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<div class=Section1>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'>Eric,<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'>This is exactly the type of statement that is dangerous. It is a
little bit like deflation …<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'>Because everybody expect cheaper prices nobody moves .. And because
of this, uptake is below the potential, usage of the cable is sub optimal and prices
don’t come down … Result: People will wait longer ..<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'>I still don’t understand why we are so set on the E1 price
(actually we should talk about 2M duplex and not old school) for a BPO ..
Quality is what matters ..<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'>With a good quality compression you can push more than 256 calls at
any given time. So in an 8 hour shift you could have 122880 call minutes with
256 agents .. Assume 70% load, this makes 86016 minutes. Surely, you will have
to terminate them into a network. Assume 0.02USD per minute.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'>So my question: What is your staff cost? Let’s argue 700KSH
per day and person? Electricity? KSH 20 per day and person? Rent KSH 50 per day
and person (assuming you work 2 shifts, 7 days a week).<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'>Add software, overheads …..<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'>So now, what is the cost of communication?<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'>Currently an E1 in Kenya costs 1200 USD (not using the free offer)
list price. So we said 2 shifts, 30 days, 70% load ..<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'>5160960 call minutes a month<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'>That makes 0,0174 KSH per minute (took a rate of 75 to the USD) for
the submarine portion!<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'>We add KSH 2 for termination = 2,0174 KSH communications per minute<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'>Salaries: 1,45 KSH per minute (and this includes the idle ones or
KSH 2,08 per minute at 70%<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'>You see the contribution of the pure Submarine portion .. It is
NEXT TO NOTHING.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'>Any comments?<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'>Kai<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:blue'><o:p> </o:p></span></p>
<div>
<div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'>
<p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>Von:</span></b><span
style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>
kictanet-bounces+kai.wulff=kdn.co.ke@lists.kictanet.or.ke
[mailto:kictanet-bounces+kai.wulff=kdn.co.ke@lists.kictanet.</span><span
lang=DE style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>or.ke] <b>Im
Auftrag von </b>Eric M.K Osiakwan<br>
<b>Gesendet:</b> Sunday, November 29, 2009 20:35<br>
<b>An:</b> kai.wulff@kdn.co.ke<br>
<b>Cc:</b> KICTAnet ICT Policy Discussions<br>
<b>Betreff:</b> [kictanet] NCA Board member gives its price target as an E1 for
US$100-500<o:p></o:p></span></p>
</div>
</div>
<p class=MsoNormal><o:p> </o:p></p>
<div>
<p style='margin:0in;margin-bottom:.0001pt;line-height:12.75pt'><span
style='font-size:9.0pt;font-family:"Verdana","sans-serif";color:#555555'>A two
day workshop called “Fiber Optic Undersea (Submarine) cable”, in
collaboration with <a href="http://98.130.227.12/" target="_blank"><span
style='color:#2970A6;text-decoration:none'>West Africa Telecommunications
Regulators Assembly (WATRA)</span></a>, the <a href="http://www.gtz.de/en/"
target="_blank"><span style='color:#2970A6;text-decoration:none'>German
Technical Group (GTZ)</span></a> and also the <a
href="http://www.nca.org.gh/" target="_blank"><span style='color:#2970A6;
text-decoration:none'>National Communications Authority (NCA)</span></a> at
the La Palm Royal Hotel.<o:p></o:p></span></p>
<p style='margin:0in;margin-bottom:.0001pt;line-height:12.75pt'><span
style='font-size:9.0pt;font-family:"Verdana","sans-serif";color:#555555'>The
workshop offered <a href="http://98.130.227.12/" target="_blank"><span
style='color:#2970A6;text-decoration:none'>WATRA</span></a> members the
guidance regarding the regulation of access to new undersea cables and also
come up with adoptable guidelines for issuance of undersea cable licenses and
landing rights agreement. This would ensure the transparency in deployment and
pricing of undersea cables.<o:p></o:p></span></p>
