Kenya-Connectivity Costs Remain High Despite Arrival of Fibre Optic

The arrival of the fibre optic into East Africa was feted as a definite ingredient that would spur more use of ICT and therefore catalyze the development process.
In Kenya, all people who mattered from politicians, to telecommunication managers and engineers were full of praise for this development.
What with an apparent increase in quality of connectivity in terms of speed as well as what was touted as a definite decrease in connectivity costs.
Today, almost one year later since the launch of the cable on the Kenyan cost, which was marked by lots of hype, including the head of state, HE President Mwai Kibaki, the real benefits of the fibre optic is yet to be seen. This is so especially in terms of the cost of connectivity.
Cyber cafes within Nairobi and Mombasa are still charging the average of Kshs 1 (USD 0.13) per minute which is the same as was being charged a year ago.
Asked why the charges still remain high, the response is that they ave to transmit the connectivity costs charged by providers to the consumer. “We have to remain in business,” says Mwangi, a café manager in Nairobi’s Moi Avenue. “After all what is Kshs 1.00 per minute. Virtually everybody could afford it”.
However, Information and Broadcasting Permanent Secretary Dr. Bitange Ndemo is a bitter man. His bitterness is based on what he feels to be exploitation of the local people by Internet Service Providers.
Dr. Ndemo was quoted in a recent edition of Kenya Today, a publication of the ministry of Information, as hitting out at ISPs for maintaining high costs despite the presence of the fibre optic connection which is aimed at providing dual benefits in terms of better quality and lower costs of connectivity.
Dr. Ndemo’s anger was also accompanied by a threat to ISPs to either reduce their charges on connectivity or have the ministry coming in with price controls on connectivity.
Some players and analysts are arguing that price controls should not be a solution given that Kenya is an avowed capitalistic society. However, it may be important to note that just under two years ago, when petroleum pump prices remained unreasonably high despite a decline in world crude oil pump prices, it took no less than an threat by the Kenyan energy ministry to constitute price controls before dealers voluntarily though reluctantly adjusted their prices southward.
Way back before the arrival of the fibre optic into East Africa, key players in the sector had warned that though the benefits on speed and quality would be instant, the cost benefit would take quite a while as shareholders will want to first recoup the massive laying expenditure. This recovery could take several years.
However, it is instructive to note that the fibre optic benefits are presently majorly being felt within main urban centres like Nairobi and Mombasa. Remote areas are yet to gain and rely mainly on VSAT which is expensive and unreliable at times especially during stormy weather.
These high costs have and still remain a great challenge to the content sub-industry. The information highway has over the years transformed the world into a global village with information sharing being efficient, easy and swift.
However, those in the rural areas remain disadvantaged by the absence of reliable and affordable connectivity. Even in the urban areas, this is still a challenge given that Kenyan urban slums which play home to millions of dwellers many of whom live below a dollar a day view this as a luxury.
Adaptation of ICT in all facets of  development is identified by many nations as a key component towards development and industrializations.
Taking this to the grassroots is vital since the rural areas are also significant contributors in the development of economies albeit in primary or processing industries as opposed to the urban centres which are mainly manufacturing and service based.
There is a lot of information at the rural grassroots especially in regard to agriculture which ought to be shared out. These range from various technologies, crop and animal husbandry, how to deal with certain diseases and pests, how communities cope with climate change among others.
This is information that can easily be communicated across and within  borders , but first the cost of connectivity has to be just right.

By Damas Ogwe.

Submitted by Cleopa on Fri, 03/05/2010 - 07:01.