<div dir="ltr">It's also important to recognize the need for affordable Internet by businesses and organizations.<div><br></div><div>ISPs charge many times more to connect to an office building than to a residential address (presuming they're both near a POP). To some degree, this kind of price discrimination is sensible, but in Kenya, it's simply too aggressive and hinders growth.</div>
<div><br></div><div>-Adam</div></div><div class="gmail_extra"><br clear="all"><div><div dir="ltr"><div>--</div><div>Kili.io - OpenStack for Africa: <a href="http://kili.io" target="_blank">kili.io</a></div><div><span style="font-family:arial;font-size:small">Musings:<a href="https://twitter.com/varud" target="_blank"> twitter.com/varud</a></span></div>
<div><span style="font-family:arial;font-size:small">About Adam: <a href="https://www.linkedin.com/in/adamcnelson" target="_blank">www.linkedin.com/in/adamcnelson</a></span><br></div></div></div>
<br><br><div class="gmail_quote">On Thu, Oct 10, 2013 at 9:18 AM, Muriuki Mureithi <span dir="ltr"><<a href="mailto:muriukimureithi9@gmail.com" target="_blank">muriukimureithi9@gmail.com</a>></span> wrote:<br><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">
Congratulations Dr Ndemo for the appointment as the Honorary Chair in A4AI<br>
. I have worked with Sonia in the past and the two of you make a formidable<br>
team to fight a formidable battle for humanity . thanks also for driving<br>
change from where Sir Tim Bernard-lee started off .The battle lines as<br>
expressed in the write up are very clear<br>
<br>
I only have one problem with your strategy -- that build they will come as<br>
a strategy need to be re-jigged. As an example, in all countries in Africa,<br>
the signal coverage 2G/3G etc is 30-40% more than penetration , the same<br>
case for fibre - there are more homes 'passed' than connected . Cost is not<br>
the only factor affecting use, indeed empirical research for the<br>
communities that can afford the challenge is use value. Content,<br>
applications and dynamics of the demand side are very important . I would<br>
like to understand A4AI is incorporating demand side component in its<br>
strategy . The consumer should not be a passive bystander in your strategy<br>
<br>
Cheers<br>
MM<br>
<div class="im"><br>
<br>
<br>
-----Original Message-----<br>
From: kictanet<br>
[mailto:<a href="mailto:kictanet-bounces%2Bmuriukimureithi9">kictanet-bounces+muriukimureithi9</a>=<a href="mailto:gmail.com@lists.kictanet.or.ke">gmail.com@lists.kictanet.or.ke</a>] On<br>
Behalf Of Bitange Ndemo<br>
Sent: 09 October 2013 20:21<br>
To: <a href="mailto:muriukimureithi9@gmail.com">muriukimureithi9@gmail.com</a><br>
Cc: KICTAnet ICT Policy Discussions<br>
</div><div class="im">Subject: Re: [kictanet] Bringing down the cost of Internet<br>
<br>
</div><div><div class="h5">Listers,<br>
<br>
I am in Nigeria for the launch of the Global Alliance for Affordable<br>
Internet (A4AI) which I was appointed the Honorary Chair. This is a diverse<br>
and truly global coalition committed to driving down the cost of internet<br>
access in less developed countries. We believe that, while technological<br>
solutions are advancing rapidly, policy and regulations remain a significant<br>
barrier to affordable internet. A4AI seeks to create the conditions for<br>
open, competitive and innovative broadband markets through a combination of<br>
advocacy, research and knowledge-sharing. When we succeed, we will help to<br>
lower access costs to meet the UN Broadband Commission target of broadband<br>
access priced at less than 5% of monthly income, thereby helping billions<br>
more to come online and unlocking significant socio-economic benefits.<br>
<br>
Why is A4AI needed?<br>
"Estimates suggest that as much as two-thirds of the world's population is<br>
not connected to the internet, with penetration rates in less developed<br>
countries averaging around 31%. In Africa, this figure drops to 16% (while<br>
in in Kenya we are approaching 40% Liberia is at .5%) and in the world's<br>
49 least developed countries, over 90% of people are not online. (Source:<br>
ITU 2013) and (Broadband Commission 2013)<br>
<br>
"Most often, this is for affordability reasons. In developed nations, the<br>
average cost of broadband internet access is around 1-2% of monthly<br>
household income - less than a daily coffee. In less developed countries,<br>
this figure skyrockets to over 30%, and in 17 countries a basic internet<br>
connection can cost well over 100% of average monthly income. Overcoming<br>
this digital divide is critical so that technology and innovation can be<br>
harnessed to accelerate progress in areas such as education, food security,<br>
job creation, public health, and gender equity."<br>
<br>
On A4AI's goals:<br>
<br>
"Our primary focus is to reach the UN Broadband Commission Broadband Target<br>
of entry-level broadband services priced at less than 5% of average monthly<br>
