thanks Kai for the response, we need many people responding to this issue, in my opinion, the government should find a way of using the WB money through the private sector, so that the private sector does not see as if the government is competing and killing the profit margin, in this regard, the government could come up with some MOU with the private sector so that some of the money invested is government's and some PS. that way, part of the profits will be ploughed back (it will be mandatory) i remember during the OFC workshop, Kai shared how IFC funded a private secotor consortium to carry out some survey at USD 300k and a similar survey carried out by govts was valued at USD 3m maybe this can help reduce costs and provide a way for govt and PS to work together and deliver quality market services, develop the content and all.. its just an opinion, its not absolute, lets hear as many voices as possible, it is at these forums/discussions that great ideas come up, regards Kai Wulff <kai.wulff@kdn.co.ke> wrote: Hello, we leave it to the ISPs to create the demand. We were hoping that with our rural initiatives, like connecting schools and showing them how to educate the parents (and make money with this) will increase the demand on a natural way. What we have seen wit some Rural BTS, it takes about 12 month until it is break even ... The problem is when you create the demand and then some World Bank money starts to compete before you can recover the cost. It is my strong believe that wherever a device can be operated, there WILL be a market. The private sector needs the Government as a user there as well as the private companies and consumers. Only then will the prices drop! We still focus too much on the INTERNET, what most people need for a start is LOCAL information and communication .. so I would say: 90% local IP traffic and 10% international .. Kai ----- Original Message ----- From: "Joan Walumbe" To: Sent: Thursday, May 03, 2007 10:26 Subject: Re: [kictanet] Day 5 - Statistics on Affordability - CCKInternetStudy Report
Walu,
I agree with you that affordablity is a factor especially for rural communities when it comes to access to the internet. But I think that lack of awareness is an even bigger factor. It's fine for the urban folk (who already recognise the benefits to the internet etc.) taking a short break in shags to have the internet access when back home, but it there is no demand for the internet among the residents what is the point?
So does KDN enter a market and then hope to create demand or is their a market that demands the service or is it a little of both?
I understand that Kai would not be venturing into the rural areas if it did not make any financial sense. Can anyone provide some info/statistics on demand for internet access in rural areas?
Joan Walumbe
----- Original Message ----- From: "John Walubengo" To: Sent: Thursday, May 03, 2007 9:01 AM Subject: [kictanet] Day 5 - Statistics on Affordability - CCK InternetStudy Report
Day 5- Statistics on Affordability.
I acknowledge an interesting thread filtering in on Trust relationships b/w IGOs/ISPs...feel free to continue contributing on that as well as on today's theme on affordability (multi-tasking encouraged by internet technologies ...)
and just to pick up from Kai's projection of KDN fiber hitting Bungoma in early August 2007. This would be quite a welcome and timely development, but at what cost to the consumer? To what extend will the (internet) services be affordable to the rural/average communities?
Affordability is a subjective term gven that what is considered cheap by the Bill Gates of this world is probably not so for the average Kenyan on the street. In trying to get an objective measurement for affordability, the Report pegged it on the national average incomes. In other words, if the monthly average income in Kenya is around 100USD and if the average monthly cost for internet access is also around 100USD then obviously the average Kenyan will not bother with accessing the Internet - it just becomes way beyond their means or too expensive or not affordable.
The report indicated that access through the more convenient Internet Dial-up/Desktop services costed over 200% the average incomes (too expensive), while the same access through mobile phones was costing just 8% of the average incomes (quite affordable). What needs to be done in order to make Internet Services more afforable to Kenyans?
1 day deliberation on this one.
walu.
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