Wazua
»
SME
»
Ideas
»
GETTING INTO THE ISP BUSINESS
Rank: New-farer Joined: 11/30/2009 Posts: 10
|
Thanks Kula,
A 10 MB international line is approx 300 k monthly.
AK normally was working on a 4: 1 ratio so they would have sold 40 MB on that line.
Please note that you have not taken into account the last mile cost.
I gather that the current problem with AK is the last mile as if your base station can handle 20 MB it will not allow 4x to pass through.
|
|
|
Rank: Elder Joined: 7/26/2007 Posts: 6,514
|
Cooks, thats really interesting. I looked up contention ratios and globally isps that earn 15% EBITDA have 50:1 ratios. AK is earning 45%.....doesnt add up. Business opportunities are like buses,there's always another one coming
|
|
|
Rank: New-farer Joined: 11/30/2009 Posts: 10
|
Kularaha,
With whatever money you were going to invest in the start up- go and buy AK shares at 20 bob right now.
You don't have to buy their service.
If they made 45 % last year and this year their bandwidth cost reduced by 70 % and their prices stayed the same and they retained customers- This year will be WOW!!!
Target price 50 bob by june next year!
Pss don't tell everyone
|
|
|
Rank: Elder Joined: 7/26/2007 Posts: 6,514
|
cooks, only one fatal flaw in your logic mate...."they retained customers" (Perhaps thats why their main shareholders are busy selling their holdings?) Business opportunities are like buses,there's always another one coming
|
|
|
Rank: New-farer Joined: 11/30/2009 Posts: 10
|
hey kula you said it earlier:
"cooks, if I can make 30% return instead of 60% return and keep increasing my connections rather than be in flatline like access etc"
the logic is sound...
|
|
|
Rank: Elder Joined: 7/26/2007 Posts: 6,514
|
Id rather go with my 30% with a chance of increasing connections...if AK's shareholders dont have faith in their own company, who am I to go drown there.... Business opportunities are like buses,there's always another one coming
|
|
|
Rank: Elder Joined: 9/15/2006 Posts: 3,907
|
Source: Telkoms Forum
Presently, the price for satellite connectivity is US$ 1 900 per Mbps per month, whereas the expected price for submarine cable connectivity drops dramatically to US$ 90 per Mbps per month
-Let's assume price per MB is approx $400 from KDN.
-Currently Access charges 128kbs (one-tenth) at 16,000+vat per month
-Last mile currently uses is point to point on unlicensed spectrum
It's become a regulatory issue that ISPs have decided to absorb benefit of reduction citing investment costs. Government will step in sooner or later and then new price discovery will take place.
|
|
|
Rank: Elder Joined: 9/15/2006 Posts: 3,907
|
Note also from ComputerWorld Forum
KDN Butterfly allegedly dropped by 90 percent and Access Kenya doubled subscribers bandwidth at the same cost.
You cannot do this if your pricing is optimum - you must have a lot of room. I'd say Access can only focus on customer retention - hey days may be over. Key company that's positioned itself well for now is KDN who's providing backhaul [Nbi-Msa] to almost everyone. And a number of Kenyan telecom companies go down when their cables are cut.
|
|
|
Rank: New-farer Joined: 12/9/2009 Posts: 23 Location: Nairobi
|
KulaRaha, stay strong in your venture. We're behind you as your first customers. We're tired of being taken for a ride. And the worst thing is, this ride we're being taken on is real slow.
|
|
|
Rank: Elder Joined: 11/19/2008 Posts: 1,267
|
Id too say..... Kularaha go for it...and report/advertise here ..youll be amazed at the uptake...that is if you meet the three goals stated in your initial post realistic pricing et al. Isaiah 65:17-Look! I am creating new heavens and a new earth, and no one will even think about the old ones anymore
|
|
|
Wazua
»
SME
»
Ideas
»
GETTING INTO THE ISP BUSINESS
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.