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

[Tayamika Jumbe]

I am available on the day.

 

Tayamika

 

From: Mispa-management-l <mispa-management-l-bounces at sdnp.org.mw> On Behalf
Of Dr P Nyirenda
Sent: 09 December 2019 11:32
To: mispa-management-l at sdnp.org.mw
Cc: mispa-chair at mix.mw
Subject: [Mispa-management-l] MMC Meeting proposal - 20 Dec 2019 - (Fwd)
Afrimax Limited: Charges for Throughput Access to Google and Akamai Cache

 

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
<mailto:kamar.abass at afrimax.net> >

To:                            P Nyirenda <paulos at sdnp.org.mw
<mailto:paulos at sdnp.org.mw> >

Copies to:                  Prince Azubuike <princeazubuike at gmail.com
<mailto: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

 <http://www.afrimax.net> www.afrimax.net

 <mailto:hello at afrimax.net> hello at afrimax.net

01 831 706

 


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