Re: [kictanet] TEAMS and Open ended circuit
Robert, I am glad you liked the predictions I made last year about internet service costs. I am sure you might also like my suggested price-reduction mechanisms I am making this year @ http://www.strathmore.edu/pdf/ict09/affordable_ict.pdf Unfortunately nobody listens to Academicians in these parts of the world - no wonder most lecturers abandon classroom to become politicians...so that someone can listen to them ;-). What's more I get worried when I look at some of the approaches and strategies the regulator CCK has proposed as a way of containing Tariffs (including internet pricing?) from Operators (Licensees). But since I am not an Operator, I will leave it for the Operators to present their case...but they will be hard-pressed to explain whey they should not be considered biased...cant wait for that stakeholders meeting. As for the PS to apologise...he is of age to decide for himself. But he could learn from that Politician who had promised us a Constitution in 100days. He didnt deny it - he just clarified that the days were not consecutive days ;-). And so it is the same with the internet costs. Prices will indeed come down as promised. But obviously not tomorrow. regards. walu. --- On Thu, 10/8/09, robert yawe <robertyawe@yahoo.co.uk> wrote: From: robert yawe <robertyawe@yahoo.co.uk> Subject: Re: [kictanet] TEAMS and Open ended circuit To: "Walubengo J" <jwalu@yahoo.com> Cc: "KICTAnet ICT Policy Discussions" <kictanet@lists.kictanet.or.ke> Date: Thursday, October 8, 2009, 12:27 PM Hi, I finally got a chance to look through the presentation you sent me concerning the marine cable issue, which was comprehensive. My suggestion is that you call all the ISPs and give them this presentation so that they can stop, once and for all, passing the buck for failing the Nation and keeping us in the stone age of connectivity. From the presentation it is clear that the marine cable on its own was not the panacea for high internet charges and slow connectivity, we did not understand that the model for Internet access in the US cannot be applied in countries outside that continent as the bulk of the content is resident in the US . For a long time, over 12 years ago when I wrote an article for an IT magazine that was called Micro Computer Guide, I was called the village madman for advocating about the need to develop local content. I was incensed by the action by the then Karisa Communications (Makatiani & Ngeno) later AfricaOnline to shut down their bulleting board based service to provide us with the so called Internet connection yet we where on the right track as we created local content out of necessity. Today I believe I stand exonerated as ISP’s finally confirm that the marine cable is not going to bring down the cost of Internet access, you wonder why we have wasted the past 3 years singing its praises. I say PS Ndemo, in his personal capacity and on behalf of all the agencies under his ministry (ICT board, e-government, CCK & other), owes the country an apology for taking us on a wild goose chase. PS Ndemo the creation of local content falls smack in your docket and I have said this before all the government has to do is digitize all those reports in their possession beginning with the constitution, sessional papers, census, exam results, list of village polytechnics and the presidents diary then we can all move from their. Again thanks Walubengo. Robert Yawe KAY System Technologies Ltd Phoenix House, 6th Floor P O Box 55806 Nairobi, 00200 Kenya Tel: +254722511225, +254202010696 --- On Fri, 2/10/09, Walubengo J <jwalu@yahoo.com> wrote: From: Walubengo J <jwalu@yahoo.com> Subject: Re: [kictanet] TEAMS and Open ended circuit To: robertyawe@yahoo.co.uk Cc: "KICTAnet ICT Policy Discussions" <kictanet@lists.kictanet.or.ke> Date: Friday, 2 October, 2009, 8:32 AM McTim, Kai, I can bet you have confused more than shedding light on this issue. But I cant blame you. It's not something one can explain in two or three emails. Typcially its a full-semester course issue... but here could be some highlights. http://www.strathmore.edu/pdf/ictc-08/internet-interconnection-model.pdf walu. --- On Fri, 10/2/09, McTim <dogwallah@gmail.com> wrote:
consume.
