<HTML>
<HEAD>
<TITLE>Re: [kictanet] ISPs slap Ndemo</TITLE>
</HEAD>
<BODY>
<FONT FACE="Calibri, Verdana, Helvetica, Arial"><SPAN STYLE='font-size:11pt'>Hello All,<BR>
<BR>
Who in this forum thought it possible to enjoy the new calling rates which are 50% of what we used to pay? My point, we need a disruptive force that will force the ISPs to lower their rates. The Government still hold 40% of TEAMS, and I remember the PS once saying that he will use this if the operators fail to drop their costs. Probably this is the time...this, together with NOFBI, the ministry has capacity to roll out a project like - “free internet for all”, another first from Kenya. <BR>
<BR>
Think about it.<BR>
<BR>
Harry<BR>
<BR>
On 9/23/10 2:14 PM, "Walubengo J" <<a href="jwalu@yahoo.com">jwalu@yahoo.com</a>> wrote:<BR>
<BR>
</SPAN></FONT><BLOCKQUOTE><FONT FACE="Calibri, Verdana, Helvetica, Arial"><SPAN STYLE='font-size:11pt'>Yes WHOLESALE prices are down by 80% but RETAIL prices remain relatively high. Are the ISP/Telco eating up the difference by way of SUPER-PROFITS?<BR>
<BR>
Not sure. There are multiple and intermediary variables that play between the Wholesale Level and the Retail Level that includes, but not limited to Cost of Local loops, Usage/Volume Levels, Local Content, Regulatory& Competition Environments, Charging Models, etc.<BR>
<BR>
The challenge is to get a way in which to measure and establish which of the above variables will have the biggest, positive and sustainable impact on Retail Internet pricing. Worse still, a "wrong" distortion of any of the above maybe counterproductive to the others in the long run. It requires a delicate balance of the whole ecosystem.<BR>
<BR>
But perhaps I could be wrong..<BR>
<BR>
<BR>
walu.<BR>
<BR>
--- On <B>Thu, 9/23/10, McTim <I><<a href="dogwallah@gmail.com">dogwallah@gmail.com</a>></I></B> wrote:<BR>
</SPAN></FONT><BLOCKQUOTE><FONT FACE="Calibri, Verdana, Helvetica, Arial"><SPAN STYLE='font-size:11pt'><BR>
From: McTim <<a href="dogwallah@gmail.com">dogwallah@gmail.com</a>><BR>
Subject: Re: [kictanet] ISPs slap Ndemo<BR>
To: <a href="jwalu@yahoo.com">jwalu@yahoo.com</a><BR>
Cc: "KICTAnet ICT Policy Discussions" <<a href="kictanet@lists.kictanet.or.ke">kictanet@lists.kictanet.or.ke</a>><BR>
Date: Thursday, September 23, 2010, 2:28 PM<BR>
<BR>
Hi,<BR>
<BR>
On Thu, Sep 23, 2010 at 11:19 AM, Edwin Onchari <<a href="eonchari@lynxbits.com">eonchari@lynxbits.com</a> <<a href="/mc/compose?to=eonchari@lynxbits.com">/mc/compose?to=eonchari@lynxbits.com</a>> > wrote:<BR>
> Yes Dennis,<BR>
><BR>
><BR>
><BR>
> Take the case of the US for instance. 1 Mb (dedicated) is going for less<BR>
> than $50…<BR>
<BR>
Wholesale cost there is ~$2.50 for 1 Mb/sec<BR>
<BR>
>in Kenya, it’s anything between $500-$800.<BR>
<BR>
Wholesale price in Kenya? Around 50 USD per Mb/sec (in Mombasa) is<BR>
what I heard recently from an industry player. That is probably for a<BR>
volume purchase of course.<BR>
<BR>
</SPAN></FONT></BLOCKQUOTE></BLOCKQUOTE><FONT FACE="Calibri, Verdana, Helvetica, Arial"><SPAN STYLE='font-size:11pt'><BR>
</SPAN><FONT COLOR="#FF8000"><SPAN STYLE='font-size:12pt'><B>African eDevelopment Resource Centre<BR>
</B></SPAN></FONT><SPAN STYLE='font-size:11pt'>eDevelopment House : : 604 Limuru Road<BR>
Old Muthaiga : : P O Box 49475 00100<BR>
Nairobi : : Kenya<BR>
T +254 20 3741646/7 : : C +254 725 650044<BR>
<BR>
<FONT COLOR="#FE7F00">Training</FONT> : : <FONT COLOR="#FE7F00">Research</FONT>: :<FONT COLOR="#FE7F00">Consultancy</FONT>: : <FONT COLOR="#FE7F00">Publishing</FONT><BR>
</SPAN></FONT>
</BODY>
</HTML>