments
or governmental agencies should set<BR>> consumer prices
on anything. That is the work of market forces through<BR>>
competition. What governments need to do is ensure an environment
that<BR>> fosters competition. The example of ATT is from the old days
when ATT was a<BR>> monopoly operator. It reminds me of the 1998 Kenya
Communications Act that<BR>> gave monopoly status to Telkom Kenya in
provision of some services such as<BR>> landlines in Nairobi and
international telephony. The mistaken rationale was<BR>> that Telkom
would rake in some "super profits" which would in turn be<BR>> utilised
in universal access provision. Needless to say those objectives<BR>> were
never attained. All along we prodded the Government to free the
market<BR>> through competition and private sector investment. When this
happend as in<BR>> the case of the mobile telephony sector the results in
terms of better and<BR>> more afrordable services were quick to manifest.
Our argument in the case of<BR>> universal access was that it was
better for the Government to allow freedom<BR>> in the market and
then use fiscal instruments to raise funds from the<BR>> IMPROVED,
EXPANDED and CHEAPER services. This is being done today through
a<BR>> 10% excise tax on airtime and, believe me, most users do not
even notice it.<BR>><BR>> With the marine fibre I noticed what looked
like cross-ownership and<BR>> cross-interest in the different ventures
and maybe that can have an effect<BR>> on the competitive environment
necessary to bring prices down significantly.<BR>><BR>> Kind
Regards,<BR>> Waudo<BR>><BR>><BR>> On Tue, 18 Aug 2009 11:21
+0300, "warigia bowman" <<A href="mailto:warigia@gmail.com" rel=nofollow
target=_blank ymailto="mailto:warigia@gmail.com">warigia@gmail.com</A>>
wrote:<BR>><BR>> Dear Brian<BR>><BR>> Do you believe that ISPs
in Kenya are sufficiently competitive to keep<BR>> prices fair? I am just
asking. I really do not know.<BR>><BR>> What about the concern people
have expressed that KDN has dropped prices<BR>> dramatically to ISPs, but
consumers are not seeing the benefit.<BR>><BR>> By the way, it is
WONDERFUL to hear from you!<BR>><BR>> Rigia<BR>><BR>> On Tue,
Aug 18, 2009 at 11:18 AM, Brian Munyao Longwe <<A
href="mailto:blongwe@gmail.com" rel=nofollow target=_blank
ymailto="mailto:blongwe@gmail.com">blongwe@gmail.com</A>><BR>>
wrote:<BR>><BR>> Good point Warigia and the same applies here - CCK
can and have exercised<BR>> their authority to regulate voice pricing -
this is especially true when<BR>> there is either a monopoly or an
operator with significant market share.<BR>><BR>> The same does not
apply to market sectors like Internet services because<BR>> there is full
competition and never any player with significant market<BR>> share. In
the USA - FCC have never regulated Internet or bandwidth pricing<BR>> as
market forces generally accomplish this.<BR>><BR>> Best
regards,<BR>><BR>> Brian<BR>><BR>><BR>> On Tue, Aug 18, 2009
at 11:11 AM, warigia bowman <<A href="mailto:warigia@gmail.com"
rel=nofollow target=_blank
ymailto="mailto:warigia@gmail.com">warigia@gmail.com</A>>
wrote:<BR>><BR>><BR>><BR>> Dear colleagues<BR>><BR>> Rates
of operators can and have been regulated, In fact, in the United<BR>>
States we had something called rate of return regulation when ATT was
a<BR>> monopoly. They were allowed to charge a high rate, but in
exchange, they had<BR>> to ensure every tiny village of even 200 had
phone service. Why can't our<BR>> operators do that?<BR>><BR>>
Sincerely, Warigia<BR>><BR>> On Mon, Aug 17, 2009 at 8:40 AM,
Walubengo J <<A href="mailto:jwalu@yahoo.com" rel=nofollow target=_blank
ymailto="mailto:jwalu@yahoo.com">jwalu@yahoo.com</A>>
wrote:<BR>><BR>><BR>><BR>> Alex,<BR>><BR>> Your have
rightly qaulified your solution - as simple. Indeed it is.
