Re: [kictanet] Day 5 - Statistics on Affordability - CCKInternetStudy Report
5 May
2007
5 May
'07
10:31 a.m.
>> In my opinion, the government should find a way of using the WB money through the
>> private sector, so that the private sector does not see as if the government is competing
>> and killing the profit margin
I think private sector should appreciate the role of govt in addressing needs of the disadvantaged via social programmes (e.g. education, health, fibre connectivity) and view the competition from government on the connectivity front as a challenge to model their businesses in the way that is responsive to rural market.
I would prefer if;
1. Government uses the funds to provide business-friendly loans via a model similar to the youth enterprise fund.
2. A money-making outfit demonstrates a convincing "business for development" case or partners with a not-for-profit (e.g. CBO or other community-focussed group) if it is to access the WB-like grants.
3. Funds go to not-for-profit organisation to operate rural ICT centres on low-overheads (the focus here being on the consumer in rural areas).
The WorldBank kind-of-money should go towards nurturing rural ICT SMEs that bring internet access rates to under a shilling per minute at the cybercafé end and even lower for a home or business user. I would expect a private sector outfit cushioned by government/WorldBank support should extend its break-even period to ensure the lowest prices at highest penetration levels.
...2 cents...
---
Wainaina Mungai
http://www.madeinkenya.org
SUSTAINABLE DEVELOPMENT is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
> -------Original Message-------
> From: John Walubengo <jwalu@yahoo.com>
> Subject: Re: [kictanet] Day 5 - Statistics on Affordability - CCKInternetStudy Report
> Sent: 04 May '07 13:16
>
> Agreed with Becky,
>
> I expected more views on this touchy subject of
> affordability. I do know we had technical hiccups but I
> trust they are now over...so lets hear more from the
> stakeholders - Consumers, Operators, Government,
> Regulators, etc.
>
> walu.
>
> --- Rebecca Wanjiku <rebeccawanjiku@yahoo.com> wrote:
>
> > thanks Kai for the response,
> > we need many people responding to this issue,
> >
> > in my opinion, the government should find a way of using
> > the WB money through the private sector, so that the
> > private sector does not see as if the government is
> > competing and killing the profit margin,
> >
> > in this regard, the government could come up with some
> > MOU with the private sector so that some of the money
> > invested is government's and some PS.
> > that way, part of the profits will be ploughed back (it
> > will be mandatory)
> >
> > i remember during the OFC workshop, Kai shared how IFC
> > funded a private secotor consortium to carry out some
> > survey at USD 300k and a similar survey carried out by
> > govts was valued at USD 3m
> >
> > maybe this can help reduce costs and provide a way for
> > govt and PS to work together and deliver quality market
> > services, develop the content and all..
> >
> > its just an opinion, its not absolute,
> >
> > lets hear as many voices as possible,
> > it is at these forums/discussions that great ideas come
> > up,
> >
> > regards
> >
> > Kai Wulff <kai.wulff@kdn.co.ke> wrote: Hello,
> >
> > we leave it to the ISPs to create the demand. We were
> > hoping that with our
> > rural initiatives, like connecting schools and showing
> > them how to educate
> > the parents (and make money with this) will increase the
> > demand on a natural
> > way.
> >
> > What we have seen wit some Rural BTS, it takes about 12
> > month until it is
> > break even ...
> >
> > The problem is when you create the demand and then some
> > World Bank money
> > starts to compete before you can recover the cost. It is
> > my strong believe
> > that wherever a device can be operated, there WILL be a
> > market. The private
> > sector needs the Government as a user there as well as
> > the private companies
> > and consumers. Only then will the prices drop! We still
> > focus too much on
> > the INTERNET, what most people need for a start is LOCAL
> > information and
> > communication .. so I would say: 90% local IP traffic and
> > 10% international
> > ..
> >
> > Kai
> >
> >
> > ----- Original Message -----
> > From: "Joan Walumbe"
> > To:
> > Sent: Thursday, May 03, 2007 10:26
> > Subject: Re: [kictanet] Day 5 - Statistics on
> > Affordability -
> > CCKInternetStudy Report
> >
> >
> > > Walu,
> > >
> > > I agree with you that affordablity is a factor
> > especially for rural
> > > communities when it comes to access to the internet.
> > But I think that lack
> > > of awareness is an even bigger factor. It's fine for
> > the urban folk (who
> > > already recognise the benefits to the internet etc.)
> > taking a short break
> > > in
> > > shags to have the internet access when back home, but
> > it there is no
> > > demand
> > > for the internet among the residents what is the point?
> > >
> > > So does KDN enter a market and then hope to create
> > demand or is their a
> > > market that demands the service or is it a little of
> > both?
> > >
> > > I understand that Kai would not be venturing into the
> > rural areas if it
> > > did
> > > not make any financial sense. Can anyone provide some
> > info/statistics on
> > > demand for internet access in rural areas?
> > >
> > > Joan Walumbe
> > >
> > > ----- Original Message -----
> > > From: "John Walubengo"
> > > To:
> > > Sent: Thursday, May 03, 2007 9:01 AM
> > > Subject: [kictanet] Day 5 - Statistics on Affordability
> > - CCK
> > > InternetStudy
> > > Report
> > >
> > >
> > > Day 5- Statistics on Affordability.
> > >
> > > I acknowledge an interesting thread filtering in on
> > Trust relationships
> > > b/w
> > > IGOs/ISPs...feel free to continue contributing on that
> > as well as on
> > > today's theme on affordability (multi-tasking
> > > encouraged by internet technologies ...)
> > >
> > > and just to pick up from Kai's projection of KDN fiber
> > hitting Bungoma in
> > > early August 2007. This would be quite a welcome and
> > timely development,
> > > but at what cost to the consumer? To what extend will
> > the (internet)
> > > services be affordable to the rural/average
> > communities?
> > >
> > > Affordability is a subjective term gven that what is
> > considered cheap by
> > > the
> > > Bill Gates of this world is probably not so for the
> > average Kenyan on the
> > > street. In trying to get an objective measurement for
> > affordability, the
> > > Report pegged it on the national average incomes. In
> > other words, if the
> > > monthly average income in Kenya is around 100USD and if
> > the average
> > > monthly
> > > cost for internet access is also around 100USD then
> > obviously the average
> > > Kenyan will not bother with accessing the Internet - it
> > just becomes way
> > > beyond their means or too expensive or not affordable.
> > >
> > > The report indicated that access through the more
> > convenient Internet
> > > Dial-up/Desktop services costed over 200% the average
> > incomes (too
> > > expensive), while the same access through mobile
> > phones was costing just
> > > 8%
> > > of the average incomes (quite affordable). What needs
> > to be done in
> > > order
> > > to make Internet Services more afforable to Kenyans?
> > >
> > > 1 day deliberation on this one.
> > >
> > > walu.
> > >
> > >
> > >
> > >
> > >
> > > _______________________________________________
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> > >
> >
> >
> > _______________________________________________
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> >
> >
> >
> > Rebecca Wanjiku,
> > journalist,
> > p.o box 33515,
> > Nairobi.00600
> > Kenya.
> >
> > Tel. 254 720 318 925
> >
> > blog:http://beckyit.blogspot.com/
> >
> >
> === message truncated ===>
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Wainaina Mungai