ISPs can learn from the GSM price war

The cost of bandwidth is very expensive in Kenya. Reason: we depend on satellite, and the cable is not yet laid.

ISPs have been singing the cable song for so long that most people have given up and are down on their knees hoping that the cable will not be another distant dream. Kenya is hoping to push traffic through EASSy, TEAMs, SEACOM and FLAG. Currently, TEAMs and SEACOM offer the most realistic chances.

EASSy has been bogged down by politics, indecision and vested interests, while nothing much has been heard about FLAG - fronted by the Indian Reliance group.

Whether the cost of satellite space is expensive or not, the ongoing price war has proved that companies can lower the cost of connectivity if they want.

The ongoing tussle for subscribers between Safaricom and Celtel was triggered by entry of other GSM service providers.

I wonder what the government should do to trigger such vicious competition between ISPs. If the prices come down, people will have an appetite for the services because, right now, small and medium enterprises are put off by the cost of connectivity.

The competition will also raise awareness and the need for connectivity, which will be collateral advantage.

The government should come up with a trigger for the ISPs to force them to act and start the competition; right now they are comfortable.

Safaricom and Celtel have demonstrated that it's possible.