Re: [kictanet] Day 5 - Statistics on Affordability - CCKInternetStudyReport
Kai said;
The problem is when you create the demand and then some World Bank money starts to compete before you can recover the cost .The private sector needs the Government as a user there as well as the private companies and consumers. [Only then will the prices drop!]
Pricing I would like to assume that competition from government is as good as competition from other market players. The beauty of competition is in the way it forces the private sector to put a smile on the face of every consumer ;-) so as to guarantee revenue. I am convinced that a significant drop in prices results only from fierce competition and some degree of regulation. TESPOK and others fought for years to introduce competition which resulted in the current lower prices of internet and telephony services. The recent intervention of CCK on the pricing of mobile services is a case that proves that price controls may become necessary to protect consumers. For internet services, we need many small scale providers whose products and pricing would be more market-driven and responsive to fluctuations in consumer needs. For instance, an internet user paying KShs. 6,000 per month for DSL per month is actually incurring 14 cents per minute for a 30-day month. This is a great deal for any 24 hour user who may even make money through such access to the internet. The same user would be said to incur 28 cents per minute if s/he were to use the link for an average 12 hours per day at the same monthly rate. There may be a catch here but there is a high probability that more businesses can survive on such low rates and pass such rates down to rural consumer. --- 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.
FROM: kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke [mailto:kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke] ON BEHALF OF Rebecca Wanjiku SENT: Friday, May 04, 2007 10:23 TO: kai.wulff@kdn.co.ke SUBJECT: [kictanet] Day 5 - Statistics on Affordability - CCKInternetStudyReport
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.
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/kai.wulff%40kdn.co.ke
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/rebeccawanjiku%40yahoo.com
Rebecca Wanjiku, journalist, p.o box 33515, Nairobi.00600 Kenya.
Tel. 254 720 318 925
blog:http://beckyit.blogspot.com/
--------------------
Ahhh...imagining that irresistible "new car" smell? Check out [LINK: http://us.rd.yahoo.com/evt=48245/*http:/autos.yahoo.com/new_cars.html;_ylc=X...] new cars at Yahoo! Autos. -------------------- _______________________________________________ kictanet mailing list [LINK: compose.php?to=kictanet@kictanet.or.ke] kictanet@kictanet.or.ke [LINK: http://kictanet.or.ke/mailman/listinfo/kictanet] http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at [LINK: http://kictanet.or.ke/mailman/options/kictanet/wainaina%40madeinkenya.org] http://kictanet.or.ke/mailman/options/kictanet/wainaina%40madeinkenya.org
My point is: Yu have limited room for infrastructure since the cost is constant and only increased usage can drop the price. The Government should NOT be a competitor but a price sensitive user! You will have enough people now competing for the business of the Government and the private users .. That forces prices down. Having a state owned cable or a state owned Telkom is in my opinion not the way forward. Rgds Kai -----Original Message----- From: kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke [mailto:kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke] On Behalf Of Wainaina Mungai Sent: Saturday, May 05, 2007 10:35 To: kai.wulff@kdn.co.ke Subject: Re: [kictanet] Day 5 - Statistics on Affordability- CCKInternetStudyReport Kai said;
The problem is when you create the demand and then some World Bank money starts to compete before you can recover the cost.. ...The private sector needs the Government as a user there as well as the private companies and consumers. [Only then will the prices drop!]
Pricing I would like to assume that competition from government is as good as competition from other market players. The beauty of competition is in the way it forces the private sector to put a smile on the face of every consumer ;-) so as to guarantee revenue. I am convinced that a significant drop in prices results only from fierce competition and some degree of regulation. TESPOK and others fought for years to introduce competition which resulted in the current lower prices of internet and telephony services. The recent intervention of CCK on the pricing of mobile services is a case that proves that price controls may become necessary to protect consumers. For internet services, we need many 'small scale' providers whose products and pricing would be more market-driven and responsive to fluctuations in consumer needs. For instance, an internet user paying KShs. 6,000 per month for DSL per month is actually incurring 14 cents per minute for a 30-day month. This is a great deal for any 24 hour user who may even make money through such access to the internet. The same user would be said to incur 28 cents per minute if s/he were to use the link for an average 12 hours per day at the same monthly rate. There may be a catch here but there is a high probability that more businesses can survive on such low rates and pass such rates down to rural consumer. --- 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.
FROM: kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke [mailto:kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke] ON BEHALF OF Rebecca Wanjiku SENT: Friday, May 04, 2007 10:23 TO: kai.wulff@kdn.co.ke SUBJECT: [kictanet] Day 5 - Statistics on Affordability - CCKInternetStudyReport
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.
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/kai.wulff%40kdn.co.ke
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/rebeccawanjiku%40yahoo.com
Rebecca Wanjiku, journalist, p.o box 33515, Nairobi.00600 Kenya.
Tel. 254 720 318 925
blog:http://beckyit.blogspot.com/
--------------------
Ahhh...imagining that irresistible "new car" smell? Check out [LINK:
http://us.rd.yahoo.com/evt=48245/*http:/autos.yahoo.com/new_cars.html;_ylc=X 3oDMTE1YW1jcXJ2BF9TAzk3MTA3MDc2BHNlYwNtYWlsdGFncwRzbGsDbmV3LWNhcnM-]
new cars at Yahoo! Autos. -------------------- _______________________________________________ kictanet mailing list [LINK: compose.php?to=kictanet@kictanet.or.ke] kictanet@kictanet.or.ke [LINK: http://kictanet.or.ke/mailman/listinfo/kictanet] http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at [LINK:
http://kictanet.or.ke/mailman/options/kictanet/wainaina%40madeinkenya.org]
http://kictanet.or.ke/mailman/options/kictanet/wainaina%40madeinkenya.org
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/kai.wulff%40kdn.co.ke
Kai: I see your point, again I will use my previous domicile as a case in point, the Federal Government is the biggest employer/buyer of supplies and services in the Washington DC metro area (Virginia, Maryland, and of course Washington DC) hence e-governance/e-learning is a must and I think the Kenyan government recognizes this from the various initiatives currently on going, I just think its just a matter of time. The only point where you and i part ways is your stand that the Government should not be involved in infrastructure building because the Government has an obligation to ensure that all Kenyans have access to the internet while the private sector has to have a business case to justify coverage of any particular area, so I say both efforts Government and Private sector must compliment each other. With all the initiates on the drawing boards of both the government and the private sector, I say let all move from the drawing boards into implementation, Kai the computers at Kambaa Girls are gathering dust, and Bw. Ndemo, I signed up for both the digital village and digital school during the KICC expo and I have not heard a word on the way forward from your end. LK
My point is:
Yu have limited room for infrastructure since the cost is constant and only increased usage can drop the price. The Government should NOT be a competitor but a price sensitive user!
You will have enough people now competing for the business of the Government and the private users .. That forces prices down. Having a state owned cable or a state owned Telkom is in my opinion not the way forward.
