<html><head><style type="text/css"><!-- DIV {margin:0px;} --></style></head><body><div style="font-family:'times new roman', 'new york', times, serif;font-size:12pt"><div></div><div>Hi,</div><div><br></div><div>When we talk about 1 MB for $500/- I believe we are referring to a dedicated connection with a contention ratio of 1:1 not shared provided by the ISPs of 1:<span class="Apple-style-span" style="font-family: sans-serif; line-height: 19px; "><b><big><span class="Apple-style-span" style="font-size: x-large;">∞</span><span class="Apple-style-span" style="font-size: medium;"><span class="Apple-style-span" style="font-weight: normal;">. So the ISP buys the 1 MB at $500/- dollars and sells it to 20 subscribers at $50/- a culture they developed during the good old days of satellite.</span></span></big></b></span></div><div><span class="Apple-style-span" style="font-family: sans-serif; line-height: 19px; "><big><span
class="Apple-style-span" style="font-size: medium;"><br></span></big></span></div><div><font class="Apple-style-span" face="sans-serif"><span class="Apple-style-span" style="line-height: 19px; "><span class="Apple-style-span" style="font-size: medium;">In addition the 1 MB is not from your equipment to the ISP but should be the entire route into the Internet. Exploited we still are and as has been said by many the prices have still not come down sufficiently.</span></span></font></div><div> </div>Robert Yawe<br>KAY System Technologies Ltd<br>Phoenix House, 6th Floor<br>P O Box 55806 Nairobi, 00200<br>Kenya<br><br><div>Tel: +254722511225, +254202010696<div><br></div><div style="font-family:times new roman, 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> Brian Munyao Longwe
<blongwe@gmail.com><br><b><span style="font-weight: bold;">To:</span></b> robertyawe@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> Thu, 23 September, 2010 17:21:40<br><b><span style="font-weight: bold;">Subject:</span></b> Re: [kictanet] ISPs slap Ndemo<br></font><br>I'm sorry to sound like a broken record but I don't know any ISP in Kenya selling 1Mb for >$500 - and anybody who is being extorted like this should go to a reputable ISP and get their service for tens of dollars, not hundreds....<br>
<br>Brian<br><br><div class="gmail_quote">On Thu, Sep 23, 2010 at 3:48 PM, Edwin Onchari <span dir="ltr"><<a rel="nofollow" ymailto="mailto:eonchari@lynxbits.com" target="_blank" href="mailto:eonchari@lynxbits.com">eonchari@lynxbits.com</a>></span> wrote:<br><blockquote class="gmail_quote" style="border-left:1px solid rgb(204, 204, 204);margin:0pt 0pt 0pt 0.8ex;padding-left:1ex;">
<div lang="EN-US">
<div>
<p class="MsoNormal"><span style="font-size:11pt;color:rgb(31, 73, 125);">“naomba serikali” or not…government policies
ultimately affect demand and supply laws in any market. While the call here is
not to go the Finish way of making it a right for all citizens to have access
to 1Mb of broadband by 2015, or UK’s 2Mb, GOK can move to create an
environment that will encourage our good ISPs lower the current rates,
currently >$500- remember, the potential bulk users in Kenya earn
<$1/day!</span></p><div class="im">
<p class="MsoNormal"><span style="font-size:11pt;color:rgb(31, 73, 125);"> </span></p>
<p class="MsoNormal"><span style="font-size:10pt;color:rgb(31, 73, 125);">Edwin</span><span style="font-size:11pt;color:rgb(31, 73, 125);"></span></p>
<p class="MsoNormal"><span style="font-size:11pt;color:rgb(31, 73, 125);"> </span></p>
<p class="MsoNormal"><i><span style="font-size:10.5pt;color:rgb(0, 0, 153);">Sales without Customer Service</span></i><i><span style="font-size:10.5pt;color:rgb(0, 0, 153);">........</span></i><i><span style="font-size:10.5pt;color:rgb(0, 0, 153);">is
like stuffing money into a pocket full of holes.</span></i><span style="font-size:10.5pt;color:rgb(0, 0, 153);"><br>
</span><span style="font-size:10.5pt;color:rgb(0, 0, 153);">DAVID TOOMA</span><span style="font-size:11pt;color:rgb(0, 0, 153);"></span></p>
<p class="MsoNormal"><span style="font-size:11pt;color:rgb(31, 73, 125);"> </span></p>
</div><div style="border-style:solid none none;border-color:rgb(181, 196, 223);border-width:1pt medium medium;padding:3pt 0in 0in;">
<p class="MsoNormal"><b><span style="font-size:10pt;">From:</span></b><span style="font-size:10pt;"> Brian Munyao Longwe
[mailto:<a rel="nofollow" ymailto="mailto:blongwe@gmail.com" target="_blank" href="mailto:blongwe@gmail.com">blongwe@gmail.com</a>] <br>
<b>Sent:</b> Thursday, September 23, 2010 4:20 PM<br>
<b>To:</b> Edwin Onchari</span></p><div><div></div><div class="h5"><br>
<b>Cc:</b> KICTAnet ICT Policy Discussions<br>
<b>Subject:</b> Re: [kictanet] ISPs slap Ndemo</div></div>
</div><div><div></div><div class="h5">
<p class="MsoNormal"> </p>
<p class="MsoNormal" style="margin-bottom:12pt;">Hi all,<br>
<br>
Is this another case of "naomba serikali inisaidie" - which is to typical
of us Kenyans....<br>
<br>
It is my firm belief that we have a free and open market for internet services
in Kenya - with little or no barriers to entry for any player. Could it just be
