Internet Market Study

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Internet Market Study
Methodology Deliverables Victor Kyalo
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The Hierarchical View

• The traditional view of the Internet saw the
  Internet described as a hierarchy of providers
• Segmentation of Internet Providers into a number
  of tiers
• Each ISP purchases service from a single provider
  at the next higher tier
• Each ISP sells service to multiple customers at
  the next lower tier

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The Hierarchical View
End User
End User
End User
End User
Littler ISP
Littler ISP
Littler ISP
Littler ISP
Littler ISP
Little ISP
Little ISP
Little ISP
Big ISP
Big ISP
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Non-Hierarchical Evolution

• May peer across tier levels
• May use paid peering as a form of limited
  provider-based transit services
• (the use of peering in the service name is
  purely cosmetic the outcome is a provider
  service without third party transit)
• May use a settlement metric
• (again the term is normally cosmetic in most
  cases it can be regarded as a conventional
  service tariff)

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Non-Hierarchical EvolutionTodays Internet
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Internet Shape

• The network is becoming less stringy and more
  densely interconnected
• i.e. Transit depth is getting smaller

Distance
Distance
Span
Span
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Networked Access

• Key ICT readiness factor is access to network
  infrastructure
• The larger telecommunication sector is the scope
  of study in this exercise

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• The Indicators used to assess the readiness level
  of this category are
• Information infrastructure
• Internet availability
• Internet affordability
• Network speed and quality
• Hardware and software
• Services and support

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Information Infrastructure

• Telephone penetration this is considered for
  both the fixed and mobile networks.

• It is imperative to note the following
• this statistics are skewed in favor of Nairobi
  Coast regions. ref regions teledensity chart
• Based on the critical sectors for economic
  development, i.e agriculture, there is still
  quite some ground to be covered.

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Teledensity Per Region
R/Valley
Nyanza
Western
Coast
Teledensity
N/Eastern
Eastern
Central
Nairobi
0.0
5.0
10.0
11
of Lines
SMEs
Saccos
Professional
Personal
Payphones
Parastatals
NGOs
International

Health
GOK
Financial Institutions
Educational
Commercial
Bureaus
Agriculture
0.00
20.00
40.00
60.00
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• Development Stage
• For fixed lines the assessment is estimated to be
  in stage 1. For Mobile lines it is estimated to
  be in stage 3.
• Overall this indicator is estimated to be in
  stage 2.

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• Critical Issues strategies

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Internet availability
This indicator is concerned with the number and
reach of ISPs, their range of services and
transmission capacities. It also assesses the
public access to the Internet. This attributes
we measured and analyzed as follows

• ISPs
• Registered ISPs gt72
• 29.8m/16 1.86m per active ISP
• Offer email, full internet access, web hosting,
  etc.
• Distribution (mainly in the towns)
• Competition????

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• Access modes
• Dial-up is the main mode of access by many of the
  users (interviewed)
• Analog digital lines distribution (mainly for
  businesses)

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Coverage
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R/Valley
7
Nyanza
2
Western
10
Coast
Coverage
2
N/Eastern
3
Eastern
3
Central
57
Nairobi
0
20
40
60

• Public access is mainly through cyber cafes whose
  rates are low compared to the telephone charges.

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• Internet Backbone
• Jambonet accounts for 100 outgoing international
  bandwidth estimated at 20.512Mbps.
• Jambonet accounts for approximately 80 of the
  incoming international bandwidth approx.
  56.521Mbps. The other 20 is made-up of downlink
  by ISPs and other universities (UoN, USIU, KU,
  etc)

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• Development stage
• Assessment for this indicator was stage 2. The
  following factors were predominant.
• limited number of ISPs i.e more the 1m people
  per ISP
• limited access to public access (most cyber
  cafes concentrated mainly in urban areas)
• dial-up links are difficulty to establish (gt70
  failure rate on 1st attempt)
• leased line provision is a monopoly

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• Critical Issues strategies

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Internet affordability

• The indicator looks at the price of access both
  telephony and ISP charges. Affordability is
  looked at in respect to earning power,
  competition, and in comparison to other
  communities.
• Tariffs
• The local tariffs are fairly comparable with
  those of other countries such as Uganda,
  Krygyzstan, etc. However the international
  tariffs are high.
• Most dial-up users (though) pay for a local call
  to access the Internet. In relation to the per
  capita income, the total Internet access through
  dial-up is very high.
• Internet access through cyber cafes is cheap (Us
  0.013 per minute). This is approx 50 cheaper
  than the telephone call charge.

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• Development stage
• Assessment for this indicator is estimated to be
  stage 2 where.
• local access solutions exist but rates are high
  discouraging extensive usage.
• Lack of competition in the provision of
  commercial leased lines is reflected in
  prohibitively or high leasing fees.

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• Critical Issues strategies

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Network speed quality This indicator looks at
the available b/width, the numbers of users and
types of online activities supported by the
network. The quality of the network is also
considered.

• Local completion rate is 71.4 (compare to approx
  60 from the collected data)
• More than 90 of the interviewed respondents
  experience more than 5 telephone faults p.a.
• Though the international b/width capacity is
  high, the internal b/width within different nodes
  was not established.

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• Development stage
• Assessment for this indicator is estimated to be
  stage 2 where.
• 50-70 of the local calls are successful
• dropped calls are frequent and extremely
  disruptive
• 50 to 100 faults are reported pa for each 100
  lines
• Telecommunications infrastructure in most areas
  support dial-up modem transfers.

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• Critical Issues strategies

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Hardware software Focuses on the availability
of h/ware s/ware and its customization to local
needs.

• there is local availability of h/ware s/ware as
  affirmed by the survey with 77 and 80
  respectively reporting adequate availability.
• this is also supported by the fact that all the
  leading ICT h/ware software houses have a local
  presence and/or strong representation.
• locally developed software is estimated at 50
  based on the survey. This is also the case with
  customization of products locally.
• nevertheless locally assembled PCs stand at a
  dismal 9.5. (Maybe attributed to the higher
  CKDs duty vis-à-vis duty on the complete unit).
• cost of PCs is estimated in the range of US500
  1,000 which though high, compares well with
  international prices.

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• Development stage
• Assessment for this indicator is estimated to be
  stage 3 where.
• most products are sourced from abroad, but there
  is a strong and strong localization industry
  (especially for software products)
• software appropriate to the local needs and
  language is available.
• a variety of h/ware s/ware solutions are
  available and affordable to most SMEs as well as
  individuals.

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• Critical Issues strategies

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Service support This indicator considers
customer service orientation, service provision
and faults repair waiting periods. It also
considers the availability of skilled technical
personnel.

• more than 60 of the users wait for 6months and
  more for service provision. (subject to network
  availability and capacity)
• most of the providers are aware of the need for
  customer care. Response stands at approx 50 for
  lt 7 days attendance to internet lines related
  faults. This is coupled by the availability of
  online support availability of approx 60 from
  most providers.
• availability of good support staff stands at
  approx 60 and for good web designers at 80
• international prices.

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• Development stage
• Assessment for this indicator is estimated to be
  stage 2.5 where.
• it takes at least 6mths to be connected.
• it takes over 1mth for a mainline problem to be
  resolved.
• A nascent s/ware industry is present and there is
  a growing number of h/ware technicians, web
  designers and network administrators.

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• Critical Issues strategies

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