Rgds
Kai
-----Original Message----- From: kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke [mailto:kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke] On Behalf Of Wainaina Mungai Sent: Saturday, May 05, 2007 10:35 To: kai.wulff@kdn.co.ke Subject: Re: [kictanet] Day 5 - Statistics on Affordability- CCKInternetStudyReport
Kai said;
The problem is when you create the demand and then some World Bank money starts to compete before you can recover the cost.. ...The private sector needs the Government as a user there as well as the private companies and consumers. [Only then will the prices drop!]
Pricing I would like to assume that competition from government is as good as competition from other market players. The beauty of competition is in the way it forces the private sector to put a smile on the face of every consumer ;-) so as to guarantee revenue. I am convinced that a significant drop in prices results only from fierce competition and some degree of regulation. TESPOK and others fought for years to introduce competition which resulted in the current lower prices of internet and telephony services.
The recent intervention of CCK on the pricing of mobile services is a case that proves that price controls may become necessary to protect consumers. For internet services, we need many 'small scale' providers whose products and pricing would be more market-driven and responsive to fluctuations in consumer needs.
For instance, an internet user paying KShs. 6,000 per month for DSL per month is actually incurring 14 cents per minute for a 30-day month. This is a great deal for any 24 hour user who may even make money through such access to the internet. The same user would be said to incur 28 cents per minute if s/he were to use the link for an average 12 hours per day at the same monthly rate. There may be a catch here but there is a high probability that more businesses can survive on such low rates and pass such rates down to rural consumer.
--- 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.
FROM: kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke [mailto:kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke] ON BEHALF OF Rebecca Wanjiku SENT: Friday, May 04, 2007 10:23 TO: kai.wulff@kdn.co.ke SUBJECT: [kictanet] Day 5 - Statistics on Affordability - CCKInternetStudyReport
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.
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/kai.wulff%40kdn.co.ke
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/rebeccawanjiku%40yahoo.com
Rebecca Wanjiku, journalist, p.o box 33515, Nairobi.00600 Kenya.
Tel. 254 720 318 925
blog:http://beckyit.blogspot.com/
--------------------
Ahhh...imagining that irresistible "new car" smell? Check out [LINK:
http://us.rd.yahoo.com/evt=48245/*http:/autos.yahoo.com/new_cars.html;_ylc=X 3oDMTE1YW1jcXJ2BF9TAzk3MTA3MDc2BHNlYwNtYWlsdGFncwRzbGsDbmV3LWNhcnM-]
new cars at Yahoo! Autos. -------------------- _______________________________________________ kictanet mailing list [LINK: compose.php?to=kictanet@kictanet.or.ke] kictanet@kictanet.or.ke [LINK: http://kictanet.or.ke/mailman/listinfo/kictanet] http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at [LINK:
http://kictanet.or.ke/mailman/options/kictanet/wainaina%40madeinkenya.org]
http://kictanet.or.ke/mailman/options/kictanet/wainaina%40madeinkenya.org
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/kai.wulff%40kdn.co.ke _______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/lkimani%40comnews.co.ke
----------------------------------------- This email was sent using Communicatons Solutions LTD WebMail. " " http://www.accesskenya.com/
Please get in touch with Vincent to have the computers connected ASAP. Kai -----Original Message----- From: kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke [mailto:kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke] On Behalf Of Lucy Kimani Sent: Saturday, May 05, 2007 11:24 To: kai.wulff@kdn.co.ke Subject: Re: [kictanet] Day 5 - Statistics onAffordability- CCKInternetStudyReport Kai: I see your point, again I will use my previous domicile as a case in point, the Federal Government is the biggest employer/buyer of supplies and services in the Washington DC metro area (Virginia, Maryland, and of course Washington DC) hence e-governance/e-learning is a must and I think the Kenyan government recognizes this from the various initiatives currently on going, I just think its just a matter of time. The only point where you and i part ways is your stand that the Government should not be involved in infrastructure building because the Government has an obligation to ensure that all Kenyans have access to the internet while the private sector has to have a business case to justify coverage of any particular area, so I say both efforts Government and Private sector must compliment each other. With all the initiates on the drawing boards of both the government and the private sector, I say let all move from the drawing boards into implementation, Kai the computers at Kambaa Girls are gathering dust, and Bw. Ndemo, I signed up for both the digital village and digital school during the KICC expo and I have not heard a word on the way forward from your end. LK
My point is:
Yu have limited room for infrastructure since the cost is constant and only increased usage can drop the price. The Government should NOT be a competitor but a price sensitive user!
You will have enough people now competing for the business of the Government and the private users .. That forces prices down. Having a state owned cable or a state owned Telkom is in my opinion not the way forward.
Rgds
Kai
-----Original Message----- From: kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke [mailto:kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke] On Behalf Of Wainaina Mungai Sent: Saturday, May 05, 2007 10:35 To: kai.wulff@kdn.co.ke Subject: Re: [kictanet] Day 5 - Statistics on Affordability- CCKInternetStudyReport
Kai said;
The problem is when you create the demand and then some World Bank money starts to compete before you can recover the cost.. ...The private sector needs the Government as a user there as well as the private companies and consumers. [Only then will the prices drop!]
Pricing I would like to assume that competition from government is as good as competition from other market players. The beauty of competition is in the way it forces the private sector to put a smile on the face of every consumer ;-) so as to guarantee revenue. I am convinced that a significant drop in prices results only from fierce competition and some degree of regulation. TESPOK and others fought for years to introduce competition which resulted in the current lower prices of internet and telephony services.
The recent intervention of CCK on the pricing of mobile services is a case that proves that price controls may become necessary to protect consumers. For internet services, we need many 'small scale' providers whose products and pricing would be more market-driven and responsive to fluctuations in consumer needs.
For instance, an internet user paying KShs. 6,000 per month for DSL per month is actually incurring 14 cents per minute for a 30-day month. This is a great deal for any 24 hour user who may even make money through such access to the internet. The same user would be said to incur 28 cents per minute if s/he were to use the link for an average 12 hours per day at the same monthly rate. There may be a catch here but there is a high probability that more businesses can survive on such low rates and pass such rates down to rural consumer.
--- 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.
FROM: kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke [mailto:kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke] ON BEHALF OF Rebecca Wanjiku SENT: Friday, May 04, 2007 10:23 TO: kai.wulff@kdn.co.ke SUBJECT: [kictanet] Day 5 - Statistics on Affordability - CCKInternetStudyReport
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.
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/kai.wulff%40kdn.co.ke
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at
http://kictanet.or.ke/mailman/options/kictanet/rebeccawanjiku%40yahoo.com
Rebecca Wanjiku, journalist, p.o box 33515, Nairobi.00600 Kenya.
