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.