>With regard to the "who gets what" discussion, I am informed by a
>local customer of KPTC that of the approximately $12,000 paid for a
>128kbps line, only about $3000 is "exported". A 64kbps line is only
>a bit cheaper, perhaps $10,000 a month -- my notes are back in the
>USA somewhere -- sorry for the vagueness.
If I read my mail correctly, Shem quoted 16000 $US per month
for what I assume is a 64 KB link, plus 5000 $US per year
plus 10000 $US installation fee. I assue he know how much
the check reads that he signs every month.
Namibian TeleCom quoted us approximately 7000 $US per month for
64KB and there was definitive room for negotiation for about 1000 $US
per month so this would most definitively support your 3000 $US export.
>OK, as a benchmark, the lowest available cost to deliver a 64kbps
>TCP/IP link from end to end (duplex I believe the gurus call it) is
>about $1000 per month. If the price charged to ISPs in Kenya is
>$10,000 per month, then KPTC may be extracting as much as $9,000 per
>month in monopoly rents. I call it monopoly rents because, as Shem
>points out, KPTC doesn't allow competition, e.g. from private VSAT.
>But it would be nice to hear what KPTC has to say about that.
>Wouldn't want to be unfair! 8*)
Sure, but what's your point?
>What fascinates me is that Africa Online and ARCC and FormNet can
>all pay that fee to KPTC, plus the annual license fees, plus some
>fee for monthly Internet access on the international side, plus all
>kinds of other operating expenses, and STILL generate enough
>revenues to cover costs, while charging prices that are not
>particularly high. (I'm just assuming they're all covering costs...
ARCC is supported by the ODA, Africa Online is part of a US based
concern which has links in other places such as Ghana and so on.
I don't know anything about FormNet.
What fascinates ME :-)-O is that Africa Online and ARCC and FormNet
can EACH pay that fee to KPTC, plus the annual license fees, plus some
fee for monthly Internet access on the international side, plus all
kinds of other operating expenses, INSTEAD of pooling resources
such as trying to have a joint backbone.
And before you ask, NAMIDEF immediately went with another
(commercial) provider to a joint backbone, as soon as the offer
>Mark mentioned private sector firms charging "whatever they can get
>away with". I guess I haven't seen any ISPs getting really rich out
>there. The place where prices don't seem to be more or less in line
>with costs is with some of the PTTs.
Oh well, you are in Johannesburg, hop over to Internet Solutions,
they charge whatever they can get away with, such as 7000 $US
per month to each of their Namibian ISP customers that have
or rather had ACCESS to their 64 KB connection via a local digital
64KB link. That connection is said to be upgraded to 128 but that's
besides the point. Because of their prices two of their three ISP
customers immediately ran away as soon as competitive
bandwidth providers came on the Namibian market. The third
one went belly up six month ago.
Dr. Eberhard W. Lisse \ / Swakopmund State Hospital
<[log in to unmask]> * | Resident Medical Officer
Private Bag 5004 \ / +264 64 461503 (pager) 461005 (h) 461004 (f)
Swakopmund, Namibia ;____/ Zone/Domain Contact for the NA-DOM
Vice-Chairman, Board of Trustees, Namibian Internet Development Foundation,
an Association not for Gain. NAMIDEF is the Namibian Internet Service Provider.