Tel. 254 720 318 925
blog:http://beckyit.blogspot.com/
--------------------
Ahhh...imagining that irresistible "new car" smell? Check out [LINK:
http://us.rd.yahoo.com/evt=48245/*http:/autos.yahoo.com/new_cars.html;_ylc=X
3oDMTE1YW1jcXJ2BF9TAzk3MTA3MDc2BHNlYwNtYWlsdGFncwRzbGsDbmV3LWNhcnM-]
new cars at Yahoo! Autos. -------------------- _______________________________________________ kictanet mailing list [LINK: compose.php?to=kictanet@kictanet.or.ke] kictanet@kictanet.or.ke [LINK: http://kictanet.or.ke/mailman/listinfo/kictanet] http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at [LINK:
http://kictanet.or.ke/mailman/options/kictanet/wainaina%40madeinkenya.org]
http://kictanet.or.ke/mailman/options/kictanet/wainaina%40madeinkenya.org
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/kai.wulff%40kdn.co.ke _______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/lkimani%40comnews.co.ke
----------------------------------------- This email was sent using Communicatons Solutions LTD WebMail. " " http://www.accesskenya.com/ _______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/kai.wulff%40kdn.co.ke
Dear Colleagues, I was hoping to remain a spectator in this debate but looks that is becoming difficult to achieve. I think we need to look at ICT infrastructure and especially connectivity differently. We need to elevate the status and importance of ICT infrastructure to the same level as roads and power. Meaning any new infrastructural development in the country, should have connectivity considerations factored in. For instance when doing the feasibility study for the new roads soon to be commissioned and to be supported by the Chinese Government, there should be considerations of whether there is need to lay fiber alongside other amenities such as power, lighting, walks ways and sewage. Regards Harry -----Original Message----- From: kictanet-bounces+harry=africanedevelopment.org@kictanet.or.ke [mailto:kictanet-bounces+harry=africanedevelopment.org@kictanet.or.ke] On Behalf Of Lucy Kimani Sent: Saturday, May 05, 2007 11:24 AM To: harry@africanedevelopment.org Subject: Re: [kictanet] Day 5 - Statistics onAffordability- CCKInternetStudyReport Kai: I see your point, again I will use my previous domicile as a case in point, the Federal Government is the biggest employer/buyer of supplies and services in the Washington DC metro area (Virginia, Maryland, and of course Washington DC) hence e-governance/e-learning is a must and I think the Kenyan government recognizes this from the various initiatives currently on going, I just think its just a matter of time. The only point where you and i part ways is your stand that the Government should not be involved in infrastructure building because the Government has an obligation to ensure that all Kenyans have access to the internet while the private sector has to have a business case to justify coverage of any particular area, so I say both efforts Government and Private sector must compliment each other. With all the initiates on the drawing boards of both the government and the private sector, I say let all move from the drawing boards into implementation, Kai the computers at Kambaa Girls are gathering dust, and Bw. Ndemo, I signed up for both the digital village and digital school during the KICC expo and I have not heard a word on the way forward from your end. LK
My point is:
Yu have limited room for infrastructure since the cost is constant and only increased usage can drop the price. The Government should NOT be a competitor but a price sensitive user!
You will have enough people now competing for the business of the Government and the private users .. That forces prices down. Having a state owned cable or a state owned Telkom is in my opinion not the way forward.
Rgds
Kai
-----Original Message----- From: kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke [mailto:kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke] On Behalf Of Wainaina Mungai Sent: Saturday, May 05, 2007 10:35 To: kai.wulff@kdn.co.ke Subject: Re: [kictanet] Day 5 - Statistics on Affordability- CCKInternetStudyReport
Kai said;
The problem is when you create the demand and then some World Bank money starts to compete before you can recover the cost.. ...The private sector needs the Government as a user there as well as the private companies and consumers. [Only then will the prices drop!]
Pricing I would like to assume that competition from government is as good as competition from other market players. The beauty of competition is in the way it forces the private sector to put a smile on the face of every consumer ;-) so as to guarantee revenue. I am convinced that a significant drop in prices results only from fierce competition and some degree of regulation. TESPOK and others fought for years to introduce competition which resulted in the current lower prices of internet and telephony services.
The recent intervention of CCK on the pricing of mobile services is a case that proves that price controls may become necessary to protect consumers. For internet services, we need many 'small scale' providers whose products and pricing would be more market-driven and responsive to fluctuations in consumer needs.
For instance, an internet user paying KShs. 6,000 per month for DSL per month is actually incurring 14 cents per minute for a 30-day month. This is a great deal for any 24 hour user who may even make money through such access to the internet. The same user would be said to incur 28 cents per minute if s/he were to use the link for an average 12 hours per day at the same monthly rate. There may be a catch here but there is a high probability that more businesses can survive on such low rates and pass such rates down to rural consumer.
--- 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.
FROM: kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke [mailto:kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke] ON BEHALF OF Rebecca Wanjiku SENT: Friday, May 04, 2007 10:23 TO: kai.wulff@kdn.co.ke SUBJECT: [kictanet] Day 5 - Statistics on Affordability - CCKInternetStudyReport
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.
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/kai.wulff%40kdn.co.ke
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at
http://kictanet.or.ke/mailman/options/kictanet/rebeccawanjiku%40yahoo.com
Rebecca Wanjiku, journalist, p.o box 33515, Nairobi.00600 Kenya.
Tel. 254 720 318 925
blog:http://beckyit.blogspot.com/
--------------------
Ahhh...imagining that irresistible "new car" smell? Check out [LINK:
http://us.rd.yahoo.com/evt=48245/*http:/autos.yahoo.com/new_cars.html;_ylc=X
3oDMTE1YW1jcXJ2BF9TAzk3MTA3MDc2BHNlYwNtYWlsdGFncwRzbGsDbmV3LWNhcnM-]
new cars at Yahoo! Autos. -------------------- _______________________________________________ kictanet mailing list [LINK: compose.php?to=kictanet@kictanet.or.ke] kictanet@kictanet.or.ke [LINK: http://kictanet.or.ke/mailman/listinfo/kictanet] http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at [LINK:
http://kictanet.or.ke/mailman/options/kictanet/wainaina%40madeinkenya.org]
http://kictanet.or.ke/mailman/options/kictanet/wainaina%40madeinkenya.org
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/kai.wulff%40kdn.co.ke _______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/lkimani%40comnews.co.ke
----------------------------------------- This email was sent using Communicatons Solutions LTD WebMail. " " http://www.accesskenya.com/ _______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/harry%40africanedevelopment.o rg
Dear Lucy, We are rolling out the Digital Villages in July. We needed funds to do that and I can confirm that we have the resources in the next FY. Regards Ndemo
Kai:
I see your point, again I will use my previous domicile as a case in point, the Federal Government is the biggest employer/buyer of supplies and services in the Washington DC metro area (Virginia, Maryland, and of course Washington DC) hence e-governance/e-learning is a must and I think the Kenyan government recognizes this from the various initiatives currently on going, I just think its just a matter of time.
The only point where you and i part ways is your stand that the Government should not be involved in infrastructure building because the Government has an obligation to ensure that all Kenyans have access to the internet while the private sector has to have a business case to justify coverage of any particular area, so I say both efforts Government and Private sector must compliment each other.
