[kictanet] TEAMs to switch into Private Hands

[bitange at jambo.co.ke]

Dear Walubengo,


Q: Will the eventual majority shareholders - essentially the private
sector - operate the cable  on Open Access principles?  Specifically, the
following questions arise.

A: Competition alone will drive the cost low and if that fails, Government
can intervene using the capacity it holds and if that fails, the regulator
will have to intervene.

Q: 1. Will the cable be open for direct connectivity (at thesource in MSA)
to other future telco players?

A: Yes indeed. See Q3 responses below.

Q: 2. Will the price of connecting to the international fiber be driven by
profit-motives or will it be based on the 'cost-of-operating-the-fiber'
basis.

A: Price of connecting to the International fibre remaims cost of
operating the fibre but retail price will have an element of profit.  What
we shall guard agaist is exploitative prices.

Q: 3. What modalities exist for future investors who may wish to own part
of the fiber maybe 2 or 5years after the cable is operational- or will
this thing be a closed-club to the original financiers once the cable
becomes operational?(remember the consortium approach of EASSy?)

A: The Government of Kenya would continue to dilute its shares in order to
ensure healthy competion exist.  The model therefore is not a closed shop.

Q: 4. What are the steps involved in transparently transferring this
public resource into private sector?

A: You cannot force anyone to buy into Teams.  There are clear deadlines
by the financial arranger for making commitments.  The Standard Chatered
Bank were procured to make financial arrangements for the cable.  Although
sometimes Media misses the point here and there, it has done a wonderful
job keeping us on our toes.

Ndemo.


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