Liko, you should be TKLs customer - in todays Nation Advert, they say they have slashed their MOBILE internet retail rates by more than half. Picture this:- 400MB download ceiling @ 450Ksh(5$) compared to Safaricom for 400MB at 1000Ksh (12$). It appears TKL has no sympathisers on this list since I thought this should have been "breaking news". Or maybe users are just wiser and suspect the contention ratios (Quality) upstream may just be extremely unacceptable.. At a National level, it would be interesting to confirm if the slashed prices did significantly increase No of Internet users in the country...my bet is that it wont. Instead what might happen is that the same 4million .KE internet users will just be shuffling between the Operators(looking for a bargain). My hypothesis is that Local Content is perhaps the biggest driver/variable that can increase the no of Internet Users in the country and eventually provide sustainable lower internet rates. Lower rates without significant Local Content is like telling me the cost of going to "Kacheliba" (no offense to our beloved Minister) has just been cut down by half - and so those who had not been going there(not been online) should suddenly start getting there (and do what?)... walu. btw: meanwhile, anybody subscribe to this new TKL rate to share their experiences before we all cross over to TKL? --- On Fri, 9/24/10, Agosta Liko <agostal@gmail.com> wrote: From: Agosta Liko <agostal@gmail.com> Subject: Re: [kictanet] ISPs slap Ndemo To: jwalu@yahoo.com Cc: "KICTAnet ICT Policy Discussions" <kictanet@lists.kictanet.or.ke> Date: Friday, September 24, 2010, 10:50 AM Robert Si you start an ISP ? ... with 1:1 @ USD50 per MB ... I will be a customer Just thinking On Fri, Sep 24, 2010 at 9:44 AM, robert yawe <robertyawe@yahoo.co.uk> wrote:
Hi, When we talk about 1 MB for $500/- I believe we are referring to a dedicated connection with a contention ratio of 1:1 not shared provided by the ISPs of 1:∞. So the ISP buys the 1 MB at $500/- dollars and sells it to 20 subscribers at $50/- a culture they developed during the good old days of satellite. In addition the 1 MB is not from your equipment to the ISP but should be the entire route into the Internet. Exploited we still are and as has been said by many the prices have still not come down sufficiently.
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________________________________ From: Brian Munyao Longwe <blongwe@gmail.com> To: robertyawe@yahoo.co.uk Cc: KICTAnet ICT Policy Discussions <kictanet@lists.kictanet.or.ke> Sent: Thu, 23 September, 2010 17:21:40 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.
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