With all the initiates on the drawing boards of both the government and the private sector, I say let all move from the drawing boards into implementation, Kai the computers at Kambaa Girls are gathering dust, and Bw. Ndemo, I signed up for both the digital village and digital school during the KICC expo and I have not heard a word on the way forward from your end.
LK
My point is:
Yu have limited room for infrastructure since the cost is constant and only increased usage can drop the price. The Government should NOT be a competitor but a price sensitive user!
You will have enough people now competing for the business of the Government and the private users .. That forces prices down. Having a state owned cable or a state owned Telkom is in my opinion not the way forward.
Rgds
Kai
-----Original Message----- From: kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke [mailto:kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke] On Behalf Of Wainaina Mungai Sent: Saturday, May 05, 2007 10:35 To: kai.wulff@kdn.co.ke Subject: Re: [kictanet] Day 5 - Statistics on Affordability- CCKInternetStudyReport
Kai said;
The problem is when you create the demand and then some World Bank money starts to compete before you can recover the cost.. ...The private sector needs the Government as a user there as well as the private companies and consumers. [Only then will the prices drop!]
Pricing I would like to assume that competition from government is as good as competition from other market players. The beauty of competition is in the way it forces the private sector to put a smile on the face of every consumer ;-) so as to guarantee revenue. I am convinced that a significant drop in prices results only from fierce competition and some degree of regulation. TESPOK and others fought for years to introduce competition which resulted in the current lower prices of internet and telephony services.
The recent intervention of CCK on the pricing of mobile services is a case that proves that price controls may become necessary to protect consumers. For internet services, we need many 'small scale' providers whose products and pricing would be more market-driven and responsive to fluctuations in consumer needs.
For instance, an internet user paying KShs. 6,000 per month for DSL per month is actually incurring 14 cents per minute for a 30-day month. This is a great deal for any 24 hour user who may even make money through such access to the internet. The same user would be said to incur 28 cents per minute if s/he were to use the link for an average 12 hours per day at the same monthly rate. There may be a catch here but there is a high probability that more businesses can survive on such low rates and pass such rates down to rural consumer.
--- 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.
FROM: kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke [mailto:kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke] ON BEHALF OF Rebecca Wanjiku SENT: Friday, May 04, 2007 10:23 TO: kai.wulff@kdn.co.ke SUBJECT: [kictanet] Day 5 - Statistics on Affordability - CCKInternetStudyReport
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.
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/kai.wulff%40kdn.co.ke
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/rebeccawanjiku%40yahoo.com
Rebecca Wanjiku, journalist, p.o box 33515, Nairobi.00600 Kenya.
Tel. 254 720 318 925
blog:http://beckyit.blogspot.com/
--------------------
Ahhh...imagining that irresistible "new car" smell? Check out [LINK:
http://us.rd.yahoo.com/evt=48245/*http:/autos.yahoo.com/new_cars.html;_ylc=X 3oDMTE1YW1jcXJ2BF9TAzk3MTA3MDc2BHNlYwNtYWlsdGFncwRzbGsDbmV3LWNhcnM-]
new cars at Yahoo! Autos. -------------------- _______________________________________________ kictanet mailing list [LINK: compose.php?to=kictanet@kictanet.or.ke] kictanet@kictanet.or.ke [LINK: http://kictanet.or.ke/mailman/listinfo/kictanet] http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at [LINK:
http://kictanet.or.ke/mailman/options/kictanet/wainaina%40madeinkenya.org]
http://kictanet.or.ke/mailman/options/kictanet/wainaina%40madeinkenya.org
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/kai.wulff%40kdn.co.ke _______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/lkimani%40comnews.co.ke
----------------------------------------- This email was sent using Communicatons Solutions LTD WebMail. " " http://www.accesskenya.com/
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/bitange%40jambo.co.ke
---------------------------------------------- This message has been scanned for viruses and dangerous content by Jambo MailScanner, and is believed to be clean. --------------------------------------------- "easy access to the world"
---------------------------------------------- This message has been scanned for viruses and dangerous content by Jambo MailScanner, and is believed to be clean. --------------------------------------------- "easy access to the world"
Kai, i totally agree with the first part of you submission below but not the second. Reason, blanket ruling out that option is not CORRECT because in Turkey, a govenrment controlled monopoly lead massive expansion of Internet where the incumbent PTT is an infrastructure provider and does not compete in the retail market. May be what you are referring to is Telkom Kenya so i may be wrong also but we should not make a blanket ruling out of that option. My current take it that a multi-stakeholder approach in terms of ownership of the infrastructure entity may be the way forward with private sector operation. My colleagues at the Mosaic Group (http://mosaic.unomaha.edu/ gdi.html) who does Global Internet Diffusion Studies focused on Turkey @ http://mosaic.unomaha.edu/TURK_PUB.pdf and Pakistan, a dimetrically opposing case @ http://mosaic.unomaha.edu/ GDI99Pakistan.pdf - both countries had totaly opposing approaches that worked on the comparative study @ http://mosaic.unomaha.edu/ TurkPak_2000.pdf Eric here On 5 May 2007, at 10:59, Kai U. Wulff wrote:
My point is:
Yu have limited room for infrastructure since the cost is constant and only increased usage can drop the price. The Government should NOT be a competitor but a price sensitive user!
You will have enough people now competing for the business of the Government and the private users .. That forces prices down. Having a state owned cable or a state owned Telkom is in my opinion not the way forward.
Rgds
Kai
-----Original Message----- From: kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke [mailto:kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke] On Behalf Of Wainaina Mungai Sent: Saturday, May 05, 2007 10:35 To: kai.wulff@kdn.co.ke Subject: Re: [kictanet] Day 5 - Statistics on Affordability- CCKInternetStudyReport
Kai said;
The problem is when you create the demand and then some World Bank money starts to compete before you can recover the cost.. ...The private sector needs the Government as a user there as well as the private companies and consumers. [Only then will the prices drop!]
Pricing I would like to assume that competition from government is as good as competition from other market players. The beauty of competition is in the way it forces the private sector to put a smile on the face of every consumer ;-) so as to guarantee revenue. I am convinced that a significant drop in prices results only from fierce competition and some degree of regulation. TESPOK and others fought for years to introduce competition which resulted in the current lower prices of internet and telephony services.
The recent intervention of CCK on the pricing of mobile services is a case that proves that price controls may become necessary to protect consumers. For internet services, we need many 'small scale' providers whose products and pricing would be more market-driven and responsive to fluctuations in consumer needs.
For instance, an internet user paying KShs. 6,000 per month for DSL per month is actually incurring 14 cents per minute for a 30-day month. This is a great deal for any 24 hour user who may even make money through such access to the internet. The same user would be said to incur 28 cents per minute if s/he were to use the link for an average 12 hours per day at the same monthly rate. There may be a catch here but there is a high probability that more businesses can survive on such low rates and pass such rates down to rural consumer.
