Dear lusters, The price of 1MB in Kenya range from Ksh.1,450 to Ksh. 36,000. To realign this kind of range requires consumer power. In a liberalized economy the Government cannot be the one telling you who your vendor should be. In other countries consumers flock on to the cheapest offer forcing the competitors to react. I have seen Kenyans purchase more expensive fuel when they could pay cheaper across the road. Similarly, in broadband Kenyans want the price to be reduced where they started their Internet life. This our uniqueness or peculiarities. Consumers have power and let us use it effectively. Ndemo.
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....
Brian
On Thu, Sep 23, 2010 at 3:48 PM, Edwin Onchari <eonchari@lynxbits.com>wrote:
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 UKs 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!
Edwin
*Sales without Customer Service**........**is like stuffing money into a pocket full of holes.* DAVID TOOMA
*From:* Brian Munyao Longwe [mailto:blongwe@gmail.com] *Sent:* Thursday, September 23, 2010 4:20 PM *To:* Edwin Onchari
*Cc:* KICTAnet ICT Policy Discussions *Subject:* Re: [kictanet] ISPs slap Ndemo
Hi all,
Is this another case of "naomba serikali inisaidie" - which is to typical of us Kenyans....
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?
I think Walu is asking the right kinds of questions - how do we adjust the supply/demand equation to bring about the desired results?
In my honest opinion government has been doing a good job of staying out of business - let's keep it that way.
Regards,
Brian
On Thu, Sep 23, 2010 at 2:16 PM, Edwin Onchari <eonchari@lynxbits.com> wrote:
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
Edwin
*Sales without Customer Service........is like stuffing money into a pocket full of holes.* DAVID TOOMA
*From:* kictanet-bounces+eonchari=lynxbits.com@lists.kictanet.or.ke[mailto: kictanet-bounces+eonchari <kictanet-bounces%2Beonchari>=lynxbits.com@ lists.kictanet.or.ke] *On Behalf Of *Harry Hare *Sent:* Thursday, September 23, 2010 2:35 PM *To:* Edwin
*Cc:* KICTAnet ICT Policy Discussions
*Subject:* Re: [kictanet] ISPs slap Ndemo
Hello All,
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.
Think about it.
Harry
On 9/23/10 2:14 PM, "Walubengo J" <jwalu@yahoo.com> wrote:
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?
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.
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.
But perhaps I could be wrong..
walu.
--- On *Thu, 9/23/10, McTim <dogwallah@gmail.com>* wrote:
From: McTim <dogwallah@gmail.com> Subject: Re: [kictanet] ISPs slap Ndemo To: jwalu@yahoo.com Cc: "KICTAnet ICT Policy Discussions" <kictanet@lists.kictanet.or.ke> Date: Thursday, September 23, 2010, 2:28 PM
Hi,
On Thu, Sep 23, 2010 at 11:19 AM, Edwin Onchari <eonchari@lynxbits.com < /mc/compose?to=eonchari@lynxbits.com<http://mc/compose?to=eonchari@lynxbits.com>>
wrote: Yes Dennis,
Take the case of the US for instance. 1 Mb (dedicated) is going for less than $50
Wholesale cost there is ~$2.50 for 1 Mb/sec
in Kenya, its anything between $500-$800.
Wholesale price in Kenya? Around 50 USD per Mb/sec (in Mombasa) is what I heard recently from an industry player. That is probably for a volume purchase of course.
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