[Kictanet] Day 3 of 10: What are the existing Business Models for OFC provision?
Brian Longwe
brian at pure-id.com
Thu Jan 25 16:02:49 EAT 2007
For once I get to make my comment on the day it is due (good job,
Brian - keep it up) ....... {I heard that when you start talking to
yourself you should get worried..... how about when you start sending
email to yourself?}
HAHAHAHA!
Anyway on a more serious note, some years ago I had a v. interesting
dialog on this issue of submarine infrastructure. The people I was
talking to (don't remember exactly who) {is loss of memory a sign of
age, senility, insanity or all 3 together} hehehe.....
---as I was saying, the people I was talking to mentioned that the
perfect model has existed for the longest time in the oil & gas
pipelines in different parts of Europe. These cross multiple
jurisdictions, are critical to the livelihoods and economies of all
the stakeholders, support the existence and stability of a wide
spectrum of sectors, and at the end of day provide something that an
individual or family pays for.
Taking all of the above into consideration - these projects are
deliberately designed not to make a profit. (In fact it was hinted
that some of them are designed to make a loss - pssst don't say
anything to the banks - snicker, snicker, hee, hee)
So at the end of the day you have a consortium<ouch> or group of
parties that come together to form an SPV <yay> which then raises the
funds required and builds the damn thing - so that all the various
"downstream" parties can make their money, needless to say this helps
the circulation of currency, etc, etc, etc...
So, my take is that OpenAccess - SPV - build at cost - don't aim for
profit - facilitate growth elsewhere is the way to go....
I'll stop now because if I don't I may start writing some of the
things I want to say to myself in a separate email ;-)
Brian
On Jan 25, 2007, at 10:29 AM, Eric Osiakwan wrote:
> I dont understand what you mean by c) Open Access Model (Proposed
> by Academia/Civil Societies), not that i have any problem with who
> proposed it but i think the premise is what does it mean as a model?
>
> Open Access primarily underscores the need to consider other
> elements other than private interest so Open Access is actually the
> multistakeholder model that tries to unify or bring under one
> umbrella the various interest. Be it private, public, academia, CS
> etc.
>
> NB: There is also a Hybrid model but sorry am not in a position to
> dig on it right now
>
>
> On 25 Jan 2007, at 10:44, John Walubengo wrote:
>
>> O.K....
>>
>> Even though Badru has jumped ahead into Day 5 theme (i.e
>> Best Model) I wish to confirm if we are agreed that there
>> seems to be only the three models for Providing OFC,
>> namely,
>> a) Purely Private Sector (Practiced in Developed Economies)
>> b) Consortium Model (Practiced in SAT3 example)
>> c) Open Access Model (Proposed by Academia/Civil Societies)
>>
>> could there be a 4th model out there? Maybe there is a
>> middle ground model where all stakeholders are happy. Plse
>> voice your opinion today before tomorrow - where we shall
>> start a new Theme on 'appropriate Regulatory models for
>> managing OFC'.
>>
>> walu.
>> Themes Reminder
>> 1) Why OFC (1day)
>> 2) Existing Business Models for OFC (2days)
>> 3) Existing/Appropriate Regulatory Models for OFC (2days)
>> 4) Best Model (Business+Regulatory) for E. Africans (2days)
>> 5) Projected Impact on Stakeholders (2days)
>> 6) Reconciling Stakeholder interests/Conclusions (2days)
>>
>> --- John Walubengo <jwalubengo at kcct.ac.ke> wrote:
>>
>>> Some interesting insights from Badru and Njorohio...
>>>
>>> walu.
>>>
>>>> Date: Wed, 24 Jan 2007 19:16:22 +0300
>>> From: Badru Ntege <ntegeb at one2net.co.ug>
>>> To: APC - Private list for use by EASSY Workshop
>>> Participants
>>> <fibre-for-africa at lists.apc.org>
>>> CC: African Information Society Initiative - Discussion
>>> Forum
>>> <aisi-l at lyris.bellanet.org>,
>>> DigAfrica at yahoogroups.com, John Walubengo
>>> <jwalubengo at kcct.ac.ke>,
>>> KIPlist <kiplist-cl at lyris.idrc.ca>,
>>> Africa ICT Policy Forum <africtic at dgroups.org>
>>> Subject: Re: [Fibre-for-africa] Join KICTAnet's online
>>> discuission: What is
>>> the best model for providing the Fiber Optic Submarine
>>> Cable to East
>>> Africans?
>>>
>>> I think we all know "who shot EASSY". it was politics and
>>> egos which
>>> have never been good bed fellows. The guilty parties that
>>> pulled the
>>> trigger are kenya and South Africa though the jury is
>>> still out on this.