--- 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.
FROM: kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke [mailto:kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke] ON BEHALF OF Rebecca Wanjiku SENT: Friday, May 04, 2007 10:23 TO: kai.wulff@kdn.co.ke SUBJECT: [kictanet] Day 5 - Statistics on Affordability - CCKInternetStudyReport
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.
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/kai.wulff%40kdn.co.ke
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/rebeccawanjiku% 40yahoo.com
Rebecca Wanjiku, journalist, p.o box 33515, Nairobi.00600 Kenya.
Tel. 254 720 318 925
blog:http://beckyit.blogspot.com/
--------------------
Ahhh...imagining that irresistible "new car" smell? Check out [LINK:
http://us.rd.yahoo.com/evt=48245/*http:/autos.yahoo.com/ new_cars.html;_ylc=X 3oDMTE1YW1jcXJ2BF9TAzk3MTA3MDc2BHNlYwNtYWlsdGFncwRzbGsDbmV3LWNhcnM-]
new cars at Yahoo! Autos. -------------------- _______________________________________________ kictanet mailing list [LINK: compose.php?to=kictanet@kictanet.or.ke] kictanet@kictanet.or.ke [LINK: http://kictanet.or.ke/mailman/listinfo/kictanet] http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at [LINK:
http://kictanet.or.ke/mailman/options/kictanet/wainaina% 40madeinkenya.org]
http://kictanet.or.ke/mailman/options/kictanet/wainaina% 40madeinkenya.org
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/kai.wulff%40kdn.co.ke _______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/ mailman/options/kictanet/eric%40afrispa.org
Eric M.K Osiakwan Executive Secretary AfrISPA (www.afrispa.org) Tel: + 233.21.258800 ext 2031 Fax: + 233.21.258811 Cell: + 233.244.386792 Handle: eosiakwan Snail Mail: Pmb 208, Accra-North Office: BusyInternet - 42 Ring Road Central, Accra-North Blog: http://blogs.law.harvard.edu/eric/ Slang: "Tomorrow Now"
Dear All, Please do not be misled. The Government will never compete with anybody. All that is being done is to develop a platform where big and small can reasonably compete. I think Kai is confusing Telkom projects and Government infrastructure projects. If the private sector indeed wanted to do infrastructure projects they will have done so but most private sector have to have a business case first. I wonder why Kai did not do the Garisa route first before heading to Uganda. Please understand that Government has the obligation to provide infrastructure. Regards Bitange Ndemo.
My point is:
Yu have limited room for infrastructure since the cost is constant and only increased usage can drop the price. The Government should NOT be a competitor but a price sensitive user!
You will have enough people now competing for the business of the Government and the private users .. That forces prices down. Having a state owned cable or a state owned Telkom is in my opinion not the way forward.
Rgds
Kai
-----Original Message----- From: kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke [mailto:kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke] On Behalf Of Wainaina Mungai Sent: Saturday, May 05, 2007 10:35 To: kai.wulff@kdn.co.ke Subject: Re: [kictanet] Day 5 - Statistics on Affordability- CCKInternetStudyReport
Kai said;
The problem is when you create the demand and then some World Bank money starts to compete before you can recover the cost.. ...The private sector needs the Government as a user there as well as the private companies and consumers. [Only then will the prices drop!]
Pricing I would like to assume that competition from government is as good as competition from other market players. The beauty of competition is in the way it forces the private sector to put a smile on the face of every consumer ;-) so as to guarantee revenue. I am convinced that a significant drop in prices results only from fierce competition and some degree of regulation. TESPOK and others fought for years to introduce competition which resulted in the current lower prices of internet and telephony services.
The recent intervention of CCK on the pricing of mobile services is a case that proves that price controls may become necessary to protect consumers. For internet services, we need many 'small scale' providers whose products and pricing would be more market-driven and responsive to fluctuations in consumer needs.
For instance, an internet user paying KShs. 6,000 per month for DSL per month is actually incurring 14 cents per minute for a 30-day month. This is a great deal for any 24 hour user who may even make money through such access to the internet. The same user would be said to incur 28 cents per minute if s/he were to use the link for an average 12 hours per day at the same monthly rate. There may be a catch here but there is a high probability that more businesses can survive on such low rates and pass such rates down to rural consumer.
--- 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.
FROM: kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke [mailto:kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke] ON BEHALF OF Rebecca Wanjiku SENT: Friday, May 04, 2007 10:23 TO: kai.wulff@kdn.co.ke SUBJECT: [kictanet] Day 5 - Statistics on Affordability - CCKInternetStudyReport
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.
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/kai.wulff%40kdn.co.ke
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/rebeccawanjiku%40yahoo.com
Rebecca Wanjiku, journalist, p.o box 33515, Nairobi.00600 Kenya.
Tel. 254 720 318 925
blog:http://beckyit.blogspot.com/
--------------------
Ahhh...imagining that irresistible "new car" smell? Check out [LINK:
http://us.rd.yahoo.com/evt=48245/*http:/autos.yahoo.com/new_cars.html;_ylc=X 3oDMTE1YW1jcXJ2BF9TAzk3MTA3MDc2BHNlYwNtYWlsdGFncwRzbGsDbmV3LWNhcnM-]
new cars at Yahoo! Autos. -------------------- _______________________________________________ kictanet mailing list [LINK: compose.php?to=kictanet@kictanet.or.ke] kictanet@kictanet.or.ke [LINK: http://kictanet.or.ke/mailman/listinfo/kictanet] http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at [LINK:
http://kictanet.or.ke/mailman/options/kictanet/wainaina%40madeinkenya.org]
http://kictanet.or.ke/mailman/options/kictanet/wainaina%40madeinkenya.org
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/kai.wulff%40kdn.co.ke _______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/bitange%40jambo.co.ke
---------------------------------------------- This message has been scanned for viruses and dangerous content by Jambo MailScanner, and is believed to be clean. --------------------------------------------- "easy access to the world"
Well, If you tender the capacity you require in Garissa, we will quote a price and commit a deployment of fiber. Kai -----Original Message----- From: kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke [mailto:kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke] On Behalf Of bitange@jambo.co.ke Sent: Monday, May 07, 2007 18:10 To: kai.wulff@kdn.co.ke Subject: Re: [kictanet] Day 5 - Statistics on Affordability- CCKInternetStudyReport Dear All, Please do not be misled. The Government will never compete with anybody. All that is being done is to develop a platform where big and small can reasonably compete. I think Kai is confusing Telkom projects and Government infrastructure projects. If the private sector indeed wanted to do infrastructure projects they will have done so but most private sector have to have a business case first. I wonder why Kai did not do the Garisa route first before heading to Uganda. Please understand that Government has the obligation to provide infrastructure. Regards Bitange Ndemo.
My point is:
Yu have limited room for infrastructure since the cost is constant and only increased usage can drop the price. The Government should NOT be a competitor but a price sensitive user!
