Eric,
Please read carefully what I wrote.
I have no problem with meaningful regulation .. This regulation
should focus on promoting usage ..
Your example of the Central Bank does not fit here .. The rate set
by a Central bank would in our case be the cost for which an Operator (Bank)
can buy capacity (borrows money). The Central Banks don’t regulate the
retail end ..
I mentioned before, the main tools to drive down Broadband prices
would be usage and local content.
More usage can be created by education, electrification and other
factors.
Rgds
Kai
Von: kictanet-bounces+kai.wulff=kdn.co.ke@lists.kictanet.or.ke
[mailto:kictanet-bounces+kai.wulff=kdn.co.ke@lists.kictanet.or.ke] Im
Auftrag von Eric M.K Osiakwan
Gesendet: Sunday, November 29, 2009 21:34
An: kai.wulff@kdn.co.ke
Cc: KICTAnet ICT Policy Discussions
Betreff: Re: [kictanet] NCA Board member gives its price target as an E1
for US$100-500
Kai,
The Central Bank as the regulator of the financial sector in
every economy sets prime rates and other industry indicators based on their
calculation of the market forces as they interplay with demand and supply. i
dont see why you sense danger with the regulator of the coms industry setting
"prime rate" based on the commoditized calculation.....
You generate a lot of weight in your submission below on the
private sector factors as a basis to slap the need for regulatory intervention
in a market situation that has held the industry back for a very longtime.
Am a private sector spice like you but if there is any lesson for us to
learn from the current global financial crisis, it is that, we need regulatory
interventions in the market theatre as markets have mood and are by that
extension in perfect.
My comment is, all the factors you have enumerated are great
but they dont negate the need for regulatory intervention to bring artificially
high prices down for the masses to have access, a market expansion
mechanism.
Eric here
On 29 Nov 2009, at 17:59, kai wulff wrote:
Eric,
This is exactly the type of statement that is dangerous. It is a little
bit like deflation …
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 ..
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 ..
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.
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).
Add software, overheads …..
So now, what is the cost of communication?
Currently an E1 in Kenya costs 1200 USD (not using the free offer)
list price. So we said 2 shifts, 30 days, 70% load ..
5160960 call minutes a month
That makes 0,0174 KSH per minute (took a rate of 75 to the USD) for
the submarine portion!
We add KSH 2 for termination = 2,0174 KSH communications per minute
Salaries: 1,45 KSH per minute (and this includes the idle ones or
KSH 2,08 per minute at 70%
You see the contribution of the pure Submarine portion .. It is
NEXT TO NOTHING.
Any comments?
Kai
Von: kictanet-bounces+kai.wulff=kdn.co.ke@lists.kictanet.or.ke [mailto:kictanet-bounces+kai.wulff=kdn.co.ke@lists.kictanet.or.ke] Im Auftrag von Eric M.K Osiakwan
Gesendet: Sunday, November
29, 2009 20:35
An: kai.wulff@kdn.co.ke
Cc: KICTAnet ICT Policy
Discussions
Betreff: [kictanet] NCA
Board member gives its price target as an E1 for US$100-500
A two day workshop called
“Fiber Optic Undersea (Submarine) cable”, in collaboration
with West Africa Telecommunications
Regulators Assembly (WATRA), the German Technical
Group (GTZ) and also the National
Communications Authority (NCA) at the La Palm Royal Hotel.
The workshop offered WATRA 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.
A Member of the Board of
Directors of NCA, 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.
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.
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.
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”.
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.
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.
(Source: The Ghanaian Chronicle)
Eric M.K Osiakwan
Director
Internet Research
42 Ring Road Central, Accra-North
Tel: +233.21.258800 ext 7031
Fax: +233.21.258811
Cell: +233.24.4386792
Eric M.K Osiakwan
Director
Internet Research
42 Ring Road Central, Accra-North
Tel: +233.21.258800 ext 7031
Fax: +233.21.258811
Cell: +233.24.4386792