>>> Then along the way came some other characters who used
>>> the impasse to
>>> get some free publicity (we all know who they are ). when
>>> time to pay up
>>> came they all disappeared and guess who is suffering.
>>>
>>> If government's and Nepad want to be in please consult
>>> the community,
>>> lay the law and rules of engagement and stay away. then
>>> next should be
>>> those who have the pockets to come in and build the
>>> fiber.
>>>
>>> I mean at the end of the day business rules will kick in
>>> and eventually
>>> the price will come down. If government wants to
>>> intervene to bring
>>> costs down then give the businesses an incentive to offer
>>> good pricing,
>>> maybe tax waivers etc.
>>>
>>> Lets forget the nice world in the clouds where everyone
>>> has access and
>>> buys at the same price etc. Some things need to be given
>>> time to develop
>>> naturaly.
>>>
>>> Many things and services in all our walks of life are
>>> built by private
>>> entities some are closed clubs and others are open. that
>>> is a business
>>> decision.
>>>
>>> Forget open access and all that baloony, all those
>>> consultants who were
>>> singing all this nice to the ears stuff are back sitting
>>> behind there
>>> 10mB links costing them a few dollars while we are
>>> sitting on our 16k
>>> 32k links moaning EASSY.
>>>
>>> Bottom line allow the operators to build the cable
>>> Set operating criteria and acceptable pricing levels
>>> Government concentrates on facilitating internal networks
>>> to Rural
>>> communities
>>> Encourage the production of local content
>>> Put in measures that will create demand and thus market
>>> forces to bring
>>> the prices down.
>>>
>>> my 2 cents
>>>
>>>
>>> gathuri njorohio wrote:
>>>> Hi All
>>>> The EASSY cable implementation seems to be stalling due
>>> to
>>>> disagreement on financing and the way to operate and
>>> manage it.
>>>> The Eastern african countries will continue being
>>> overcharged for
>>>> their international traffic when they pass through
>>> satellite due to
>>>> lack of this cheap way of carrying traffic through the
>>> submarine cable.
>>>> We are aware of the regional economic bodies that are
>>> mandated to
>>>> promote trade between the countries and I suggest that
>>> they should
>>>> also invest in ICT .COMESA and SADC are the bodies
>>> catering for trade
>>>> in south and eastern Africa.Why can't they take the
>>> opportunity to
>>>> invest in this cable so that it can benefit the
>>> countries they are
>>>> serving.
>>>> A company can be formed answerable to these two bodies
>>> for the
>>>> installation , maintenance and operation of this cable.
>>>> The western africa and central africa can do the same
>>> for the western
>>>> cable link.
>>>> The existing cables can continue to give redundancy for
>>> the new cables.
>>>> The e commission of the NEPAD could facilitate these
>>> intiatives as a
>>>> neutral body for the development of Africa.
>>>> Eng. Njorohio
>>>> */alice at apc.org/* wrote:
>>>>
>>>> (Apologies for Cross positing)
>>>>
>>>>
>>>>
>>>> Attn: Telco Operators, Regulators, Academia, Media,
>>> Civil Society,
>>>> Consumers
>>>>
>>>> The Last Frontier: The East African Coast remains
>>> the last region
>>>> in the
>>>> world that is yet to connect to the cheaper and
>>> more reliable Global
>>>> Submarine Optical Fiber Network. EASSy, TEAMS and
>>> others promise
>>>> to change
>>>> that by providing this crucial link.
>>>>
>>>> EASSy, TEAMS, etc,: What is the best model for
>>> providing the Fiber
>>>> Optic
>>>> Submarine Cable to East Africans?
>>>>
>>>> Join the Online Discussion: Starting Monday Jan
>>> 22nd – Sat Feb 3rd
>>>> 2007 and
>>>> make your views be known regarding this historic
>>> development.
>>>>
>>>> to subscribe:
>>> http://kictanet.or.ke/mailman/listinfo/kictanet
>>>> Please send your details to
>>> jkimiti at email.kictanet.or.ke
>>>>
>>>>
>>>>
>>>>
>>>>
>>>> _______________________________________________
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>>>>
>>>
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>>>>
>>>>
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>
> Eric M.K Osiakwan
> Executive Secretary
> AfrISPA (www.afrispa.org)
> Tel: + 233.21.258800 ext 2031
> Fax: + 233.21.258811
> Cell: + 233.244.386792
> Handle: eosiakwan
> Snail Mail: Pmb 208, Accra-North
> Office: BusyInternet - 42 Ring Road Central, Accra-North
> Blog: http://blogs.law.harvard.edu/eric/
> Slang: "Tomorrow Now"
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