On Wed, Aug 12, 2009 at 10:52 AM, Rahim Kara
<rahim@applecentre.co.ke> wrote:
I Concur.
The pricing is still relatively archaic. It's like saying we're paying for a lease line ( 2001 Pricing ) for a direct connection to an ISP Kenya and recieving their 32Kilobit connection
For a 1Meg link the price of 600$ may be fair however it is not "Low" this is still just my opinion.
Rahim, if your service provider is buying dedicated capacity from KDN or Safaricom etc ( those network operators who are on Seacom ) and selling it onwards, then this example of cost reduction :
Eg : Service Providers say currently charges 1Mbit/512kbps @ Kshs 70,000/- per month . If they are on Seacom, then the rate for the same package should today be less than Kshs 20,000/- per month.
Why the price drop? Because what KDN offers is what Service Providers buy. So KDN guarantees that the 600USD/Mbit ( compared to 3500USD/Mbit ) from the internet backbone to service provider network. Then the service provider, using built in mechanisms, shares the services to end users which really is good as users dont have to pay high rates on dedicated services.
Incase you may not understand dedicated and shared : when you place an international call, you pay for an end to end connection between you and the other party. In data networks, core capacity is guaranteed in circuits that carry the data ( Mbit/s ). Shared call services will drop calls as busy and end connection cannot be found while in data, the connections are queued which basically means slow speeds. HTH's.
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