For the past 3 weeks or so, Nipun, Nick and others have been running about Nairobi scouting and getting permissions to mount FabFi equipment on towers and roofs as well as connections into the internet. They’ve settled on some sites which broadly speaking are the Mountain View area (which includes some of Kangemi) and Loresho (and some of Kangemi).

Mountain View and Loresho are the two possible areas for the pilot. The orange circles are internet uplinks for the network.
We wanted to make the backhaul connections along schools and examined the communities near Nairobi School and Kangemi School. In both cases we could see different socioeconomic strata pressed up against each other and somewhat well mixed.
We had to choose one of the areas to build out first. Making the 5 GHz backhaul among the main repeater sites and the internet uplinks as well as making local omnidirectional 2.4 GHz wireless AP’s at each repeater site consumes approximately 1/3 of the devices we budgeted. We estimate that building out any one area will consume the remainder of the devices. So it seems we must chose one area to build first and use the profits from the first to buy the devices to build out the second.
For many reasons the Mountain View area wins. We’re now prioritizing building up expanded access around Kangemi school and Mountain View areas. The technical team now mostly turns to getting equipment up and working.
Nipun has a homework assignment to work the numbers to figure out what the price(s) should be for the paid “Premium Service Level” – that’s how we make our nut. Here’s his assignment, I’m sure you b-school folks will get all kinds of excited.
The analysis has two components:1) Determine long-term “sustainable” pricing for the system based on going tier1 bandwidth rates. This is for the conservative case where we’re collecting no revenue other than from selling bandwidth.
2) Assuming free bandwidth, what do we have to price at in order to finance duplicating our current deployment in three months? (see hardware cost below)
Here are the inputs:
- Residential market price for bandwidth @1Mbps (assuming 1/3 of operator cost is bandwidth this is about a 20:1 contention ratio) = 4,999KES/mo (zuku)
- Going rate for backhaul (tier 1) = 32,730KES/(Mbit*mo)
- We should have a contention ratio the same or better than other providers
- Deployment to Kabete / Mountain View with backhaul will consume ~810,250KES worth of hardware (attached is a potential coverage map).
- We assume about 10% of the bandwidth will be consumed by “free” customers (but we don’t know. Maybe your analysis will dictate QoS rules…)Assume the average device must be replaced once every three years
Required outputs are prices for access-cards of the following duration:
- 1 day
- 1 week
- 1 monthIn long-term case fees will have to cover:
- Bandwidth costs
- Staff (150,000KES/mo)
- Local Transport (black van with no windows…)
- Overhead (legal, g&a, etc)
- Maintain physical system
- Expand physical footprint on a reasonable timescaleShort term, we’re only concerned with making 810,250 KES above our costs, after staff in 3mo.
Our model is that you can always connect for free using the unused part of the bandwidth. Wikipedia and some domains such as .edu, .edu.ke, .gov, some locally mirrored content such as MIT’s Open Course Ware, and similar resource information type sites are exceptions – they aren’t ever limited. You can also pay for Premium service which is faster since you are guaranteed some level of service. If that sounds impossible, the intrepid folks at Afrimesh showed that given free, slower service, people would pay for the faster service in an earlier implementation in Scarborough, Cape Town, South Africa, reaching profitability about a year ago!
Tomorrow we’ll be doing a three-point backhaul deployment at the UoN Lower Kebete School of Business tomorrow (connecting their Admin building, library, and student center). It’s mostly a training and deployment preparedness shakedown and each 5 GHz backhaul site will require something unique, for example a solar panel at the student center, hacking a Linksys to provide POE to the Ubiquiti devices at the admin building, and some challenging penetration at the library. And if we still have the energy, we’ll haul a large FabFi up the 12 story radio tower which will ultimately point to Nairobi school and a site in Mountain View.

Shopbot Tom is bleary-eyed after spending all night modifying and cutting out a large FabFi reflector to work with the Ubiquity 5 GHz NanoStation.
Yeay! Now back to my long, long to do list…