McTim
_______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke http://lists.kictanet.or.ke/mailman/listinfo/kictanet This message was sent to: robertyawe@yahoo.co.uk Unsubscribe or change your options at http://lists.kictanet.or.ke/mailman/options/kictanet/robertyawe%40yahoo.co.u...
Why has KDN been able to lower their Internet prices by 90%? Is it that they do not have 25 year contracts with the satellite companies that are holding us hostage? Walubengo J wrote:
KDN had about 1000Mbps on Sat with contracts that were month to month. We retained approx. 250Mbps for redundancy (we could have dropped it but decided we need a plan B just in case). I don’t think that anybody can hold us hostage … 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 S.Murigi Muraya Gesendet: Friday, October 09, 2009 00:02 An: kai.wulff@kdn.co.ke Cc: KICTAnet ICT Policy Discussions Betreff: Re: [kictanet] TEAMS and Open ended circuit Why has KDN been able to lower their Internet prices by 90%? Is it that they do not have 25 year contracts with the satellite companies that are holding us hostage? Walubengo J wrote: Robert, I am glad you liked the predictions I made last year about internet service costs. I am sure you might also like my suggested price-reduction mechanisms I am making this year @ http://www.strathmore.edu/pdf/ict09/affordable_ict.pdf Unfortunately nobody listens to Academicians in these parts of the world - no wonder most lecturers abandon classroom to become politicians...so that someone can listen to them ;-). What's more I get worried when I look at some of the approaches and strategies the regulator CCK has proposed as a way of containing Tariffs (including internet pricing?) from Operators (Licensees). But since I am not an Operator, I will leave it for the Operators to present their case...but they will be hard-pressed to explain whey they should not be considered biased...cant wait for that stakeholders meeting. As for the PS to apologise...he is of age to decide for himself. But he could learn from that Politician who had promised us a Constitution in 100days. He didnt deny it - he just clarified that the days were not consecutive days ;-). And so it is the same with the internet costs. Prices will indeed come down as promised. But obviously not tomorrow. regards. walu. --- On Thu, 10/8/09, robert yawe <mailto:robertyawe@yahoo.co.uk> <robertyawe@yahoo.co.uk> wrote: From: robert yawe <mailto:robertyawe@yahoo.co.uk> <robertyawe@yahoo.co.uk> Subject: Re: [kictanet] TEAMS and Open ended circuit To: "Walubengo J" <mailto:jwalu@yahoo.com> <jwalu@yahoo.com> Cc: "KICTAnet ICT Policy Discussions" <mailto:kictanet@lists.kictanet.or.ke> <kictanet@lists.kictanet.or.ke> Date: Thursday, October 8, 2009, 12:27 PM Hi, I finally got a chance to look through the presentation you sent me concerning the marine cable issue, which was comprehensive. My suggestion is that you call all the ISPs and give them this presentation so that they can stop, once and for all, passing the buck for failing the Nation and keeping us in the stone age of connectivity.
From the presentation it is clear that the marine cable on its own was not the panacea for high internet charges and slow connectivity, we did not understand that the model for Internet access in the US cannot be applied in countries outside that continent as the bulk of the content is resident in the US .
