[kictanet] Local Content vs Submarine Cable.

[John Walubengo]

--- robert yawe <robertyawe at yahoo.co.uk> wrote:
>>>As I keep saying the solution is to concentrate on 
creating local content and keeping local traffic local,
let the rest of the world beat a path to us and not the
reverse.  
>>cut>>
Yawe,

I hear you. Infact 2years ago I was involved in some
research that settled almost on your point of view 

http://www.diplomacy.edu/poolbin.asp?IDPool=127

But with the slight variation that we need BOTH the local
content and the submarine cable. Its sort of a chicken and
egg problem. Rather than expect one to precede the other,
why not initiate both?

walu.


--- robert yawe <robertyawe at yahoo.co.uk> wrote:

> Hi,
> 
> Welcome to the beginning of the end, the cable is going
> private and it will remain private exactly as happened in
> West Africa.
> 
> Can those of you who where changing your business plans
> to reflect lower internet access instead increase the
> cost of that component.
> 
> As I keep saying the solution is to concentrate on
> creating local content and keeping local traffic local,
> let the rest of the world beat a path to us and not the
> reverse.  
> 
> The article in the Nation last week about outsourcing
> confirmed my fears our outsourcing model is a reverse
> pyramid as opposed to the rest of the world.  Our
> outsourcing companies have 30% local provision and 70%
> off shore yet the countries we are competing against have
> the reverse.
> 
> Time reveals all.
>  
> Robert Yawe
> KAY System Technologies Ltd
> Phoenix House, 6th Floor
> P O Box 55806 Nairobi, 00200
> Kenya
> 
> Tel: +254722511225, +254202010696
> 
> ----- Original Message ----
> From: "bitange at jambo.co.ke" <bitange at jambo.co.ke>
> To: robertyawe at yahoo.co.uk
> Cc: KICTAnet ICT Policy Discussions
> <kictanet at lists.kictanet.or.ke>
> Sent: Monday, 17 March, 2008 11:00:02 AM
> Subject: [kictanet] TEAMs to switch into Private Hands
> 
> 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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> "easy access to the world" 
> 
> 
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