Good point Warigia and the same applies here - CCK can and have exercised their authority to regulate voice pricing - this is especially true when there is either a monopoly or an operator with significant market share.

The same does not apply to market sectors like Internet services because there is full competition and never any player with significant market share. In the USA - FCC have never regulated Internet or bandwidth pricing as market forces generally accomplish this.

Best regards,

Brian

On Tue, Aug 18, 2009 at 11:11 AM, warigia bowman <warigia@gmail.com> wrote:
Dear colleagues 

Rates of operators can and have been regulated, In fact, in the United States we had something called rate of return regulation when ATT was a monopoly. They were allowed to charge a high rate, but in exchange, they had to ensure every tiny village of even 200 had phone service. Why can't our operators do that? 

Sincerely, Warigia

On Mon, Aug 17, 2009 at 8:40 AM, Walubengo J <jwalu@yahoo.com> wrote:
Alex,

Your have rightly qaulified your solution - as simple.  Indeed it is. Infact too simplistic to fly.  The idea that the Regulator can reign in Operators who charge "high" internet rates cannot and will not work.  Think about the in-famous SAT3 fiber link on the west coast of africa.  Ask yourself why the Regulators in Nigeria, Ghana, Cameroon, Angola, S-Africa etc have never  stepped in and revoked licensces of operators over the last 15yrs of high internet costs offered on the fiber...

The answers are very complex...I will actually be discussing these limitations and available interventions in some upcoming ICT conference at Strath University in Sept 09 and I dont want to pre-empt ;-)....

walu.


--- On Fri, 8/14/09, Gakuru Alex <alexgakuru.lists@gmail.com> wrote:

> From: Gakuru Alex <alexgakuru.lists@gmail.com>
> Subject: Re: [Skunkworks] Fwd: the long fibre lie... Ndemo should resign if internet prices do not drop as he promised!!
> To: "Skunkworks forum" <skunkworks@lists.my.co.ke>
> Date: Friday, August 14, 2009, 8:44 PM
> On Fri, Aug 14, 2009 at 7:38 PM,
> David Kiania | Asentric Consulting
> Ltd<kianiadee@gmail.com>
> wrote:
> >
> > Set the precedence what's your  solution? Am sure if
> you did we'd have
> > heard it by now. This thread is a knee jerk reaction
> to a bad internet
> > day, we all have one.
> >
>
> Simple, the entity under Ndemo's docket that grants these
> cowboy
> operators licenses puts it's foot down and warn that I may
> revoke
> licenses for operators that charge waaaay up in the sky not
> just above
> cost but ABOVE acceptable international pricing benchmarks.
> They've
> all the data they need. Imagine, for example, Safaricom on
> the verge
> of losing their license, price drops, drops, drops, drops,
> drops, and
> drops..... across board.
>
> Would this be acceptable to you?
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>





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--
Dr. Warigia Bowman
Assistant Professor
The Department of Public Policy Leadership
The University of Mississippi
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University, MS 38677

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