Infact<BR>> too simplistic to fly. The idea that the Regulator can
reign in Operators<BR>> who charge "high" internet rates cannot and will
not work. Think about the<BR>> in-famous SAT3 fiber link on the
west coast of africa. Ask yourself why the<BR>> Regulators in
Nigeria, Ghana, Cameroon, Angola, S-Africa etc have never<BR>>
stepped in and revoked licensces of operators over the last 15yrs of
high<BR>> internet costs offered on the fiber...<BR>><BR>> The
answers are very complex...I will actually be discussing these<BR>>
limitations and available interventions in some upcoming ICT conference
at<BR>> Strath University in Sept 09 and I dont want to pre-empt
;-)....<BR>><BR>> walu.<BR>><BR>><BR>> --- On Fri, 8/14/09,
Gakuru Alex <<A href="mailto:alexgakuru.lists@gmail.com" rel=nofollow
target=_blank
ymailto="mailto:alexgakuru.lists@gmail.com">alexgakuru.lists@gmail.com</A>>
wrote:<BR>><BR>>> From: Gakuru Alex <<A
href="mailto:alexgakuru.lists@gmail.com" rel=nofollow target=_blank
ymailto="mailto:alexgakuru.lists@gmail.com">alexgakuru.lists@gmail.com</A>><BR>>>
Subject: Re: [Skunkworks] Fwd: the long fibre lie... Ndemo should
resign<BR>>> if internet prices do not drop as he
promised!!<BR>>> To: "Skunkworks forum" <<A
href="mailto:skunkworks@lists.my.co.ke" rel=nofollow target=_blank
ymailto="mailto:skunkworks@lists.my.co.ke">skunkworks@lists.my.co.ke</A>><BR>>>
Date: Friday, August 14, 2009, 8:44 PM<BR>>> On Fri, Aug 14, 2009 at
7:38 PM,<BR>>> David Kiania | Asentric Consulting<BR>>>
Ltd<<A href="mailto:kianiadee@gmail.com" rel=nofollow target=_blank
ymailto="mailto:kianiadee@gmail.com">kianiadee@gmail.com</A>><BR>>>
wrote:<BR>>> ><BR>>> > Set the precedence what's your
solution? Am sure if<BR>>> you did we'd have<BR>>> >
heard it by now. This thread is a knee jerk reaction<BR>>> to a bad
internet<BR>>> > day, we all have one.<BR>>>
><BR>>><BR>>> Simple, the entity under Ndemo's docket that
grants these<BR>>> cowboy<BR>>> operators licenses puts it's
foot down and warn that I may<BR>>> revoke<BR>>> licenses for
operators that charge waaaay up in the sky not<BR>>> just
above<BR>>> cost but ABOVE acceptable international pricing
benchmarks.<BR>>> They've<BR>>> all the data they need. Imagine,
for example, Safaricom on<BR>>> the verge<BR>>> of losing their
license, price drops, drops, drops, drops,<BR>>> drops,
and<BR>>> drops..... across board.<BR>>><BR>>> Would this
be acceptable to you?<BR>>>
_______________________________________________<BR>>> Skunkworks
mailing list<BR>>> <A href="mailto:Skunkworks@lists.my.co.ke"
rel=nofollow target=_blank
ymailto="mailto:Skunkworks@lists.my.co.ke">Skunkworks@lists.my.co.ke</A><BR>>>
<A href="http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks"
rel=nofollow
target=_blank>http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks</A><BR>>>
Other services @ <A href="http://my.co.ke" rel=nofollow
target=_blank>http://my.co.ke</A><BR>>> Other lists<BR>>>
-------------<BR>>> Announce:<BR>>> <A
href="http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks-announce"
rel=nofollow
target=_blank>http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks-announce</A><BR>>>
Science: <A
href="http://lists.my.co.ke/cgi-bin/mailman/listinfo/science" rel=nofollow
target=_blank>http://lists.my.co.ke/cgi-bin/mailman/listinfo/science</A><BR>>>
kazi: <A
href="http://lists.my.co.ke/cgi-bin/mailman/admin/kazi/general" rel=nofollow
target=_blank>http://lists.my.co.ke/cgi-bin/mailman/admin/kazi/general</A><BR>>><BR>></DIV></DIV></BLOCKQUOTE></DIV>--
<BR>Dr. Warigia Bowman<BR>Assistant Professor <BR>The Department of Public
Policy Leadership<BR>The University of Mississippi<BR>107 Odom
Hall<BR>University, MS 38677<BR><BR>URL: <A
href="http://www.olemiss.edu/depts/leadership/index.html" rel=nofollow
target=_blank>http://www.olemiss.edu/depts/leadership/index.html</A><BR>PHONE:
662-915-1904<BR>EMAIL: <A href="mailto:mwbowman@olemiss.edu" rel=nofollow
target=_blank
ymailto="mailto:mwbowman@olemiss.edu">mwbowman@olemiss.edu</A><BR></DIV></DIV></DIV></DIV><BR><PRE>
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