By SubTel Forum

Cut your prices or risk and official price cap.  That's the warning the Kenyan government has given ISP's according to an article on allAfrica.com.  The firms have been given a March deadline to reduce bandwidth costs.

Until recently, ISPs were paying up to $6000/megabyte for satellite capacity, but since the arrival of SEACOM and TEAMS, their costs have dropped to $200 for the same capacity.  This has not been translated to the end user, however.

"Indeed the government is concerned that landing of the two cables has not had a profound impact on bandwidth costs and extension on retail internet prices" he said. "If we do not see any changes in retail prices for internet, the government through the Communication Commission of Kenya will consider introducing price caps for bandwidth," George Khaniri, Assistant Information Minister said.

Click here to read the original article.