On 26 September 2010 01:22, Muchiri Nyaggah <muchiri@semacraft.com> wrote:

The Internet is a highway (a super one even) that takes us where we want to go. I believe there's a lot of local content online, its just not very meaningful for the vast majority living at the bottom of the pyramid. People who are busy trying to put food on the table won't get on the highway to go to a place called 'Hot or Not.' It's just not meaningful. I agree with Brian, for-profit enterprises have no reason to drop prices unless it becomes necessary for their survival. It will become necessary when the current realities of doing business are modified by say, a drop in demand for the high-cost Internet they are supplying.

As long we continue focusing on content such as blog posts, YouTube videos and entertainment applications, only those with disposable income or time will be consuming it. The real fortune for ISPs (like CK Prahalad said) lies at the bottom of the pyramid but until we generate content and applications that make meaning for the masses, we may have to live with a slow drop in prices much longer than we prefer to.

Don't expect ISPs to create the content either. They are in the 'transport' business. They are lousy at creating content.

Kind regards,

Muchiri Nyaggah

Director
@muchiri
+254 722 506400

Semacraft.com

On Fri, Sep 24, 2010 at 2:36 PM, robert yawe <robertyawe@yahoo.co.uk> wrote:

Hi,

Your current ISP charges you $500 for a 1MB link from your location to his edge router, after that it is called best effort especially since most ISPs do not have bandwidth managers.

I will take this seriously and do not back down when I come to you to signup.

Regards

Robert Yawe
KAY System Technologies Ltd
Phoenix House, 6th Floor
P O Box 55806 Nairobi, 00200
Kenya

Tel: +254722511225, +254202010696

From: Agosta Liko <agostal@gmail.com>
To: robert yawe <robertyawe@yahoo.co.uk>
Cc: KICTAnet ICT Policy Discussions <kictanet@lists.kictanet.or.ke>
Sent: Fri, 24 September, 2010 10:01:06

Subject: Re: [kictanet] ISPs slap Ndemo

no Robert

1MB for 50USD ... to anywhere ... I dont get limitations from my
current providers

your thoughts ?

On Fri, Sep 24, 2010 at 10:00 AM, robert yawe <robertyawe@yahoo.co.uk> wrote:
> Hi,
> Fine, so long as it is local loop from your office to your collocation
> centre where you will be providing SaaS solutions.
> Regards
>
> Robert Yawe
> KAY System Technologies Ltd
> Phoenix House, 6th Floor
> P O Box 55806 Nairobi, 00200
> Kenya
>
> Tel: +254722511225, +254202010696
>
> ________________________________
> From: Agosta Liko <agostal@gmail.com>
> To: robert yawe <robertyawe@yahoo.co.uk>
> Cc: KICTAnet ICT Policy Discussions <kictanet@lists.kictanet.or.ke>
> Sent: Fri, 24 September, 2010 9:50:23
> Subject: Re: [kictanet] ISPs slap Ndemo
>
> 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.
>>
>> Robert Yawe
>> KAY System Technologies Ltd
>> Phoenix House, 6th Floor
>> P O Box 55806 Nairobi, 00200
>> Kenya
>>
>> Tel: +254722511225, +254202010696
>>
>> ________________________________
>> 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.
>>>
>>> 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
>>>
>>> _______________________________________________
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>>>
>>> This message was sent to: blongwe@gmail.com
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>>>
>>> --
>>> Brian Munyao Longwe
>>> e-mail: blongwe@gmail.com
>>> cell: + 254 722 518 744
>>> blog : http://zinjlog.blogspot.com
>>> meta-blog: http://mashilingi.blogspot.com
>>>
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>>> Checked by AVG - www.avg.com
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>>> 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
>>
>>
>> _______________________________________________
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>> kictanet@lists.kictanet.or.ke
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>>
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>>
>
>

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