For a long time, over 12 years ago when I wrote an article for an IT magazine that was called Micro Computer Guide, I was called the village madman for advocating about the need to develop local content. I was incensed by the action by the then Karisa Communications (Makatiani & Ngeno) later AfricaOnline to shut down their bulleting board based service to provide us with the so called Internet connection yet we where on the right track as we created local content out of necessity. Today I believe I stand exonerated as ISP’s finally confirm that the marine cable is not going to bring down the cost of Internet access, you wonder why we have wasted the past 3 years singing its praises. I say PS Ndemo, in his personal capacity and on behalf of all the agencies under his ministry (ICT board, e-government, CCK & other), owes the country an apology for taking us on a wild goose chase. PS Ndemo the creation of local content falls smack in your docket and I have said this before all the government has to do is digitize all those reports in their possession beginning with the constitution, sessional papers, census, exam results, list of village polytechnics and the presidents diary then we can all move from their. Again thanks Walubengo. Robert Yawe KAY System Technologies Ltd Phoenix House, 6th Floor P O Box 55806 Nairobi, 00200 Kenya Tel: +254722511225, +254202010696 --- On Fri, 2/10/09, Walubengo J <mailto:jwalu@yahoo.com> <jwalu@yahoo.com> wrote: From: Walubengo J <mailto:jwalu@yahoo.com> <jwalu@yahoo.com> Subject: Re: [kictanet] TEAMS and Open ended circuit To: robertyawe@yahoo.co.uk Cc: "KICTAnet ICT Policy Discussions" <mailto:kictanet@lists.kictanet.or.ke> <kictanet@lists.kictanet.or.ke> Date: Friday, 2 October, 2009, 8:32 AM McTim, Kai, I can bet you have confused more than shedding light on this issue. But I cant blame you. It's not something one can explain in two or three emails. Typcially its a full-semester course issue... but here could be some highlights. http://www.strathmore.edu/pdf/ictc-08/internet-interconnection-model.pdf walu. --- On Fri, 10/2/09, McTim <dogwallah@gmail.com> wrote:
_______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke http://lists.kictanet.or.ke/mailman/listinfo/kictanet This message was sent to: robertyawe@yahoo.co.uk Unsubscribe or change your options at http://lists.kictanet.or.ke/mailman/options/kictanet/robertyawe%40yahoo.co.u... _____ _______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke http://lists.kictanet.or.ke/mailman/listinfo/kictanet This message was sent to: murigi.muraya@gmail.com Unsubscribe or change your options at http://lists.kictanet.or.ke/mailman/options/kictanet/murigi.muraya%40gmail.c...
Hi, its the techie and a non-stake holder. I'd like to add a contribution to the subject. Regarding the costs of internet dropping, a short summary. There is much more to the scenario than being let out by Service Providers. *Consider Teams :* - Mombasa to Fujiarah is a technically known as a Half Circuit. Half Circuits are cost reduction methods and have been in use in as early systems such as International Private Leased Circuits or IPLCs. The concept works very well and the Govt initiative got it right. However others may seem to exploit this scenario. Assuming that the one time cost of the fiber cable between the 2 points ( Mombasa to Fujiarah ) was USD 130 million and the cable capacity was 40Gbits/sec, therefore the cost of *1 Mbit/s is about 3.25 USD on the half circuit*. Because the cable is *OWNED not LEASED on a monthly basis*, Teams players get much cheaper cost bandwidth than compared to Seacom cable on the same route as it is leased. So the concept of cheaper bandwidth was spot on using a half circuit when the Govt initiative was done i.e that is how I understood it to be. *Now comes forward connectivity*. Because of the main landing stations at Fujiarah for other cable operators which are major transit inter-continental points for bulk purchasers like telcos who may even take up STM-16 capacities, players on Teams may be able to get 10-25USD per 1 Mbit/sec. Bandwidth costs at these points has always been cheap, the problem was that no one wanted to bring that connectivity to this part of Africa. Seacom is a much longer and bigger project thus its costs for a 20 year commitment on the capacity is around 80-90USD Per 1 Mbit/Sec of bandwidth. ( IRUs ) So once more, costs to Teams players is around 30USD per 1 Mbit of capacity on an IRU form Fujiarah onwards. Add the maintainence of the cable and costs go up. I'd estimate that the maximum cost is around 60USD per 1 Mbit/Sec of bandwidth for bulk purchasers. KDN was offering Seacom @600USD/Mbit as early as 1st week of August 2009, Safaricom had already done the move to Seacom within days of it going live and was offering similar via its other company OneCom. As soon as time become available, I shall do a simple analysis of the costs inland and list them here. Service Providers are holding back due to other reasons. *Solution :* - I believe one major solution that is going to activate the price drops is for CCK to introduce a Virtual ISP license with an annual monthly fee of Kshs 10,000/-. VISPs do not own or operate any infrastructure. They would operate a customer support base and would be able to buy the cheaper bandwidth eg from KDN on Seacom/teams or Safaricom OneCom Seacom/teams and pass the reductions to the end users. I think this avenue should be looked into. *Content:* - Content is something waiting to happen and there are many examples. As I mentioned on another list, take the example of Kenya National Museums and convert this into online catalogue content for use by Kenyan Schools and many others who use the internet. To create a virtual experience would be an achievement. If no one has done this within the next 24 months, then I hope some of us will get to it and move it to a newer level. ( Not advertising nor marketing here and its a techie thing, but some of us have setup a site like a notice board where we share what projects are in the pipeline : www.projectkenya.info ) My amatuer thought, corrections are welcome. Rgds.
