Pareto law 80:20 rule when applied to the BPO sector what this means is that 80% of your business needs to be local and 20% foreign. The inverse rule we are using is what makes us uncompetitive, we say power is cheap in Egypt but that is not why their exported products are cheaper but because 80% of their business is local thus covering their overheads the 20% export business is a direct contributor to the bottom line (finance 101). Your solution is not a dark pipe to import more bandwidth but to develop local BPO clients therefore what you will be looking at is local loop connectivity which I am told costs $ 60/- for a 2 MB link from KDN. Regards Robert Yawe KAY System Technologies Ltd Phoenix House, 6th Floor P O Box 55806 Nairobi, 00200 Kenya Tel: +254722511225, +254202010696 ________________________________ From: Edwin Onchari <eonchari@lynxbits.com> To: robertyawe@yahoo.co.uk Cc: KICTAnet ICT Policy Discussions <kictanet@lists.kictanet.or.ke> Sent: Thu, 23 September, 2010 17:42:28 Subject: Re: [kictanet] ISPs slap Ndemo Lowest I know of is Simbanet at $200 (I am their client now), at least 3 of them are at $500 and the rest range from $500-800 (dedicated rates)…hence the cry. Now, our Philippines counterparts are in the range of $65-$100 – which is still relatively high. I am in the BPO sector, and I can tell you that this has over the years played to our disadvantage. If only I can get an empty fiber pipe to wherever and buy bandwidth from an international ISP (just wishing). 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 5:22 PM To: Edwin Onchari Cc: KICTAnet ICT Policy Discussions Subject: Re: [kictanet] ISPs slap 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 UK’s 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=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> > 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, it’s 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. African eDevelopment Resource Centre eDevelopment House : : 604 Limuru Road Old Muthaiga : : P O Box 49475 00100 Nairobi : : Kenya T +254 20 3741646/7 : : C +254 725 650044 Training : : Research: :Consultancy: : Publishing No virus found in this incoming message. Checked by AVG - www.avg.com Version: 8.5.445 / Virus Database: 271.1.1/3153 - Release Date: 09/22/10 18:40:00 _______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke http://lists.kictanet.or.ke/mailman/listinfo/kictanet This message was sent to: blongwe@gmail.com Unsubscribe or change your options at http://lists.kictanet.or.ke/mailman/options/kictanet/blongwe%40gmail.com -- Brian Munyao Longwe e-mail: blongwe@gmail.com cell: + 254 722 518 744 blog : http://zinjlog.blogspot.com meta-blog: http://mashilingi.blogspot.com No virus found in this incoming message. Checked by AVG - www.avg.com Version: 8.5.445 / Virus Database: 271.1.1/3153 - Release Date: 09/22/10 18:40:00 -- Brian Munyao Longwe e-mail: blongwe@gmail.com cell: + 254 722 518 744 blog : http://zinjlog.blogspot.com meta-blog: http://mashilingi.blogspot.com No virus found in this incoming message. Checked by AVG - www.avg.com Version: 8.5.445 / Virus Database: 271.1.1/3153 - Release Date: 09/22/10 18:40:00