[kictanet] Fwd: SV: [AfrISPA.Discuss] Undersea cable plantangled in acrimony inSouth Africa

Fri Sep 14 15:21:50 EAT 2007

Brian,
There is one thing that seems to be missing in this scenario, that is
that the next frontier (or is it current) where economic,
technological and cultural  wars will be fought and won is on the
internet. The question of these cables is a question of self
determination. SA is excersing their right to self determination. Who
are we as foreigners to attempt to sway what the government of SA
wants to do for its people? Remember SA wants to be seen as a beacon
of hope in the NEPAD region. They, of all people, know exactly what it
means to be foreign owned. Foreign corporations (read foreigners to SA
who include other African nations) are keen to get a hold of this
cable and hence SA market.

I will stand alone in saying Bravo Ms Minister.

It is in my opinion that every African government needs to articulate
its self determination stance. Only after that vision has been fully
communicated to and all sundry will it be able to move forward. Now
that the good minister has articulated SA's position, let everyone
know that the grub train called EASSY will not be stopping in SA.

Like I said before, unless you have walked in their shoes do not
question their intent.

Joe

On 9/14/07, Brian Longwe <brian at isisweb.nl> wrote:
> The bottom line - and the truth is that SA controls about 70% of
> SAT-3 - a cable that has had almost zero impact on the West African
> seaboard.
>
> Why is internet bandwidth in Nigeria more expensive than satellite
> bandwidth? Because of Telkom SA
> Why do many of the sea-facing countries on the West African coast not
> have broadband that is similar levels of cost to other parts of the
> world where there is submarine fibre? Because of Telkom SA.
>
> Why is the situation like that? Why does Telkom SA have that kind of
> stranglehold? Because of a very corrupt American Telco called SSB -
> that "owned" Telkom SA at the time when these contracts/arrangements
> were being put in place.....
>
> There is a lot of history behind that scenario....
>
> What SA's foreign minister just did is create a trade barrier - let's
> see how long she survives - she has dug a hole that I think she won't
> be able to get out of this time...
>
> Mblayo
>
> On Sep 14, 2007, at 8:28 AM, Joseph Manthi wrote:
>
> > This is from the venerable news magazine The Economist:
> >
> > Telecoms in Africa
> >
> > Not so EASSy
> > Aug 9th 2007
> >> From The Economist print edition
> >
> > A plan to run a submarine cable down Africa's east coast runs into
> > difficulty
> >
> >
> > THE East African Submarine Cable System (EASSy), a project to wire up
> > several African countries with high-speed optical fibre, is not living
> > up to its name. The plan, hatched in 2003, was simple enough: lay an
> > 9,900km (6,200-mile) submarine cable along the east coast of the
> > continent, from Sudan to South Africa, touching at several points
> > along the way, and then link it up with the rest of the world. But the
> > scheme has become entangled in disagreements between operators and
> > governments over its business model.
> >
> > The logic of the project is clear: extra connectivity would reduce
> > Africa's dependence on the SAT-3 cable, which runs from Iberia down
> > the west coast of the continent, and on expensive satellite links, the
> > only option in some countries. Cheaper connectivity would promote
> > development and make African countries more attractive destinations
> > for offshoring. Connecting a call-centre with 25 agents is said to
> > cost $17,000 a month in Kenya, compared with $600–900 elsewhere.
> >
> > The disagreement centres on the structure of the EASSy consortium,
> > made up of around 30 African and international telecoms operators. The
> > governments of some countries, including South Africa, want to avoid a
> > repeat of what happened with SAT-3. That cable is run by a consortium
> > that allows only one telecoms operator to sell capacity in each
> > country. The lack of competition means prices are so high that
> > satellite is often cheaper, says Alan Mauldin of TeleGeography, a
> > consultancy.
> >
> > To prevent such an outcome with EASSy, several governments, acting
> > through the New Partnership for Africa's Development (NEPAD), have
> > threatened to withhold landing rights for the cable unless their
> > proposals for how to run it are accepted, says Edmund Katiti of NEPAD.
> > They want governments to join the consortium and to have a veto over
> > strategy; and they want any African operator to be able to buy
> > wholesale capacity at a regulated (ie, low) price. They are even
> > talking of building an entirely new cable on these terms, under
> > NEPAD's supervision.
> >
> > The operators in the EASSy consortium say this is an attempt to hijack
> > an existing commercial project and micromanage the industry. They do
> > not like the sound of government vetoes or regulated pricing. And