My apology, site is www.projectskenya.info . Rgds.
Aki, a word from the economist .. You cannot divide the cost of a system by the capacity one has ... You have to divide the cost by the capacity that can be sold .. Let's assume we sell in the first year 10Gbps of the TEAMS capacity (jointly between all operators) and the investors want to have at least the return anybody expects from injected cash (I am taking the yields of the latest Infrastructure Bond as benchmark). So: 130M USD to be returned in 5 years 1st year = 26 000 000 USD + 4% OaM = 31 200 000 USD That makes per Mbps and month 260 USD If we say we can sell 20Gbps then it would be 130 USD ... Let me stick to 10 for now .. Cross Connection in Fujeira between the TEAMS Landing and the SMW4 Landing on lease for 4 x STM16 = 200 000 USD per month = 20 USD per Mbps and month Onward Capacity from U.A.E. to London per STM16 approx. 150 000 USD per month = USD 60 per Mbps Add USD 20 per Mbps for all peering and hosting charges in London and you will have: USD 360 per Mbps and month ... This case assumes the 4 x STM16 are sold from day 1 in full .. Surely we can assume a straight line take-up that might peak in even 20Gbps after 12 month, then the first year will still be as above. The second year would be in the range of 210 - 230 USD ..... All the above is calculating 0 overheads at the operator's level .. No magic .. Just math .. Rgds Kai ----- Original Message ----- From: aki To: kai.wulff@kdn.co.ke Cc: KICTAnet ICT Policy Discussions Sent: Friday, October 09, 2009 6:55 AM Subject: Re: [kictanet] TEAMS and Open ended circuit Hi, its the techie and a non-stake holder. I'd like to add a contribution to the subject. Regarding the costs of internet dropping, a short summary. There is much more to the scenario than being let out by Service Providers. Consider Teams : - Mombasa to Fujiarah is a technically known as a Half Circuit. Half Circuits are cost reduction methods and have been in use in as early systems such as International Private Leased Circuits or IPLCs. The concept works very well and the Govt initiative got it right. However others may seem to exploit this scenario. Assuming that the one time cost of the fiber cable between the 2 points ( Mombasa to Fujiarah ) was USD 130 million and the cable capacity was 40Gbits/sec, therefore the cost of 1 Mbit/s is about 3.25 USD on the half circuit. Because the cable is OWNED not LEASED on a monthly basis, Teams players get much cheaper cost bandwidth than compared to Seacom cable on the same route as it is leased. So the concept of cheaper bandwidth was spot on using a half circuit when the Govt initiative was done i.e that is how I understood it to be. Now comes forward connectivity. Because of the main landing stations at Fujiarah for other cable operators which are major transit inter-continental points for bulk purchasers like telcos who may even take up STM-16 capacities, players on Teams may be able to get 10-25USD per 1 Mbit/sec. Bandwidth costs at these points has always been cheap, the problem was that no one wanted to bring that connectivity to this part of Africa. Seacom is a much longer and bigger project thus its costs for a 20 year commitment on the capacity is around 80-90USD Per 1 Mbit/Sec of bandwidth. ( IRUs ) So once more, costs to Teams players is around 30USD per 1 Mbit of capacity on an IRU form Fujiarah onwards. Add the maintainence of the cable and costs go up. I'd estimate that the maximum cost is around 60USD per 1 Mbit/Sec of bandwidth for bulk purchasers. KDN was offering Seacom @600USD/Mbit as early as 1st week of August 2009, Safaricom had already done the move to Seacom within days of it going live and was offering similar via its other company OneCom. As soon as time become available, I shall do a simple analysis of the costs inland and list them here. Service Providers are holding back due to other reasons. Solution : - I believe one major solution that is going to activate the price drops is for CCK to introduce a Virtual ISP license with