[Mispa-management-l] MMC Meeting proposal - 20 Dec 2019 - (Fwd) Afrimax Limited: Charges for Throughput Access to Google and Akamai Cache

[Dr P Nyirenda]

MMC,
MISPA,

It appears that there are a number of issues that have arisen on MISPA and MIX that need
the attention of the MISPA Management Committee and here is one of them from AFRIMAX
copied here below.

I would, therefore, like to propose a meeting of the MISPA Management Committee on
Friday, 20 December 2019, from 10am.

Please confirm if you will be available for such a meeting at College of Medicine in Blantyre.

Regards,

Paulos
======================
Dr Paulos B Nyirenda
NIC.MW & .mw ccTLD
http://www.registrar.mw
Tel:  +265-(0)-882 089 166
Cell: +265-(0)-888-824787
WhatsApp: +265-(0)-887386433



------- Forwarded message follows -------
From:	Kamar Abass <kamar.abass at afrimax.net>
To:	P Nyirenda <paulos at sdnp.org.mw>
Copies to:	Prince Azubuike <princeazubuike at gmail.com>
Subject:	Afrimax Limited: Charges for Throughput Access to Google and Akamai
	Cache
Date sent:	Thu, 5 Dec 2019 10:14:30 +0000


WITHOUT PREJUDICE

Dear Dr. Nyiranda,

We write, on behalf of Afrimax Limited, a MACRA-licensed ISP operating in Blantyre.
In this connection, Afrimax is a member of MISPA and is presently connected to the MIX.
In addition, Afrimax takes capacity from MISPA´s Google and Akamai caches.

The current commercial arrangements, for access to MISPA caches, are for a flat fee of $35
(thirty-five US dollars) per Mbps for cached content.
In addition, excise duty and VAT are applied, taking the total cash cost of connectivity to
these caches to almost $45 (forty-five US dollars) per Mbps.
And this price is levied before we must face the exchange rate risk applicable between MWK
and USD rates.

The effect of this pricing is to prevent Internet data charges from being reduced, even though
average levels of customer usage are rising.
The opportunity to provide customers with improved value for money will enhance
productivity, grow incomes and drive beneficial new investment.
This empowerment and transformation opportunity, which is at the heart of the global digital
agenda, is therefore being undermined by artificially high prices for IP content.

And we say artificially high because we have been offered prices for direct IP Transit, by
TTCL, of Tanzania, that are as low as $40 per Mbps.
And there prices are being offered for capacity commitments of no more than an STM-1.

With this alternative pricing level, there can be no justification for cached capacity to be
offered at around $45 (note that capacity payments to TTCL will attract no Excise duty or
VAT).
We would therefore ask for your assistance in urgently reviewing these prices downwards,
substantially, for the 2020 calendar year.
In addition, we ask that we move collectively to pricing for cached content in local currency:
why should forex risk be passed to relatively small ISP who have no opportunity to earn
Forex.
Whereas Malawi´s major operators earn significant Forex from inbound IDD calls, which
outweigh Inbound IDD, so achieve positive net IDD revenues in Forex.
This "surplus" can thus be applied to IP Transit prices by the major operators in a way that
ISP, who earn no Forex cannot

We discussed that this matter is to be discussed at MISPA´s December 2019 Management
Committee meeting.
I should be pleased to attend this meeting, to represent the views in person with industry
colleagues.
Kindly therefore extend an invitation to me, to this end.

In addition, please feel welcome to share these views with other industry colleagues to
garners support for their early implementation.
With kind regards,
KA

K. Abass
Afrimax Limited
www.afrimax.net
hello at afrimax.net
01 831 706


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