> > EASSy's current rules will mean that consortium members will compete
> > to sell capacity in the same markets, driving down prices, says Michel
> > Rouilleault of Axiom, a consultancy attached to EASSy.
> >
> > Critics respond that these rules, the details of which are unclear but
> > which link the cost of access to the size of the operator's
> > investment, could lead to high prices in countries where the local
> > operator has only a small stake in the project. In South Africa, where
> > several competing operators have stakes, there will be plenty of
> > competition, but this may not be true elsewhere.
> >
> > The delays to EASSy have helped to spur other projects, including
> > SEACOM, which has just appointed a contractor to lay a cable along a
> > similar route, and TEAMS, which will link Kenya with the United Arab
> > Emirates. India's Flag Telecom also plans to lay a cable to Kenya. At
> > the moment there is insufficient demand to support so many cables,
> > says Russell Southwood, an expert on African telecoms. But that may
> > prompt operators to offer low prices to stimulate demand. So whatever
> > happens to EASSy, getting cheaper bandwidth along Africa's east coast
> > could soon be a lot less difficult.
> >
> >
> > On 9/13/07, Manthi, Joseph <Joseph.Manthi at fmr.com> wrote:
> >> Alex
> >> Just know that you have my help if you need it.
> >>
> >> Joe
> >> --------------------------
> >> Sent from my BlackBerry Wireless Handheld
> >>
> >>
> >> ----- Original Message -----
> >> From: Alex Gakuru <alex.gakuru at yahoo.com>
> >> To: Manthi, Joseph; jmanthi at gmail.com <jmanthi at gmail.com>
> >> Cc: kictanet at lists.kictanet.or.ke <kictanet at lists.kictanet.or.ke>
> >> Sent: Thu Sep 13 14:09:06 2007
> >> Subject: Re: [kictanet] Fwd: SV: [AfrISPA.Discuss] Undersea cable
> >> plantangled in acrimony inSouth Africa
> >>
> >> Hi Joe,
> >>
> >> I'd be glad to mobilise and work with all consumers
> >> but if you on note my message, I requested Dr. Ndemo
> >> to give us that chance. We wait and see what tomorrow
> >> brings.
> >>
> >>
> >> Alex
> >>
> >> --- "Manthi, Joseph" <Joseph.Manthi at fmr.com> wrote:
> >>
> >>> Alex
> >>> Please I beg you to prepare that SV to buy TKL. Let
> >>> me know if youi need help in doing this.
> >>>
> >>> Thanks
> >>> Joe
> >>> ------Original Message------
> >>> From: Alex Gakuru
> >>> Sender:
> >>>
> >> kictanet-bounces+jmanthi=gmail.com at lists.kictanet.or.ke
> >>> To: jmanthi at gmail.com
> >>> Cc: KICTAnet ICT Policy Discussions
> >>> Sent: Sep 13, 2007 12:43 PM
> >>> Subject: Re: [kictanet] Fwd: SV: [AfrISPA.Discuss]
> >>> Undersea cable plantangled in acrimony inSouth
> >>> Africa
> >>>
> >>> wow! "Open Access" is music to many no just my ears.
> >>>
> >>> I wish you failure at selling Telkom this way,
> >>> honestly. That said, could you allow me to organise
> >>> a
> >>> Special Purpose Truck for Kenyan consumers to invest
> >>> in Telkom more money that the Shs. 5 Billion? Fast
> >>> tracking (READ get round) NSE rules?
> >>>
> >>> Thanks.
> >>>
> >>> --- bitange at jambo.co.ke wrote:
> >>>
> >>>> Dear Alex,
> >>>> Telkon will not own Teams.  The Government of
> >>> Kenya
> >>>> will own 40% stake in
> >>>> the Teams SPV while regional operators and
> >>> investors
> >>>> will own 45%.  The
> >>>> remaining 15% shall be owned by Etisalat.  The
> >>>> Government shall ensure
> >>>> open access in both Teams and the Terrestrial
> >>>> Networks to enable both
> >>>> large and small enterprises to compete.
> >>>>
> >>>> Do not worry about the sale of TKL since we have
> >>> not
> >>>> sold it yet and we
> >>>> shall not sell it if the deal is not good.
> >>>>
> >>>>
> >>>> Regards
> >>>>
> >>>>
> >>>> Ndemo.
> >>>>
> >>>>
> >>>>
> >>>>
> >>>>> Before quickly "thirding", I urge on the need to
> >>>> have
> >>>>> light shed on TEAMS investment structure,
> >>>> otherwise we
> >>>>> could end up never getting the envisaged cheap
> >>>>> bandwidth.
> >>>>>
> >>>>> Why? After 51% of Telkom Kenya is sold to
> >>> British
> >>>>> Telcom (or another) then whoever will have the
> >>>> cable
> >>>>> ownership transfered to them thus could dictate
> >>>> what
> >>>>> the final price will be.
> >>>>>
> >>>>> Little Telkom sale (Shs 5 Billion) is happening
> >>>> just
> >>>>> when the promising CDMA is getting rolled out.
> >>>> Going
> >>>>> by last year's Safaricom profits, the sale value
> >>>> is
> >>>>> also K
> >>>
> >>> --------------------------
> >>> Sent from my BlackBerry Wireless Handheld
> >>>
> >>>
> >>
> >>
> >>
> >>
> >> _____________________________________________________________________
> >> _______________
> >> Check out the hottest 2008 models today at Yahoo! Autos.
> >> http://autos.yahoo.com/new_cars.html
> >>
> >>
> >
> >
> > --
> > Joseph Manthi
> > CEO
> > MEO Ltd
> > http://www.meoltd.com
> >
> > _______________________________________________
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> >
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>
>

-- 
Joseph Manthi
CEO
MEO Ltd
http://www.meoltd.com