You will have enough people now competing for the business of the Government and the private users .. That forces prices down. Having a state owned cable or a state owned Telkom is in my opinion not the way forward.
Rgds
Kai
-----Original Message----- From: kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke [mailto:kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke] On Behalf Of Wainaina Mungai Sent: Saturday, May 05, 2007 10:35 To: kai.wulff@kdn.co.ke Subject: Re: [kictanet] Day 5 - Statistics on Affordability- CCKInternetStudyReport
Kai said;
The problem is when you create the demand and then some World Bank money starts to compete before you can recover the cost.. ...The private sector needs the Government as a user there as well as the private companies and consumers. [Only then will the prices drop!]
Pricing I would like to assume that competition from government is as good as competition from other market players. The beauty of competition is in the way it forces the private sector to put a smile on the face of every consumer ;-) so as to guarantee revenue. I am convinced that a significant drop in prices results only from fierce competition and some degree of regulation. TESPOK and others fought for years to introduce competition which resulted in the current lower prices of internet and telephony services.
The recent intervention of CCK on the pricing of mobile services is a case that proves that price controls may become necessary to protect consumers. For internet services, we need many 'small scale' providers whose products and pricing would be more market-driven and responsive to fluctuations in consumer needs.
For instance, an internet user paying KShs. 6,000 per month for DSL per month is actually incurring 14 cents per minute for a 30-day month. This is a great deal for any 24 hour user who may even make money through such access to the internet. The same user would be said to incur 28 cents per minute if s/he were to use the link for an average 12 hours per day at the same monthly rate. There may be a catch here but there is a high probability that more businesses can survive on such low rates and pass such rates down to rural consumer.
--- 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.
FROM: kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke [mailto:kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke] ON BEHALF OF Rebecca Wanjiku SENT: Friday, May 04, 2007 10:23 TO: kai.wulff@kdn.co.ke SUBJECT: [kictanet] Day 5 - Statistics on Affordability - CCKInternetStudyReport
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.
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/kai.wulff%40kdn.co.ke
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at
http://kictanet.or.ke/mailman/options/kictanet/rebeccawanjiku%40yahoo.com
Rebecca Wanjiku, journalist, p.o box 33515, Nairobi.00600 Kenya.
Tel. 254 720 318 925
blog:http://beckyit.blogspot.com/
--------------------
Ahhh...imagining that irresistible "new car" smell? Check out [LINK:
http://us.rd.yahoo.com/evt=48245/*http:/autos.yahoo.com/new_cars.html;_ylc=X
3oDMTE1YW1jcXJ2BF9TAzk3MTA3MDc2BHNlYwNtYWlsdGFncwRzbGsDbmV3LWNhcnM-]
new cars at Yahoo! Autos. -------------------- _______________________________________________ kictanet mailing list [LINK: compose.php?to=kictanet@kictanet.or.ke] kictanet@kictanet.or.ke [LINK: http://kictanet.or.ke/mailman/listinfo/kictanet] http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at [LINK:
http://kictanet.or.ke/mailman/options/kictanet/wainaina%40madeinkenya.org]
http://kictanet.or.ke/mailman/options/kictanet/wainaina%40madeinkenya.org
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/kai.wulff%40kdn.co.ke _______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/bitange%40jambo.co.ke
---------------------------------------------- This message has been scanned for viruses and dangerous content by Jambo MailScanner, and is believed to be clean. --------------------------------------------- "easy access to the world" _______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/kai.wulff%40kdn.co.ke
Allow me speak a little deeper "Kenyan" to put the point across citing discussed and concluded OFC and we risk being led into mark timing in OFC tar pit by oligopolists engineers whose ultimate prize is e-government content flowing through "their network". This ultimate prize is worth trying anything because at this moment in time, that dream is highly threatened. One gets the impression there are deep-seated fears regarding market positioning with the imminent true competition that is round the corner. Forget "National Development", "Consumers", "Universal Access" - those will be collateral casualties along the way. This far, consumers menu is BOLDLY printed by as follows: 1. Recipe:- Private Sector (wants, need, partners, sponsors, social responsibility...) Appetizer (WiFi) 1. Butterflies 2. Butterflies 3. Butterflies ... Wine MAXima (WiMAX the - drink) 1. MINE 2. MINE 3. MINE .... FIBRE Main Course -I want and must have it all, I will pull a few for my telco buddies.... Dessert Consumed (Consumers) ------- No need to repeat "competition alone despite all that is said about it was * not* known to benefit consumers. Particularly where duopolies or oligopolies exits because Product and Price shadowing often takes centre stage and one is not sure that the alternatives are not exorbitant. The regulator must also enforce QOS. He added that the consumer must also be ready for a vibrant market and take up alternatives that make the best "cents". He /She must be able to walk out and perhaps to an ombudsman (regulator) where QOS is not as per SLA or other" <OFC_Online_Discussion_Report2.doc> I do not see anything wrong with a cost conscious government saving on all telephone calls and by having a government-owned network throughout the country by investing wisely on cheap fibre cable. (telcom) private sector is broader that 2 GSM duopolist, a couple of PDNOs, and a few LLOs. Alex
Diverting a little- There is an E-learning conference to be held in Nairobi (safari Park) the registration fees are a whooping EUR 500. Now if indeed we have to think seriously of creating mutually beneficial partnerships that benefit citizens and by extension enhance development how would civil society groups including community based organisations engage and indeed benefit from attending such conferences to learn to enable them to take advantage of for example, infrastructure, enabling policy regulatory environment, to enhance e-learning in our schools in marginalised areas? alice Alex Gakuru wrote:
Allow me speak a little deeper "Kenyan" to put the point across citing discussed and concluded OFC and we risk being led into mark timing in OFC tar pit by oligopolists engineers whose ultimate prize is e-government content flowing through "their network". This ultimate prize is worth trying anything because at this moment in time, that dream is highly threatened.
One gets the impression there are deep-seated fears regarding market positioning with the imminent true competition that is round the corner.
Forget "National Development", "Consumers", "Universal Access" - those will be collateral casualties along the way. This far, consumers menu is BOLDLY printed by as follows:
1. Recipe:- Private Sector (wants, need, partners, sponsors, social responsibility...)
Appetizer (WiFi) 1. Butterflies 2. Butterflies 3. Butterflies ...
Wine MAXima (WiMAX the - drink) 1. MINE 2. MINE 3. MINE ....
FIBRE Main Course -I want and must have it all, I will pull a few for my telco buddies....
Dessert Consumed (Consumers) ------- No need to repeat "competition alone despite all that is said about it was *not* known to benefit consumers. Particularly where duopolies or oligopolies exits because Product and Price shadowing often takes centre stage and one is not sure that the alternatives are not exorbitant. The regulator must also enforce QOS.
He added that the consumer must also be ready for a vibrant market and take up alternatives that make the best "cents". He /She must be able to walk out and perhaps to an ombudsman (regulator) where QOS is not as per SLA or other" <OFC_Online_Discussion_Report2.doc>
I do not see anything wrong with a cost conscious government saving on all telephone calls and by having a government-owned network throughout the country by investing wisely on cheap fibre cable. (telcom) private sector is broader that 2 GSM duopolist, a couple of PDNOs, and a few LLOs.