an annual monthly fee of Kshs 10,000/-. VISPs do not own or operate any infrastructure. They would operate a customer support base and would be able to buy the cheaper bandwidth eg from KDN on Seacom/teams or Safaricom OneCom Seacom/teams and pass the reductions to the end users. I think this avenue should be looked into. Content: - Content is something waiting to happen and there are many examples. As I mentioned on another list, take the example of Kenya National Museums and convert this into online catalogue content for use by Kenyan Schools and many others who use the internet. To create a virtual experience would be an achievement. If no one has done this within the next 24 months, then I hope some of us will get to it and move it to a newer level. ( Not advertising nor marketing here and its a techie thing, but some of us have setup a site like a notice board where we share what projects are in the pipeline : www.projectkenya.info ) My amatuer thought, corrections are welcome. Rgds. ------------------------------------------------------------------------------ _______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke http://lists.kictanet.or.ke/mailman/listinfo/kictanet This message was sent to: kai.wulff@kdn.co.ke Unsubscribe or change your options at http://lists.kictanet.or.ke/mailman/options/kictanet/kai.wulff%40kdn.co.ke
Dear Kai, Thank you for the clarifications, it is a big help on cost implications. I hope the VISP scenario will create more uptake of purchased capacity allowing for lower pricing at landing stations to become cheaper. I think it would be even nicer to do some math which ISPs are not passing on. I hope to list it soon and corrections are welcome. Rgds. Aki On Fri, Oct 9, 2009 at 7:29 AM, Kai Wulff <kai.wulff@kdn.co.ke> wrote:
Kai, thanx a million for willing to share the maths with regard to the Tier 1 (International) Internet Backbone Providers. Aki, I shall await to see the maths with regard to estimated costs for retailing this bandwidth locally. Obviously it would have been more authoritative if the figures came from one of the players...wananchi? accesskenya? zain? safcom? Remember the bigger % of the internet costs for developing economies are often incurred at the local loop...factor of size, usage, reach, content, etc of the domestic networks. walu. --- On Fri, 10/9/09, aki <aki275@googlemail.com> wrote: From: aki <aki275@googlemail.com> Subject: Re: [kictanet] TEAMS and Open ended circuit To: jwalu@yahoo.com Cc: "KICTAnet ICT Policy Discussions" <kictanet@lists.kictanet.or.ke> Date: Friday, October 9, 2009, 8:49 AM Dear Kai, Thank you for the clarifications, it is a big help on cost implications. I hope the VISP scenario will create more uptake of purchased capacity allowing for lower pricing at landing stations to become cheaper. I think it would be even nicer to do some math which ISPs are not passing on. I hope to list it soon and corrections are welcome. Rgds. Aki On Fri, Oct 9, 2009 at 7:29 AM, Kai Wulff <kai.wulff@kdn.co.ke> wrote: Aki, a word from the economist .. You cannot divide the cost of a system by the capacity one has ... You have to divide the cost by the capacity that can be sold .. Let's assume we sell in the first year 10Gbps of the TEAMS capacity (jointly between all operators) and the investors want to have at least the return anybody expects from injected cash (I am taking the yields of the latest Infrastructure Bond as benchmark). So: 130M USD to be returned in 5 years 1st year = 26 000 000 USD + 4% OaM = 31 200 000 USD That makes per Mbps and month 260 USD If we say we can sell 20Gbps then it would be 130 USD ... Let me stick to 10 for now .. Cross Connection in Fujeira between the TEAMS Landing and the SMW4 Landing on lease for 4 x STM16 = 200 000 USD per month = 20 USD per Mbps and month Onward Capacity from U.A.E. to London per STM16 approx. 