that the rules of supply and demand are applying and thereby preventing the
"drastic" drops in pricing that it seems many of use are dreaming
about?<br>
<br>
I think Walu is asking the right kinds of questions - how do we adjust the
supply/demand equation to bring about the desired results?<br>
<br>
In my honest opinion government has been doing a good job of staying out of
business - let's keep it that way.<br>
<br>
Regards,<br>
<br>
Brian</p>
<div>
<p class="MsoNormal">On Thu, Sep 23, 2010 at 2:16 PM, Edwin Onchari <<a rel="nofollow" ymailto="mailto:eonchari@lynxbits.com" target="_blank" href="mailto:eonchari@lynxbits.com">eonchari@lynxbits.com</a>> wrote:</p>
<div>
<div>
<p class="MsoNormal"><span style="font-size:11pt;color:rgb(31, 73, 125);">Better yet, GOK should slice up its 40%
stake and sell to smaller businesses that are willing to play ball, so that
Kenyans are not at the mercy of a handful ISPs that cannot get their act
together</span></p>
<p class="MsoNormal"><span style="font-size:11pt;color:rgb(31, 73, 125);"> </span></p>
<div>
<p class="MsoNormal"><span style="font-size:10pt;color:rgb(31, 73, 125);">Edwin</span></p>
<p class="MsoNormal"><span style="font-size:11pt;color:rgb(31, 73, 125);"> </span></p>
<p class="MsoNormal"><i><span style="font-size:10.5pt;color:rgb(0, 0, 153);">Sales without Customer Service........is
like stuffing money into a pocket full of holes.</span></i><span style="font-size:10.5pt;color:rgb(0, 0, 153);"><br>
DAVID TOOMA</span></p>
</div>
<p class="MsoNormal"><span style="font-size:11pt;color:rgb(31, 73, 125);"> </span></p>
<div>
<div style="border-style:solid none none;border-width:1pt medium medium;padding:3pt 0in 0in;">
<p class="MsoNormal"><b><span style="font-size:10pt;">From:</span></b><span style="font-size:10pt;">
kictanet-bounces+eonchari=<a rel="nofollow" target="_blank" href="http://lynxbits.com">lynxbits.com</a>@<a rel="nofollow" target="_blank" href="http://lists.kictanet.or.ke">lists.kictanet.or.ke</a>
[mailto:<a rel="nofollow" ymailto="mailto:kictanet-bounces%2Beonchari" target="_blank" href="mailto:kictanet-bounces%2Beonchari">kictanet-bounces+eonchari</a>=<a rel="nofollow" target="_blank" href="http://lynxbits.com">lynxbits.com</a>@<a rel="nofollow" target="_blank" href="http://lists.kictanet.or.ke">lists.kictanet.or.ke</a>] <b>On
Behalf Of </b>Harry Hare<br>
<b>Sent:</b> Thursday, September 23, 2010 2:35 PM<br>
<b>To:</b> Edwin</span></p>
<div>
<p class="MsoNormal"><span style="font-size:10pt;"><br>
<b>Cc:</b> KICTAnet ICT Policy Discussions</span></p>
</div>
<div>
<div>
<p class="MsoNormal"><b><span style="font-size:10pt;">Subject:</span></b><span style="font-size:10pt;"> Re: [kictanet] ISPs slap Ndemo</span></p>
</div>
</div>
</div>
</div>
<div>
<div>
<p class="MsoNormal"> </p>
<p class="MsoNormal" style="margin-bottom:12pt;"><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 rel="nofollow" target="_blank" href="http://jwalu@yahoo.com">jwalu@yahoo.com</a>> wrote:</span></p>
<p class="MsoNormal"><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 rel="nofollow" target="_blank" href="http://dogwallah@gmail.com">dogwallah@gmail.com</a>></i></b> wrote:</span></p>
<p class="MsoNormal" style="margin-bottom:12pt;"><span style="font-size:11pt;"><br>
From: McTim <<a rel="nofollow" target="_blank" href="http://dogwallah@gmail.com">dogwallah@gmail.com</a>><br>
Subject: Re: [kictanet] ISPs slap Ndemo<br>
To: <a rel="nofollow" target="_blank" href="http://jwalu@yahoo.com">jwalu@yahoo.com</a><br>
Cc: "KICTAnet ICT Policy Discussions" <<a rel="nofollow" target="_blank" href="http://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 rel="nofollow" target="_blank" href="http://eonchari@lynxbits.com">eonchari@lynxbits.com</a>
<<a rel="nofollow" target="_blank" href="http://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.</span></p>
<p class="MsoNormal"><span style="font-size:11pt;"><br>
</span><b><span style="color:rgb(255, 128, 0);">African eDevelopment Resource Centre<br>
</span></b><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>
<span style="color:rgb(254, 127, 0);">Training</span> : : <span style="color:rgb(254, 127, 0);">Research</span>:
:<span style="color:rgb(254, 127, 0);">Consultancy</span>: : <span style="color:rgb(254, 127, 0);">Publishing</span></span></p>
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<br>
-- <br>
Brian Munyao Longwe<br>
e-mail: <a rel="nofollow" ymailto="mailto:blongwe@gmail.com" target="_blank" href="mailto:blongwe@gmail.com">blongwe@gmail.com</a><br>
cell: + 254 722 518 744<br>
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</blockquote></div><br><br clear="all"><br>-- <br>Brian Munyao Longwe<br>e-mail: <a rel="nofollow" ymailto="mailto:blongwe@gmail.com" target="_blank" href="mailto:blongwe@gmail.com">blongwe@gmail.com</a><br>cell: + 254 722 518 744<br>blog : <a rel="nofollow" target="_blank" href="http://zinjlog.blogspot.com">http://zinjlog.blogspot.com</a><br>
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