Communications Commission of Kenya Internet Market Analysis Study: Indicators

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Communications Commission of KenyaInternet
Market Analysis Study Indicators Data Sources
November 1, 2006 Kenya College of
Communications and Technology, Mbagathi
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Agenda

• Why the study?
• Indicators
• Sources of Data
• Data collection methodology
• Data analysis methodology
• Uses of the findings

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1. Why the study?

• Belief that Internet development is critical to
  development of the ICT sector to national
  development (high contribution to GDP) 10.9 of
  GDP for Transport, Storage Comms
• Concern that Internet access still lags behind
  other services (e.g. mobile) in the ICT sector
  despite sustained liberalization efforts
• Lack of information on the Internet service
  penetration, its impacts and factors that
  influence its development and diffusion
• Obtain information that will influence policy and
  regulatory decisions/interventions on Internet
  sub-sector (evidence-based policy and regulation)
• Create a baseline/reference for a perpetual
  interactive Internet market database that will be
  useful to policy makers, researchers, existing
  suppliers, new investors and other stakeholders
  interested in the Internet market

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• 2. Indicators

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2.1 Network access indicators

• Information infrastructure
• Mobile fixed line teledensity
• Internet availability
• Internet pervasiveness (users per 100
  inhabitants)
• Broadband Internet subscribers per 100
  inhabitants
• International gateway uplink/downlink bandwidth
  per inhabitant
• National leased line bandwidth per user
• Geographical dispersion of Internet POPs users
  (POPs per district users per district)
• PCs per 100 inhabitants
• No. of SMSs per year per mobile user

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• Internet affordability
• Revenue per user
• Average mobile cellular tariff for 100 minutes of
  use per month as a of GNI per capita
• Average dial up Internet access tariff for 20
  hours of use as a of GNI per capita
• Average mobile Internet access cost per Megabyte
  as a of GNI per capita
• Cost of 100 local SMSs as a of GNI per capita
• Network speed and quality
• Total national IXP bandwidth per 100 inhabitants
• Average faults per link per month (leased links)
• Average Internet bandwidth per user

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2.2 Environmental influences

• Technological infrastructure
• Size of national backbone data infrastructure
• Spread and accessibility of national backbone
  data infrastructure
• Communication media in the backbone network ( of
  bandwidth in different media types)
• Communication media in the local access network
  ( of bandwidth in different media types)
• Geo-socio-economic
• Physical geography of different locations
• Ease of use (literacy levels, availability of
  relevant local content, etc.)
• Culture of entrepreneurship
• Cost of Internet access relative to income levels
• Tariffs for the national backbone data
  infrastructure, including interconnection tariffs

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• Legal and regulatory frameworks
• Existing laws and regulations
• License conditions and pertinent regulatory
  decisions
• Cost of licenses at each level of the Internet
  market as of total revenue of the market
  segment
• No. of licensees in each market segment
• Cost of radio frequency licenses as a of total
  revenue
• Market
• Rate of duties and taxes on communications
  equipment and services
• Availability of skilled labour
• Investment requirements and levels
• Cost of regulation
• Other factors

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• 3. Sources of Data

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3.1 Review of the historical development of the
Internet market in Kenya - MK
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(No Transcript)
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3.2 Analyze vertical and horizontal
relationships of the Internet market - VK
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3.3 Compare the Internet market in Kenya with
comparable developing countries - MK
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3.4 Analyze the Internet diffusion and usage
patterns in different sectors of the Kenyan
economy over the last 5 years
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3.5 Outline general Internet service costing
mechanisms employed by operators and service
providers at different hierarchies - VK
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3.6 Identify factors that have affected the
development, spread and growth of Internet
services in Kenya
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4. Data Collection Methodology

• Document review
• Operators and service providers
• CCK
• Other stakeholders, e.g. CBS, KRA
• Structured and unstructured interviews with
  relevant persons in operators and service
  provider firms
• Focus group discussions, especially on historical
  development of the Internet and factors affecting
  the development, spread and growth of Internet

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5. Data Analysis Methodology

• Data capture and verification - data captured
  using RDBMS
• Preliminary data analysis using the query
  utilities in RDBMS
• Review of indicators, sub-indicators and
  variables
• Importation of the database into SPSS
• Analysis of data using SPSS to provide the
  required reports
• Staging of the various indicators
• Developing the Internet market database

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6. Uses of the Findings

• Researchers, including students
• Data to inform research projects
• Operators and investors (new and existing)
• Decisions on investment
• Government
• Policy and regulatory intervention
• Universal access decisions
• Customers and the public
• Status of Internet in their locations
• Tariffs and pricing mechanisms

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Thanks