150 000 USD per month = USD 60 per Mbps Add USD 20 per Mbps for all peering and hosting charges in London and you will have: USD 360 per Mbps and month ... This case assumes the 4 x STM16 are sold from day 1 in full .. Surely we can assume a straight line take-up that might peak in even 20Gbps after 12 month, then the first year will still be as above. The second year would be in the range of 210 - 230 USD ..... All the above is calculating 0 overheads at the operator's level .. No magic .. Just math .. Rgds Kai -----Inline Attachment Follows----- _______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke http://lists.kictanet.or.ke/mailman/listinfo/kictanet This message was sent to: jwalu@yahoo.com Unsubscribe or change your options at http://lists.kictanet.or.ke/mailman/options/kictanet/jwalu%40yahoo.com
Hello Walu, ( my amatuer opinion below ) per Megabit, the initial primary impact has already been felt. For anyone who really wants cheaper Internet Access compared to July 2009, its there and available. However, I'm tempted to slightly blame the Network operators for not making their case strong to the public through media etc. End users do not understand that if the Seacom/Teams bandwidth was offered as a shared service, as is the case by many ISPs who repackaged and call them Corporate/Business packages, the real costs drops are already here. A simple example: *Up to July 2009 : No Fiber, Entire country is on Satellite Internet* 1Mbit = 4000USD per Month. Shared Internet sold to clients on a monthly basis = *1340USD per* *month * (3 Clients Share this service and ISP bundles them as packages and call it the 1Mbit Broadband Service. Though the services is labelled as 1Mbit, it is a shared service.) *August 2009 onwards : Fiber in country* 1Mbit = 600USD per month Shared internet sold to clients on monthly basis = *200USD per month* (3 Clients Share this service and ISP bundles them as packages and call it the 1Mbit Broadband Service. Though the services is labelled as 1Mbit, it is a shared service.) As can be seen, the drastic price drops that could have taken place. I'll add more to the discussion a bit later. With Rgds. Aki On Fri, Oct 9, 2009 at 10:37 AM, Walubengo J <jwalu@yahoo.com> wrote:
Walubengo, The cost has indeed come down to 600 dollars. The bone of contetion is how far down should it come to? Government wants it as low as 100 dollars and at worst 200 dollars. This is possible if the operators promote new business to supply more bandwidth. In order to retain their revnue levels, they must introduce new solutions and capture the bent up demand. They cannot expect revenue to improve with old tactics. I will expound on this more in any article I am working on. It is unfortunate that even techies are confused on this subject. The cross connect in Fuajaira is as low as 15 dollars per MB or 3000 per STM1. It should not be a problem at all. Onward capacity to all destnations of the world starts from as low as 50 dollars. Therefore the cost for a full duplex should not be more than 100. The payback period for the capex between Mombasa and Fujaira should be at least 5 years to attain the prices we are hoping to get. Ndemo. Sent from my BlackBerry® -----Original Message----- From: Walubengo J <jwalu@yahoo.com> Date: Thu, 8 Oct 2009 05:21:08 To: <bitange@jambo.co.ke> Cc: KICTAnet ICT Policy Discussions<kictanet@lists.kictanet.or.ke> Subject: Re: [kictanet] TEAMS and Open ended circuit _______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke http://lists.kictanet.or.ke/mailman/listinfo/kictanet This message was sent to: bitange@jambo.co.ke Unsubscribe or change your options at http://lists.kictanet.or.ke/mailman/options/kictanet/bitange%40jambo.co.ke
