[Kictanet] Day 8 of 10 : - Projected Impact of OFC on the Stakeholders

Wed Jan 31 17:45:10 EAT 2007

Cool! u r on e-record- we expect something Regulatory from
you on or before Day 10.

thanx,
walu. 
--- joseph kihanya <kihanyajn at yahoo.com> wrote:

> Thanks Walu for the discussion moderation.
> 
> I am doing something on the regulatory framework and will
> post by day 10.
> 
> On operators I would expect that there woulda  be a
> reciprocation in price and QOS issues.
> I would expect that there would be publicly accessible
> interconnection agreements under the non-discriminatory 
> technology-neutral Open Access principles .
> I would also expect that there would have to bea  busines
> realignment to conform with new entrants at the local
> lvel who the operators would indeed agree not to want to
> "take over" asa soon asa  a ROI looks good.
> 
> 
> On the regulator, the paradigm shift in allowing
> competition and enforcing it would be key.Competition
> alone despite all that is siad about it is not known to
> benefit consumers largely where duopolies or oligopolies
> exits. product and price shadowing takes centre stage and
> one is not sure that the alternatives are not
> exhorbitant.
> 
> The regulator must also enforce QOS.
> 
> The consumer must be ready for a vibrant market and take
> up alternatives that make the best "cents".He /She must
> be able to walk out..and perhaps to an
> ombudsman(regulator) where QOS is  not as per SLA or
> other "promises.Whining loudly may help(See South
> Africans vs Telkom SA in the Daily News recently)
> 
> Kihanya
> 
> 
> 
> ----- Original Message ----
> From: John Walubengo <jwalu at yahoo.com>
> To: kihanyajn at yahoo.com
> Sent: Wednesday, January 31, 2007 10:11:24 AM
> Subject: [Kictanet] Day 8 of 10 : - Projected Impact of
> OFC on the Stakeholders
> 
> 
> I must thank all for your valuable views shared over the
> last two days regarding the previous theme :- what are
> the
> Best Models for Provisioning submarine OFC.
> 
> Three models seem to have persisted throughout the
> discussion, namely, Open Access (EASsy), Private-led
> (Flag), and our famous Consortium models. Where Mucheru
> mentions separation of Cable ownership from Cable
> Management fits in squarely with the Open Access
> thinking,
> whereby, the investors in the cable (Govt, Public,
> Private
> Companies) appoint an independent management Agent (at a
> fee) to Operate the Cable on their behalf on a
> cost-recovery, open access basis. i.e Open to current and
> future Operators wishing to connect to the landing points
> or invest further in the cable on equal basis).  The
> cable
> becomes an essential service or public good, from where
> Operators can compete to offer (other) Services at a
> Profit.
> 
> Flag- a Private Investment initiative came in with a
> variant model where the cable is –privately owned but
> promises to open access to the Landing points  - but aims
> to maximise returns on the investments made on the cable
> infrastructure by reselling capacity at market rates. 
> They
> also aim to play only at the Infrastructure level, rather
> than at all levels, namely Infrastructure (cable) and
> Services  (Network and Application), opting to leave that
> to ISPs and ASP(Application Service Providers)
> 
> Nobody really pushed the Consortium model, but probably
> Badru did hint strongly for such a model when he
> mentioned
> that Commercial interest should be let loose to play
> dynamically with the market forces.  The Consortium model
> is where a group of Operators get into a private, closed,
> commercial agreement aiming to build, own and operate a
> submarine cable with aim of maximising their returns
> (profit) in the shortest time possible –social
> connotation
> notwithstanding.
> 
> And this is where the Consumer has suffered.  The
> short-terms interests of investors must be balanced
> against
> the long-term social benefits that would accrue from a
> affordable bandwidth provisions.  Alex and LK seem to be
> voice of the consumer here, urging the Regulator to flex
> their muscle – probably now and more in future when the
> OFC
> is laid-out. 
> 
> In all this, the various financing options were not so
> pronounced as noted by Michael J. Apart from IPO
> recommendation from Kai and Bill,  the financing models
> (Equity, Debt, etc) has not quite come through and I hope
> someone could make comment on that within the remaining
> three days as we discuss our next theme:- What is the
> likely impact of the above models on the existing
> stakeholders (Operators, Regulator and Consumers)?  That
> is, what do we see as the roles of the above stakeholders
> in the new dispensation of the Optical Submarine Cable.
> The
> efloor is again open and we have two days on this one.
> 
> walu.
> Nb: a Face2Face meeting will follow up after this online
> discussion where all these issues will be streamlined.
> ~~~~~000~~~~~~
> Theme Reminder:
> 1) Why OFC (1day)
> 2) Existing Business Models for OFC provisioning (2days)
> 3) Existing/Appropriate Regulatory Models for OFC (2days)
> 4) Best Model (Business+Regulatory) for E. Africans
> (2days)
> <Ongoing-Open>
> 5) Projected Impact on Stakeholders (2days)
> <Pending>
> 6) Reconciling Stakeholder interests/Conclusions (1day)
> <Pending>
> 
> 
> 
> 
> 
> 
>
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>  
>
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