If ISPs can’t reduce the cost, Let the CCK set the Prices

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Somebody has to speak for Kenyans, somebody has to say the truth about the high cost of internet access. On this blog we have constantly talk about the high cost of accessing the internet in Kenya, despite the fact that the cable is here. Somebody even commented on one of the post labeling the blog as anti innovation, we are not anti anything or anybody, but we are anti people who don?t care.? Without lowering the prices, the ISPs are not helping anybody. The truth is, from the beginning most Kenyans ?were unable to access internet not because it was slow but because of the high cost of accessing the internet.

Most ISPs are arguing that they have invested heavily on the last mile connections, others like Safaricom are talking about the money they have invested in cables like TEAMS. The way I look at TEAMS is that it is a company on its own or stand alone venture. So it s upon TEAMS to generate the money from which the investors will recoup their Return on Investment(ROI). TEAMS will charge the ISPS whatever the amount it deems fit, putting into account the initial investment by the shareholders, plus the expenses and the profit.? So ISPs should leave it to TEAMS to talk about the amount invested on the cable.? From that as we have said before it does not make sense that Seacom? reduced the cost of bandwidth per megabyte by 90% , but ISPs insist on retaining the same pricing to consumers.

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According to Mr.Bitange Ndemo, the cost of bandwidth per megabyte should be lower than $600, actually closer to $200. ?Mr. Ndemo posed a serious question which each ISP in Kenya should answer ???If few Kenyans could afford the bandwidth, who are you doubling for? For the economy to grow broadband has to be available to Kenyans.? Yes, now every ISP is talking about doubling the capacity to the consumers at the same price…

Many Cybers in town are now offering very fast internet, an indication that they are already connected to the cable but they can?t reduce their prices because all that is in the hands of ISPs. ?We will encourage Mr. Ndemo to continue and speak out for Kenyans. Government controlling the prices is not the best way to go but it has reach a point that many will agree that somebody has to stand out and do the right thing.

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