Alex ------------------------------------------------------------------------
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/alice%40apc.org
Dear Alice, "The world is a market place where men goods are on the display, the label is more important than the contents and the price more fascinating than the value" Alex On 5/7/07, alice <alice@apc.org> wrote:
Diverting a little-
There is an E-learning conference to be held in Nairobi (safari Park) the registration fees are a whooping EUR 500. Now if indeed we have to think seriously of creating mutually beneficial partnerships that benefit citizens and by extension enhance development how would civil society groups including community based organisations engage and indeed benefit from attending such conferences to learn to enable them to take advantage of for example, infrastructure, enabling policy regulatory environment, to enhance e-learning in our schools in marginalised areas?
alice
Alex Gakuru wrote:
Allow me speak a little deeper "Kenyan" to put the point across citing discussed and concluded OFC and we risk being led into mark timing in OFC tar pit by oligopolists engineers whose ultimate prize is e-government content flowing through "their network". This ultimate prize is worth trying anything because at this moment in time, that dream is highly threatened.
One gets the impression there are deep-seated fears regarding market positioning with the imminent true competition that is round the corner.
Forget "National Development", "Consumers", "Universal Access" - those will be collateral casualties along the way. This far, consumers menu is BOLDLY printed by as follows:
1. Recipe:- Private Sector (wants, need, partners, sponsors, social responsibility...)
Appetizer (WiFi) 1. Butterflies 2. Butterflies 3. Butterflies ...
Wine MAXima (WiMAX the - drink) 1. MINE 2. MINE 3. MINE ....
FIBRE Main Course -I want and must have it all, I will pull a few for my telco buddies....
Dessert Consumed (Consumers) ------- No need to repeat "competition alone despite all that is said about it was *not* known to benefit consumers. Particularly where duopolies or oligopolies exits because Product and Price shadowing often takes centre stage and one is not sure that the alternatives are not exorbitant. The regulator must also enforce QOS.
He added that the consumer must also be ready for a vibrant market and take up alternatives that make the best "cents". He /She must be able to walk out and perhaps to an ombudsman (regulator) where QOS is not as per SLA or other" <OFC_Online_Discussion_Report2.doc>
I do not see anything wrong with a cost conscious government saving on all telephone calls and by having a government-owned network throughout the country by investing wisely on cheap fibre cable. (telcom) private sector is broader that 2 GSM duopolist, a couple of PDNOs, and a few LLOs.
Alex ------------------------------------------------------------------------
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/alice%40apc.org
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/alexgakuru.lists%40gmail.com
Alex, in other words .. private sector BAD? How come that since we have our restaurant the menue choices are much more and the prices are less than a quarter? Kai ----- Original Message ----- From: Alex Gakuru To: kai.wulff@kdn.co.ke Sent: Monday, May 07, 2007 21:03 Subject: Re: [kictanet] Day 5 - Statistics on Affordability-CCKInternetStudyReport Allow me speak a little deeper "Kenyan" to put the point across citing discussed and concluded OFC and we risk being led into mark timing in OFC tar pit by oligopolists engineers whose ultimate prize is e-government content flowing through "their network". This ultimate prize is worth trying anything because at this moment in time, that dream is highly threatened. One gets the impression there are deep-seated fears regarding market positioning with the imminent true competition that is round the corner. Forget "National Development", "Consumers", "Universal Access" - those will be collateral casualties along the way. This far, consumers menu is BOLDLY printed by as follows: 1. Recipe:- Private Sector (wants, need, partners, sponsors, social responsibility...) Appetizer (WiFi) 1. Butterflies 2. Butterflies 3. Butterflies ... Wine MAXima (WiMAX the - drink) 1. MINE 2. MINE 3. MINE .... FIBRE Main Course -I want and must have it all, I will pull a few for my telco buddies.... Dessert Consumed (Consumers) ------- No need to repeat "competition alone despite all that is said about it was not known to benefit consumers. Particularly where duopolies or oligopolies exits because Product and Price shadowing often takes centre stage and one is not sure that the alternatives are not exorbitant. The regulator must also enforce QOS. He added that the consumer must also be ready for a vibrant market and take up alternatives that make the best "cents". He /She must be able to walk out and perhaps to an ombudsman (regulator) where QOS is not as per SLA or other" <OFC_Online_Discussion_Report2.doc> I do not see anything wrong with a cost conscious government saving on all telephone calls and by having a government-owned network throughout the country by investing wisely on cheap fibre cable. (telcom) private sector is broader that 2 GSM duopolist, a couple of PDNOs, and a few LLOs. Alex ------------------------------------------------------------------------------ _______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/kai.wulff%40kdn.co.ke
Absolutely not! I am private sector remember thus I cannot slap myself in the face. What is bad for all consumers private and public sectors are monopolies and oligopolies. Trade Associations, such like sugar cartels, hoard goods and services to "stabilise" prices to their businesses advantage. I just want to see private sector kiosks, Nandos, Serena (sad "Serena B" was demolished), and Inter-continentals of telecommunication existing side by side. Have a good day Alex Kai Wulff <kai.wulff@kdn.co.ke> wrote: Alex, in other words .. private sector BAD? How come that since we have our restaurant the menue choices are much more and the prices are less than a quarter? Kai ----- Original Message ----- From: Alex Gakuru To: kai.wulff@kdn.co.ke Sent: Monday, May 07, 2007 21:03 Subject: Re: [kictanet] Day 5 - Statistics on Affordability-CCKInternetStudyReport Allow me speak a little deeper "Kenyan" to put the point across citing discussed and concluded OFC and we risk being led into mark timing in OFC tar pit by oligopolists engineers whose ultimate prize is e-government content flowing through "their network". This ultimate prize is worth trying anything because at this moment in time, that dream is highly threatened. One gets the impression there are deep-seated fears regarding market positioning with the imminent true competition that is round the corner. Forget "National Development", "Consumers", "Universal Access" - those will be collateral casualties along the way. This far, consumers menu is BOLDLY printed by as follows: 1. Recipe:- Private Sector (wants, need, partners, sponsors, social responsibility...) Appetizer (WiFi) 1. Butterflies 2. Butterflies 3. Butterflies ... Wine MAXima (WiMAX the - drink) 1. MINE 2. MINE 3. MINE .... FIBRE Main Course -I want and must have it all, I will pull a few for my telco buddies.... Dessert Consumed (Consumers) ------- No need to repeat "competition alone despite all that is said about it was not known to benefit consumers. Particularly where duopolies or oligopolies exits because Product and Price shadowing often takes centre stage and one is not sure that the alternatives are not exorbitant. The regulator must also enforce QOS. He added that the consumer must also be ready for a vibrant market and take up alternatives that make the best "cents". He /She must be able to walk out and perhaps to an ombudsman (regulator) where QOS is not as per SLA or other" <OFC_Online_Discussion_Report2.doc> I do not see anything wrong with a cost conscious government saving on all telephone calls and by having a government-owned network throughout the country by investing wisely on cheap fibre cable. (telcom) private sector is broader that 2 GSM duopolist, a couple of PDNOs, and a few LLOs. Alex --------------------------------- _______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/kai.wulff%40kdn.co.ke________... kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/alex.gakuru%40yahoo.com --------------------------------- Need Mail bonding? Go to the Yahoo! Mail Q&A for great tips from Yahoo! Answers users.
