[kictanet] GoK-Telkom-France Telecom agreement

[bitange at jambo.co.ke]

Andrea Bohnstedt,
The National Optic Fibre Broadband Infrastructure (NOFBI) is an open
access platform.  It is like any other highway in Kenya where you can
drive through with equal rights as other users.  It cannot and will never
be owned by any single operator.  That will negate the principal of open
access.  NOFBI was built leveraging on Telkom Kenya facilities
countrywide.  It therefore made sense to give them the Management and
Maitenance contract.  This is like giving your property to a real estate
company to manage within your terms.

The Government Capacity in Teams is mainly used within government and for
restoration purposes.  This excess capacity can be utilized by interested
parties and need to be managed without necessarily ceeding ownership.  The
Government will not create another competing entity in the telcoms sector
but must prudently utilize public resources.

Any business entity requires to always injection of capital equivalent to
their share participation.  Orange has been injecting working capital to
TKL without corresponding response from GOK.  The cost for 3G is an
equivalent capital injection from GoK.  Above all GoK owns part of TKL and
like any other business will be required from time to time to pay up or
receive what is due to it.

On past bills, it seems you may not be aware where we have come from.

On the decision to lower 3G licence, either way we were to face criticism.


Regards


Ndemo





> Dear all,
>
> I have been quite intrigued by the negotiations between GoK and France
> Telecom over their Telkom acquisition that were covered nicely
> consistently
> by the East African in recent weeks.
>
> The latest instalment here:
> http://www.theeastafrican.co.ke/news/How%20the%20French%20got%20their%20way%20in%20battle%20for%20Telkom%20Kenya/-/2558/942312/-/gktealz/-/index.html
>
> The article states that GoK and France Telecom have come to an agreements
> under which
>
>    - GoK will pay the USD10m fee for the 3G license for Telkom - in that
>    context, I'd be curious to know if CCk will refund USD15m to Safaricom
> as,
>    from what I understand, they had initially promised to do if the
> license fee
>    will be lowered from its initial USD25m?
>    - GoK will clear overdue bills to Telkom, contributions to the pension
>    fund, overdue payment to KBC: no issue with these since it appears fair
>    enough that GoK clears liabilities that precede the privatisation
> (never
>    mind the question why GoK/parastatals have been let to accumulate such
>    obligations in the first place).
>    - Telkom to manage and control GoK's 20% stake in TEAMS.
>
>
>    - France Telecom to be granted an exclusive operational and maintenance
>    contract for the government-owned, multimillion-dollar nationwide optic
>    fibre network. Since we had all these elaborate discussions recently in
> the
>    context of the new tariff regulations regarding competition and level
>    playing field, I wonder how this helps to create a level playing field?
>
> I haven't read much from GoK/CCK/Min of Information on this so far, so
> first
> of all, I'd be curious to know how much of the East African coverage is
> accurate, and if not, what the facts are - if the PS Information is
> reading
> along?
>
> And then I'd be interested to hear opinions on how this will affect the
> competitive landscape. Anyone thoughts?
>
> Have a good day and keep warm :)
>
> Andrea
>
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