Dear Ps Ndemo, Thank you for the corrections on pricing and I'm glad that my earlier assessment as a non-stake holder estimated Teams bandwidth costs ( I arrived to 60USD / Mbit ) was not far from the facts as you have clarified . Asante sana Rgds, Aki. A general comment - corrections are welcome: It seems there are 2 issues, one is the core bandwidth pricing as mentioned and the other resale through ISPs. I think ISPs pose a serious problem to future uptake as they, I'm told, have only in some cases doubled the bandwidth to clients on the same price structure that they were charging before. If this is true, then the example I listed is as follows : A simple example: *Up to July 2009 : No Fiber, Entire country is on Satellite Internet* 1Mbit = 4000USD per Month. Shared Internet sold to clients on a monthly basis = *1340USD per month* (3 Clients Share this service and ISP bundles them as packages and call it the 1Mbit Broadband Service. Though the services is labelled as 1Mbit, it is a shared service.) *August 2009 onwards : Fiber in country * 1Mbit = 600USD per month Shared internet sold to clients on monthly basis = *200USD per month should be the current price* (3 Clients Share this service and ISP bundles them as packages and call it the 1Mbit Broadband Service. Though the services is labelled as 1Mbit, it is a shared service.) *August 2009 onwards : Is this what is happening in the ISP market currently ?* 2Mbit = 1200USD per month Shared internet sold to clients on monthly basis = *1340USD per month ( Same price as before but the real price should be 400USD per month )* (3 Clients Share this service and ISP bundles them as packages and call it the 2Mbit Broadband Service. Though the services is labelled as 2Mbit, it is a shared service.)
Bw PS, I was really hoping someone else would say this but here goes, The costs have indeed come down - BUT NOT for 'Wanjiku' (common man/woman). We all know - courtesy of KDN and others- that the WHOLESALE bandwidth prices are down - BUT unless and until retail prices (back to the local/retail loop?) follows suit, there will be zero impact. Indeed if you recall one Onyango Hatari that we had to kick-off the list, he gets very confused and angry when he keeps hearing that the costs have come down and yet he continues to pay Ksh 1000 for 300MB of internet access that can just disappear after 5min of downloading some video/software content.... It is like saying the International cost of oil are down. But if our local pump prices remain high, it can only raise anger rather than hope. walu. --- On Fri, 10/9/09, bitange@jambo.co.ke <bitange@jambo.co.ke> wrote: From: bitange@jambo.co.ke <bitange@jambo.co.ke> Subject: Re: [kictanet] TEAMS and Open ended circuit To: "Walubengo J" <jwalu@yahoo.com>, kictanet-bounces+bitange=jambo.co.ke@lists.kictanet.or.ke Cc: "KICTAnet ICT Policy Discussions" <kictanet@lists.kictanet.or.ke> Date: Friday, October 9, 2009, 11:41 AM Walubengo, The cost has indeed come down to 600 dollars. The bone of contetion is how far down should it come to? Government wants it as low as 100 dollars and at worst 200 dollars. This is possible if the operators promote new business to supply more bandwidth. In order to retain their revnue levels, they must introduce new solutions and capture the bent up demand. They cannot expect revenue to improve with old tactics. I will expound on this more in any article I am working on. It is unfortunate that even techies are confused on this subject. The cross connect in Fuajaira is as low as 15 dollars per MB or 3000 per STM1. It should not be a problem at all. Onward capacity to all destnations of the world starts from as low as 50 dollars. Therefore the cost for a full duplex should not be more than 100. The payback period for the capex between Mombasa and Fujaira should be at least 5 years to attain the prices we are hoping to get. Ndemo. Sent from my BlackBerry® -----Original Message----- From: Walubengo J <jwalu@yahoo.com> Date: Thu, 8 Oct 2009 05:21:08 To: <bitange@jambo.co.ke> Cc: KICTAnet ICT Policy Discussions<kictanet@lists.kictanet.or.ke> Subject: Re: [kictanet] TEAMS and Open ended circuit _______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke http://lists.kictanet.or.ke/mailman/listinfo/kictanet This message was sent to: bitange@jambo.co.ke Unsubscribe or change your options at http://lists.kictanet.or.ke/mailman/options/kictanet/bitange%40jambo.co.ke
participants (5)
-
aki -
bitange＠jambo.co.ke -
kai wulff -
S.Murigi Muraya -
Walubengo J