Dear all Talking about government’s engagement in infrastructure development, the Malaysian government, for example was one of the first to attempt to replicate the Silicon Valley model in a developing country. “In its attempt to move the ICT sector to attract domestic and foreign private investment, the Malaysian government invested in creating a world class physical and information infrastructure. Called the Multimedia Super Corridor, this USD 40 billion initiative now serves as the backbone for the country’s information superhighway. The network is supported by a high-speed link, which connects to Japan, ASEAN, the US and Europe. The network is also capable of supporting extensive public, education and business applications”. Beyond infrastructure, the Malaysian government provides attractive tax incentives for world-class technology-led companies to participate in the MSC initiative. And most importantly, it launched actions to provide a well-educated work force with relevant skill levels ranging from technical to research. I see nothing wrong with the Kenya government investing in infrastructure for public good, while private sector supporting this venture by perhaps focusing on the infrastructure as well, technology aspect, content, applications, skills, civil society assisting by ensuring there is demand at the local/rural level, etc The idea here being partnerships. We do seriously need to consider strategies for partnerships, which would involve leveraging the creative potential of the different actors, allowing them to work on the basis of both established as well as new roles and responsibilities. That implies sharing of resources and responsibilities (sharing not shifting risks). For this to happen there is need to ensure that there is sufficient mutual respect and trust between partners to enable them to work together. (The above comments are is entirely personal and do not reflect any position of the organisations I am affiliated with) alice Kai U. Wulff wrote:
Well,
If you tender the capacity you require in Garissa, we will quote a price and commit a deployment of fiber.
Kai
-----Original Message----- From: kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke [mailto:kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke] On Behalf Of bitange@jambo.co.ke Sent: Monday, May 07, 2007 18:10 To: kai.wulff@kdn.co.ke Subject: Re: [kictanet] Day 5 - Statistics on Affordability- CCKInternetStudyReport
Dear All, Please do not be misled. The Government will never compete with anybody. All that is being done is to develop a platform where big and small can reasonably compete. I think Kai is confusing Telkom projects and Government infrastructure projects. If the private sector indeed wanted to do infrastructure projects they will have done so but most private sector have to have a business case first. I wonder why Kai did not do the Garisa route first before heading to Uganda. Please understand that Government has the obligation to provide infrastructure.
Regards
Bitange Ndemo.
My point is:
Yu have limited room for infrastructure since the cost is constant and only increased usage can drop the price. The Government should NOT be a competitor but a price sensitive user!
You will have enough people now competing for the business of the Government and the private users .. That forces prices down. Having a state owned cable or a state owned Telkom is in my opinion not the way forward.
Rgds
Kai
-----Original Message----- From: kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke [mailto:kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke] On Behalf Of Wainaina Mungai Sent: Saturday, May 05, 2007 10:35 To: kai.wulff@kdn.co.ke Subject: Re: [kictanet] Day 5 - Statistics on Affordability- CCKInternetStudyReport
Kai said;
The problem is when you create the demand and then some World Bank money starts to compete before you can recover the cost.. ...The private sector needs the Government as a user there as well as the private companies and consumers. [Only then will the prices drop!]
Pricing I would like to assume that competition from government is as good as competition from other market players. The beauty of competition is in the way it forces the private sector to put a smile on the face of every consumer ;-) so as to guarantee revenue. I am convinced that a significant drop in prices results only from fierce competition and some degree of regulation. TESPOK and others fought for years to introduce competition which resulted in the current lower prices of internet and telephony services.
The recent intervention of CCK on the pricing of mobile services is a case that proves that price controls may become necessary to protect consumers. For internet services, we need many 'small scale' providers whose products and pricing would be more market-driven and responsive to fluctuations in consumer needs.
For instance, an internet user paying KShs. 6,000 per month for DSL per month is actually incurring 14 cents per minute for a 30-day month. This is a great deal for any 24 hour user who may even make money through such access to the internet. The same user would be said to incur 28 cents per minute if s/he were to use the link for an average 12 hours per day at the same monthly rate. There may be a catch here but there is a high probability that more businesses can survive on such low rates and pass such rates down to rural consumer.
--- 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.
FROM: kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke [mailto:kictanet-bounces+kai.wulff=kdn.co.ke@kictanet.or.ke] ON BEHALF OF Rebecca Wanjiku SENT: Friday, May 04, 2007 10:23 TO: kai.wulff@kdn.co.ke SUBJECT: [kictanet] Day 5 - Statistics on Affordability - CCKInternetStudyReport
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.
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/kai.wulff%40kdn.co.ke
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at
http://kictanet.or.ke/mailman/options/kictanet/rebeccawanjiku%40yahoo.com
Rebecca Wanjiku, journalist, p.o box 33515, Nairobi.00600 Kenya.
Tel. 254 720 318 925
blog:http://beckyit.blogspot.com/
--------------------
Ahhh...imagining that irresistible "new car" smell? Check out [LINK:
http://us.rd.yahoo.com/evt=48245/*http:/autos.yahoo.com/new_cars.html;_ylc=X
3oDMTE1YW1jcXJ2BF9TAzk3MTA3MDc2BHNlYwNtYWlsdGFncwRzbGsDbmV3LWNhcnM-]
new cars at Yahoo! Autos. -------------------- _______________________________________________ kictanet mailing list [LINK: compose.php?to=kictanet@kictanet.or.ke] kictanet@kictanet.or.ke [LINK: http://kictanet.or.ke/mailman/listinfo/kictanet] http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at [LINK:
http://kictanet.or.ke/mailman/options/kictanet/wainaina%40madeinkenya.org]
http://kictanet.or.ke/mailman/options/kictanet/wainaina%40madeinkenya.org
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/kai.wulff%40kdn.co.ke _______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/bitange%40jambo.co.ke
---------------------------------------------- This message has been scanned for viruses and dangerous content by Jambo MailScanner, and is believed to be clean. --------------------------------------------- "easy access to the world"
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/kai.wulff%40kdn.co.ke
------------------------------------------------------------------------
_______________________________________________ kictanet mailing list kictanet@kictanet.or.ke http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/alice%40apc.org
participants (10)
-
Alex Gakuru -
Alex Gakuru -
alice -
bitange＠jambo.co.ke -
Eric Osiakwan -
Harry Hare -
Kai U. Wulff -
Kai Wulff
-
Lucy Kimani -
Wainaina Mungai