Part 1: Why are broadband prices so high in South Africa compared to Kenya?

While in Kenya on a social media assignment last week, a friend told me that he pays 1 Kenyan Shilling for a SMS. On 1 October 2011, 1 South African Rand (ZAR) = 12.34 Kenyan Shillings (KES). When I convert Kenya’s cost of SMS in South African currency, this comes to 8 cents. The cheapest SMS rate in South Africa right now is 15 cents. Thus, this is close to 100% more expensive than the Kenyan rate! Why?

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