As mentioned, the price on fiber is a function of usage. The current prices
are moving downwards. If we had more users (maybe even the Government using
it), we could reduce further ..
networks. You are very right on the Government's involvement. This is
the model that was followed by Sweden and as Alice noted, Malaysia. To be
expectations. Check Mombasa Nairobi Fibre link where the prices are still
over the roof yet there are two players there. Does anyone need reason
Our private sector must embrace low prices but high volume concept. Think
of the idle capacity that lay on the route yet there is business.
Bitange Ndemo.
Looks like we are looking to issues around the last mile for which a whole
mesh of possibilities, actors and services must be considered, planned for
and provided. If monopolies continue, forget lower prices and
affordability!
The governemnt is right in looking to provide the super
highway and so it
ought. And in doing so it is in its purview to take any loans from any
development banks that it can get and at reasonably low interest rates. My
only concern is that the AfDB is nowhere in sight or is it? With such high
ROI on th continent from ICT investments as I am told where is the AfDB
playing? Some one pls tell me or indeed the national dev banks? Are they
any to speak of?
O just for news; the Nigerian ICT community is celebrating the hand over
of managemnt of the top level domain name .ng to nigerians!
Cheers from hot and humid Lagos,
FE
----- Original Message ----
Sent: Monday, 7 May, 2007 11:08:31 AM
Subject: Re: [kictanet] Day 5 - Statistics on Affordability-
CCKInternetStudyReport
Dear all
Talking about government's engagement in infrastructure development, the
Malaysian government, for example was one of the first to attempt to
replicate the Silicon Valley model in a developing country. "In its
attempt to move the ICT sector to attract domestic and foreign private
investment, the Malaysian government invested in creating a world class
physical and information infrastructure. Called the Multimedia Super
Corridor, this USD 40 billion initiative now serves as the backbone for
the country's information superhighway. The network is supported by a
high-speed link, which connects to Japan, ASEAN, the US and Europe. The
network is also capable of supporting extensive public, education and
business applications". Beyond infrastructure, the Malaysian government
provides attractive tax incentives for world-class technology-led
companies to participate in the MSC initiative. And most importantly, it
launched actions to provide a well-educated work force with relevant
skill levels ranging from technical to research.
I see nothing wrong with the Kenya government investing in
infrastructure for public good, while private sector supporting this
venture by perhaps focusing on the infrastructure as well, technology
aspect, content, applications, skills, civil society assisting by
ensuring there is demand at the local/rural level, etc
The idea here being partnerships. We do seriously need to consider
strategies for partnerships, which would involve leveraging the creative
potential of the different actors, allowing them to work on the basis of
both established as well as new roles and responsibilities. That implies
sharing of resources and responsibilities (sharing not shifting risks).
For this to happen there is need to ensure that there is sufficient
mutual respect and trust between partners to enable them to work together.
(The above comments are is entirely personal and do not reflect any
position of the organisations I am affiliated with)
alice
Kai U. Wulff wrote:
Well,
If you tender the capacity you require in Garissa, we will quote a price
and
commit a deployment of fiber.
Kai
-----Original Message-----
Of
Sent: Monday, May 07, 2007 18:10
Subject: Re: [kictanet] Day 5 - Statistics on Affordability-
CCKInternetStudyReport
Dear All,
Please do not be misled. The Government will never compete with
anybody.
All that is being done is to develop a platform where big and small can
reasonably compete. I think Kai is confusing Telkom projects and
Government infrastructure projects. If the private sector indeed wanted
to do infrastructure projects they will have done so but most private
sector have to have a business case first. I wonder why Kai did not do
the Garisa route first before heading to Uganda. Please understand that
Government has the obligation to provide infrastructure.
Regards
Bitange Ndemo.
My point is:
Yu have limited room for infrastructure since the cost is constant and
only
increased usage can drop the price. The Government should NOT be a
competitor but a price sensitive user!
You will have enough people now competing for the business of the
Government
and the private users .. That forces prices down. Having a state owned
cable
or a state owned Telkom is in my opinion not the way forward.
Rgds
Kai
-----Original Message-----
Of
Wainaina Mungai
Sent: Saturday, May 05, 2007 10:35
Subject: Re: [kictanet] Day 5 - Statistics on Affordability-
CCKInternetStudyReport
Kai said;
The problem is when you create the demand and then some World Bank
money
starts to compete before you can recover the cost..
...The private sector needs the Government as a user there as well as
the
private companies and consumers. [Only then will the prices drop!]
Pricing
I would like to assume that competition from government is as good as
competition from other market players. The beauty of competition is in
the
way it forces the private sector to put a smile on the face of every
consumer ;-) so as to guarantee revenue. I am convinced that a
significant
drop in prices results only from fierce competition and some degree of
regulation. TESPOK and others fought for years to introduce competition
which resulted in the current lower prices of internet and telephony
services.
The recent intervention of CCK on the pricing of mobile services is a
case
that proves that price controls may become necessary to protect
consumers.
For internet services, we need many 'small scale' providers whose
products
and pricing would be more market-driven and responsive to fluctuations
in
consumer needs.
For instance, an internet user paying KShs. 6,000 per month for DSL per
month is actually incurring 14 cents per minute for a 30-day month.
This
is
a great deal for any 24 hour user who may even make money through such
access to the internet. The same user would be said to incur 28 cents
per
minute if s/he were to use the link for an average 12 hours per day at
the
same monthly rate. There may be a catch here but there is a high
probability
that more businesses can survive on such low rates and pass such rates
down
to rural consumer.
---
Wainaina Mungai
SUSTAINABLE DEVELOPMENT is development that meets the needs of the
present
without compromising the ability of future generations to meet their
own
needs.
BEHALF
OF
Rebecca Wanjiku
SENT: Friday, May 04, 2007 10:23
SUBJECT: [kictanet] Day 5 - Statistics on Affordability -
CCKInternetStudyReport
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
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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Rebecca Wanjiku,
journalist,
p.o box 33515,
Nairobi.00600
Kenya.
Tel. 254 720 318 925
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