High internet subscription fees and costs of acquiring computers have kept off consumers from using the web two years after the fibre optic cable went live in Kenya, a new survey shows.
The survey dubbed Julisha-commissioned by the Kenya ICT board-shows that 58 per cent of consumers indicated that they have no internet connection since they lack computers, while 28 per cent who have computers, cite the cost of internet subscriptions as a hindrance.
“Telecoms have discovered that without gadgets that can be used to access the internet, then subscription will remain a challenge.
But if consumers cannot also afford the subscription fees, then internet usage will remain low,” said Mr Francis Hook, one of the researchers. The revelations now put on the spot the effectiveness of government interventions in bringing down the cost of accessing the internet and computers.
It is has also renewed debate on whether government has failed to compel service providers to pass on the benefits of increased bandwidth and tax-breaks to consumers months after President Kibaki added his voice on those seeking lower costs.
The government has invested billions of shillings in fibre optic networks and waived duty on imported electronics with the hope of lowering internet costs. The research done by International Data Corporation surveyed residential users from select towns across Kenya, also show that out of the 6.3 per cent of Kenyan households that have computer only 2.2 per cent have internet connections.
The research was conducted between August and September this year. Pass cost to consumers But wholesalers maintain that they have done their part in reducing the costs and that it is upto retailers to pass the same costs to end users. Before the landing of under marine cables, a megabyte on wholesale was selling at between Sh360,000 and Sh540,000 a month but the price has been reduced less to Sh45,000, 10 times less.
Businesses cite costs of setting up and maintaining infrastructure, license fees, vandalism as factors keeping the costs high. “Since the landing of the fibre optic cables, staff costs have been going up consistently. “Today we are competing with both local and international telecommunications companies and this means that we have to remain competitive to retain staff,” said Mr Kris Senanu, the managing director of internet division at Access Kenya.
Access Kenya operates as both a wholesaler and retailer of internet services. “Costs of frequency licenses and support costs that come with handling down-times are also the factors that are influencing internet pricing,” Mr Senanu told the Daily Nation in a telephone interview. Currently the firm is charging Sh25,000 for small-and-medium enterprises for a one megabyte link per month, while home consumers have to part with Sh9000.
The cheapest laptop is sells for about Sh25,000. Safaricom, which controls the bulk of mobile internet consumers, who account for over 80 per cent of access to the internet, is charging between Sh1.25 to Sh2 per megabyte. The cost barrier promises to water down the government efforts to digitise its services and provide services like registration of businesses, issuing permits, and paying taxes online since consumers, especially in rural areas if consumers cannot afford the internet services.
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