This is a different debate about the banking system .. If you ask
me, protection of the banks caused and will continue to cause a problem.
Let us stick to simple products like IP …. At least this can’t
be borrowed or bubbled ..
As a X-Mas Present .. What would you say if I gave DSL and
Butterfly for free for December?
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: Monday, November 30, 2009 16:40
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
On 30 Nov 2009, at 06:28, Crystal Watley Kigoni wrote:
Regulatory bodies are designed to ensure fair play. In the
case of Internet connectivity and pricing, the demand for services has outpaced
the production. As it stands. more bandwidth is on its way via sea and air
which will naturally make prices fall. With the landing of the cables, we have
a trickle that we are counting as a landslide. It takes time to implement
capacity. Within the next year prices will fall due to market mechanism not due
to regulatory action.
Sure but dont forget cartels sometimes are formed to keep
the status quo in competition situations. As for the markets, they have moods
which are determinant. ask yourself, why did the global financial situation not
fix itself, afterall there is still demand and supply in play?
Crystal Kigoni
Eric here
On Mon, Nov 30, 2009 at 5:59 AM, kai wulff <kai.wulff@kdn.co.ke> wrote:
Define “artificial”?
Did you divide the cost of a cable by the
“available” capacity or by the anticipated uptake?
Example:
If an A320 costs 6000 USD per flight hour
“wet” and has 120 seats, the cost per passenger seat is 50 USD
If an A380 costs 20 000 USD per flight hour
“wet” and has 800 seats, the cost per passenger seat is 25 USD
So do we say that a Tour Operator can only
sell a seat for USD 25 plus a small (and again .. What is small) margin?
What if you only fly at 10% load on your
first flight … Isn’t your cost per passenger now 250 USD …
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 22:27
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,
I
would observe the sabath by writing my last email on this subject.
I
was at the said workshop and indeed have worked on the subject extensively
prior to the announcement by the regulator and in the new story, "supply
bandwidth" is the term, otherwise i wont make an apple and oranges
analysis. At least you should credit my non-distortionist approach to this
subject.
The
situation we are dealing with is the artificial high price of bandwidth to the
continent which has held back the industry, those prices MUST come into the
realm of reality and then the forces of demand and supply would make usage and
local content the catalyst. Offcourse, education, electrification etc are all
in the value chain.
Eric
here
On
29 Nov 2009, at 19:00, kai wulff wrote:
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
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
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Crystal "Naliaka" Watley Kigoni
Voices of Africa for Sustainable Development
crystal@voicesofafrica.org
http://www.voicesofafrica.org/
"You must be the change you wish to see" - Gandhi
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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