income. In doing so, we hope to enable billions of people to come online<br>
(with a particular focus on low-income countries) and make universal access<br>
a reality.<br>
On Strategy:<br>
<br>
"Innovative technological solutions to affordability challenges are<br>
progressing apace. However, the best technologies in the world can't drive<br>
change if quasi-monopolies or regressive policies prevent them from being<br>
implemented. Changes to policy can deliver impressive results, fast. So,<br>
through a combination of advocacy, research and knowledge-sharing, A4AI will<br>
drive policy change by seeking to create the conditions for open,<br>
competitive and innovative broadband markets. We are unique in pursuing this<br>
approach."<br>
<br>
On Specific Activities:<br>
<br>
"A4AI is focused on creating conditions for open, competitive and innovative<br>
broadband markets via regulatory and policy change. Activities<br>
include: original research (including the publication of an annual<br>
Affordability Report); publication of regulation and policy best practices,<br>
and illustrating these via case studies; and in-country engagements<br>
including networking and knowledge-sharing. We will work closely with<br>
national governments - three to four countries in year one, expanding to 10<br>
- 12 in years two and three."<br>
<br>
How are policies keeping prices high?<br>
<br>
There are numerous examples of how policies keep prices high. Here are just<br>
a handful:<br>
. Luxury taxes: Tax accounts for more than 20% of the total cost of mobile<br>
ownership in at least 13 African countries. (Source: GSMA 2011) Tax<br>
reductions on PCs in Colombia have increased PC penetration by 100% in 2<br>
years, and Internet penetration increased 466% from 2005-2008, versus 161%<br>
across the region (source: IDC Colombia 2009).<br>
. Access to international gateway: In 8 of 20 African countries surveyed by<br>
ISOC there is little or no competition on the international gateway. In the<br>
same survey, only one of the 20 countries has fully privatized their<br>
incumbent telecoms company. In South Africa firms began deploying<br>
open-access metro fibre in 2009, and also furnished a link from Johannesburg<br>
to the SEACOM (undersea cable) landing station in order to avoid very high<br>
charges proposed by Telkom (the state-owned operator).<br>
This helped to slash international capacity prices by over 60%.<br>
. Universal Service Funds (USF) for Broadband (example of how policy can<br>
lower prices): USFs and similar subsidies improve the availability and<br>
affordability of broadband for unserved or underserved citizens.<br>
Historically focused on basic telephony services in remote areas, USFs are<br>
now being adapted to promote the adoption of broadband by subsidizing<br>
content, devices, services, and digital training, as well as infrastructure.<br>
USFs can serve as a tool to stimulate demand and increase adoption and use.<br>
<br>
About A4AI's membership base:<br>
<br>
"A4AI is a diverse coalition of over 30 private sector, public sector, and<br>
not-for-profit organizations who have come together to advance the shared<br>
aim of affordable access to both mobile and fixed-line Internet in<br>
developing countries. We are the first truly global coalition to tackle this<br>
issue and our members are from both developed and less developed nations.<br>
The World Wide Web Foundation, established by web inventor Sir Tim<br>
Berners-Lee, initiated the Alliance."<br>
<br>
1. What, exactly, will A4AI do?<br>
<br>
A4AI will undertake a blend of international advocacy and research, coupled<br>
with on-the-ground work. We'll be working in three pioneer countries by the<br>
end of 2013, and will bring together in-country stakeholders to identify<br>
obstacles, how to tackle them and we'll then help to drive implementation.<br>
We will be developing advocacy and policy proposals in conjunction with<br>
these stakeholders in each country. We will also continue to press at<br>
international level on these issues and our work will be informed by<br>
original research - with the first edition of our Annual Affordability<br>
report being released in December 2013. We'll also publish case studies,<br>
position papers and briefings on lessons learned throughout the year to<br>
share knowledge.<br>
<br>
2. What is the relationship between Internet.org and A4AI?<br>
<br>
While A4AI and Internet.org are two separate organisations, there is a<br>
common goal (in addition to common partners in Facebook and Ericsson) of<br>
making internet access available to more people around the world. A4AI has<br>
a clear focus on policy and regulatory issues surrounding access while<br>
Internet.org is focused on identifying technical innovations and new<br>
business models that can help drive down the cost of data. Wherever<br>
possible, we will we collaborate to maximise impact.<br>
<br>
<br>
Regards.<br>
<br>
<br>
Ndemo.<br>
<br>
<br>
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