<p style='margin:0in;margin-bottom:.0001pt;line-height:12.75pt'><span
style='font-size:9.0pt;font-family:"Verdana","sans-serif";color:#555555'>A
Member of the Board of Directors of <a href="http://www.nca.org.gh/"
target="_blank"><span style='color:#2970A6;text-decoration:none'>NCA</span></a>,
Solomon Quandzie has observed that the availability of international bandwidth,
coupled with NCA’s plans for licensing additional terrestrial fiber optic
cables systems, and also wireless broadband access (through things like WiMAX)
operators would finally set the deployment of broadband networks throughout the
country and further lay the foundation for rapid economic growth in the ICT
sector.<o:p></o:p></span></p>
<p style='mso-margin-top-alt:0in;margin-right:0in;margin-bottom:7.5pt;
margin-left:0in;line-height:12.75pt'><span style='font-size:9.0pt;font-family:
"Verdana","sans-serif";color:#555555'>He said, application of Business Process
Outsourcing (BPOs) and Government’s decentralization program would
enhance various e-government packages which would increase the social-economic
development of the citizenry in a manner never witnessed in this country over
the past several years.<o:p></o:p></span></p>
<p style='mso-margin-top-alt:0in;margin-right:0in;margin-bottom:7.5pt;
margin-left:0in;line-height:12.75pt'><span style='font-size:9.0pt;font-family:
"Verdana","sans-serif";color:#555555'>Quandzie said that the NCA is committed
to opening up the market base of the telecommunication industry by offering an
additional fiber optic cable operator (WACS), which would add more capacity to
the existing one, all within a 24 month period.<o:p></o:p></span></p>
<p style='mso-margin-top-alt:0in;margin-right:0in;margin-bottom:7.5pt;
margin-left:0in;line-height:12.75pt'><span style='font-size:9.0pt;font-family:
"Verdana","sans-serif";color:#555555'>According to Quandzie, the current SAT 3
cable systems provides an estimated three gigabytes capacity of international
bandwidth to the country at approx systems to become operational, adding that
“They will be adding respectively, for a total of 1,920 gigabytes or 640
fold increase to the current capacity of international bandwidth in the
country”.<o:p></o:p></span></p>
<p style='mso-margin-top-alt:0in;margin-right:0in;margin-bottom:7.5pt;
margin-left:0in;line-height:12.75pt'><span style='font-size:9.0pt;font-family:
"Verdana","sans-serif";color:#555555'>Quandzie said that NCA expectation of a
supply bandwidth a price goal of $100-500 per E1 should be possible within the
very near future which would provide the necessary framework for the attainment
of such an outcome.<o:p></o:p></span></p>
<p style='margin:0in;margin-bottom:.0001pt;line-height:12.75pt'><span
style='font-size:9.0pt;font-family:"Verdana","sans-serif";color:#555555'>He
concluded that with the right regulatory framework established, reliable and
affordable broadband networks, coupled with low cost of available international
bandwidth can be provided through undersea fiber optic cables.<br>
(Source: The Ghanaian Chronicle)<o:p></o:p></span></p>
</div>
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<p class=MsoNormal><o:p> </o:p></p>
</div>
<p class=MsoNormal><o:p> </o:p></p>
<div>
<div>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica","sans-serif";
color:black'>Eric M.K Osiakwan<o:p></o:p></span></p>
</div>
<div>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica","sans-serif";
color:black'>Director <o:p></o:p></span></p>
</div>
<div>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica","sans-serif";
color:black'>Internet Research<o:p></o:p></span></p>
</div>
<div>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica","sans-serif";
color:black'><a href="http://www.internetresearch.com.gh">www.internetresearch.com.gh</a><o:p></o:p></span></p>
</div>
<div>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica","sans-serif";
color:black'><a href="mailto:emko@internetresearch.com.gh">emko@internetresearch.com.gh</a><o:p></o:p></span></p>
</div>
<div>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica","sans-serif";
color:black'>42 Ring Road Central, Accra-North<o:p></o:p></span></p>
</div>
<div>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica","sans-serif";
color:black'>Tel: +233.21.258800 ext 7031<o:p></o:p></span></p>
</div>
<div>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica","sans-serif";
color:black'>Fax: +233.21.258811<o:p></o:p></span></p>
</div>
<div>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica","sans-serif";
color:black'>Cell: +233.24.4386792<o:p></o:p></span></p>
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